New Delhi, February 24 Omnitech Engineering, a manufacturer of precision-engineered components, raised over ₹174 crore from anchor investors on Tuesday, a day before the opening of its initial public offering (IPO).
The IPO saw participation from several domestic and global investors, including ICICI Prudential Mutual Fund (MF), Nippon India MF, WhiteOak Capital MF, Ashoka India Equity Investment Trust Plc, Malabar India Fund, Edelweiss MF, and Allianz Global Investors, according to a circular uploaded on the BSE website.
Of the total anchor allocation, 54.42 per cent, amounting to 41,84,928 shares worth nearly ₹95 crore, was allocated to five domestic mutual funds across eight schemes.
According to the circular, Omnitech Engineering has finalized the allocation of 76,91,629 equity shares to anchor investors at ₹227 per share, aggregating to approximately ₹174.6 crore.
The company's ₹583-crore IPO will open for public subscription on February 25 and close on February 27.
The price band has been fixed at ₹216 - ₹227 per share, valuing the company at over ₹2,800 crore.
The IPO is a combination of fresh issuance of equity shares worth up to ₹418 crore and an Offer For Sale component of equity shares valued at ₹165 crore by promoter Udaykumar Arun Kumar Parekh.
The proceeds from the fresh issue will be used to repay debt, set up two new manufacturing facilities, fund capital expenditure requirements, and for general corporate purposes.
Omnitech Engineering manufactures high-precision engineered components and supplies to global customers across industries such as 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.
Omnitech Engineering, based in Rajkot, will compete with companies like Azad Engineering, Unimech Aerospace and Manufacturing, PTC Industries, Dynamatic Technologies, and MTAR Technologies.
The company said that half of the issue size is reserved for qualified institutional investors, 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.
Omnitech Engineering will make its stock market debut on March 5. The IPO is being managed by Equirus Capital and ICICI Securities.
