Omnitech Engineering Set to Go Public with Rs 850 Crore IPO

Omnitech Engineering, known for its precision-engineered components, announced plans to raise Rs 850 crore via an initial public offering (IPO). The move comes as the Rajkot-based company aims to expand its operations.

The IPO consists of fresh equity shares worth up to Rs 520 crore and an offer for sale valued at Rs 330 crore by the promoter, Udaykumar Arunkumar Parekh. As outlined in the draft red herring prospectus, a pre-IPO placement of shares totaling Rs 104 crore is also planned, potentially reducing the fresh issue size.

Funds raised will be used to repay debts and set up two new manufacturing facilities, alongside other capital expenditures. Omnitech's components are widely used across industries like energy and aerospace, supplying over 220 clients in 22 countries. The shares will be listed on the BSE and NSE.

(With inputs from agencies.)