Omnitech Engineering shares tumble nearly 10 pc in market debut

New Delhi, Mar 5 (PTI) Shares of Omnitech Engineering Ltd, a manufacturer of precision-engineered components, on Thursday ended with a discount of nearly 10 per cent against the issue price of Rs 227.

The stock started trading at Rs 205, down 9.69 per cent from the issue price on the BSE. Later, it ended at Rs 205.15, a drop of 9.62 per cent.

At the NSE, the stock began trading at Rs 202, registering a decline of 11 per cent. Shares of the firm ended at Rs 204.93, down 9.72 per cent.

The company's market valuation stood at Rs 2,537.01 crore.

In traded volume terms, 4.18 lakh shares of the firm were traded at the BSE and 66.46 lakh shares on the NSE during the day.

The initial public offer of Omnitech Engineering Ltd received 1.14 times subscription on the last day of bidding on Friday.

The Rs 583-crore IPO had a price band of Rs 216-227 per share.

The IPO was a combination of fresh issuance of equity shares worth up to Rs 418 crore and an Offer For Sale component of equity shares valued at Rs 165 crore by promoter Udaykumar Arunkumar Parekh.

Proceeds from the fresh issue will be utilised to repay debt, set up two new manufacturing facilities, fund capital expenditure requirements and general corporate purposes.

Omnitech Engineering manufactures high-precision engineered components and supplies to global customers across industries like energy, motion control & automation, industrial equipment systems, and other diversified industrial applications.

Its clientele includes Halliburton Energy Services, Suzlon, Oshkosh Aerotech, Weatherford, Lufkin Industries, Oilgear, Donaldson Company, PUSH Industries and Bharat Aerospace Metals. PTI SUM HVA