Omnitech Engineering IPO Upcoming
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About Omnitech Engineering
Omnitech Engineering is a high-precision engineered components and assemblies manufacturer serving global customers across energy, motion control & automation, industrial equipment systems, and metal forming industries. With 18 years of experience, the company specializes in safety-critical applications, manufacturing components ranging from 0.003 kg to 503.33 kg in weight.
Operating from two manufacturing facilities in Rajkot, Gujarat, equipped with 309 CNC machines and advanced testing capabilities, Omnitech maintains precision levels up to 5 microns. The company serves over 220 customers across 22 countries, with the majority of revenue generated from international markets including the USA, UAE, Germany, and Canada.
Recognized as one of India’s fastest-growing manufacturers in this sector, Omnitech holds multiple quality certifications including ISO 9001:2015, AS9100:2016, and API specifications. The company also operates a warehouse in Houston, USA, and is supported by a workforce of 1,527 employees with plans for facility expansion in Gujarat.
Financials of Omnitech Engineering
Issue size
| Funds Raised in the IPO | Amount |
| Overall | ₹850 crores |
| Fresh Issue | ₹520 crores |
| Offer for Sale | ₹330 crores |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Repayment/prepayment of certain outstanding borrowings | 140 (26.92%) |
| Setting up new projects at proposed facility 1 | 120.65 (23.20%) |
| Setting up new projects at proposed facility 2 | 93.03 (17.89%) |
| Capital expenditure for purchase and installation of solar panels on the roof-top at, and, purchase of new equipment / machinery for, Existing Facility 2 | 15.70 (3.02%) |
| General corporate purposes | – |
Strengths
- The company has strong relationships with marquee clients across diverse, high-value industrial sectors.
- Robust global delivery model supports exports across 22 countries efficiently.
- The company has two ISO-certified plants with scale, flexibility, and port proximity.
- Diversified product range driven by advanced machining and custom development.
- Revenue grew at 39% CAGR with strong margins and high exports.
Risks
- High dependence on top 10 customers poses significant revenue concentration risk.
- Heavy export reliance exposes business to geopolitical and international trade risks.
- High working capital needs may strain operations and require external funding.
- Heavy reliance on the energy sector; slowdown may impact revenue and growth.
- Reliance on third-party logistics poses risks of delay, cost, disruption.
- Dependence on few material suppliers may impact costs, timelines, and quality.
- High import dependence, especially on China, poses supply and cost risks.