The pace of new issues has slowed down slightly, but new IPOs are still being launched every week. The latest to join the list is Omnitech Engineering. This Rs 583 crore issue opened today.

The company’s issue is a combination of a fresh equity issue and an offer for sale, with the precision manufacturing firm seeking to utilise the fresh capital towards debt repayment and funding new projects.

Currently, Omnitech’s shares are trading at a  premium in the unlisted markets. Here are five must-know details about the Omnitech Engineering IPO:

1. Omnitech Engineering IPO: Offer details and lead managers

    The IPO is a book-built issue worth Rs 583 crore, comprising a fresh issue of 1.84 crore shares aggregating to Rs 418 crore. The offer for sale (OFS) component consists of 73 lakh shares amounting to Rs 165 crore.

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    The price band for the shares has been fixed at Rs 216-227, with eligible employees receiving a discount of Rs 11 per equity share.

    The book-running lead managers for the IPO are Equirus Capital Private and ICICI Securities, while MUFG Intime India Private is the registrar to the issue.

    2. Omnitech Engineering IPO: Subscription timeline

      The IPO has opened for public subscription today, February 25, and will close on February 27. Tentatively, the shares are expected to be allotted by March 2.

      Eligible bidders are expected to receive the shares in their demat accounts by March 4, with the refund process also scheduled for the same day. Omnitech Engineering is expected to list on the NSE and BSE by March 5.

      3. Omnitech Engineering IPO: Lot size

        Retail investors may bid for a minimum of one lot comprising 66 shares, translating to an investment of Rs 14,986 (based on the upper price band). The lot size for small NIIs stands at 14 lots, equating to 924 shares, while big NIIs are required to bid for a minimum of 67 lots, equating to 4,422 shares.

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        4. Omnitech Engineering IPO: GMP

          In the unlisted markets, the shares are currently trading at Rs 231, implying a premium of Rs 4 or 1.76% over the upper end of the price band. This represents a decline from Monday’s premium of Rs 7, when the shares were trading at Rs 234.

          However, it is important to note that the GMP is an unofficial indicator of the listing price and may fluctuate based on market conditions.

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          5. Omnitech Engineering IPO: Utilisation of net proceeds

            Of the Rs 418 crore raised through the fresh issue, the company will utilise the majority portion—approximately Rs 234 crore—towards setting up new manufacturing facilities. Omnitech will deploy Rs 50 crore towards debt repayment, while over Rs 18 crore will be utilised for the purchase of equipment and new machinery, as per the company’s RHP.

            The remaining amount will be used for general corporate purposes. The amount raised through the OFS will not form part of the company’s net proceeds.