Omnitech Engineering IPO - Should you apply or skip?

Omnitech Engineering is launching an IPO worth ₹583 crore, which includes a fresh issue of 1.84 crore shares raising ₹418 crore, along with an offer for sale (OFS) of 0.73 crore shares amounting to ₹165 crore.

The Omnitech engineering IPO is set to open for subscription from 25 Feb to 27 Feb. The allotment is expected to be completed by 2 Mar 2026. The company is likely to list on both the BSE and NSE on March 5, 2026.

Ominitech Engineering has fixed its issue band between ₹216 and ₹227 per share. Investors will need to apply for a minimum lot size of 66 shares. ₹14,982 is the minimum investment required for retail investors. 

Omnitech Engineering company details

Omnitech Engineering deals with the manufacturing of high-quality components and precision engineering solutions with a domestic and global customer base. It has multiple manufacturing facilities located in Rajkot, Gujarat. Its registered and corporate office is at GIDC Lodhika Industrial Estate. 

The company was established as a partnership firm in 2006, which became a public limited company in 2024. Currently, the company operates 3 manufacturing facilities.  

Omnitech Engineering has grown its revenue from operations from ₹1,781.80 million in Fiscal 2024 to ₹3,429.13 million in Fiscal 2025, giving a year-on-year growth of 92.45%. It has reported a Profit-After-Tax (PAT) of ₹438.65 million for Fiscal 2025 with a PAT margin of 12.54%. The company's EBITDA is ₹1,176.47 million with 34.31% EBITDA margin.

The company’s Return on Equity (RoE) stood at 21.55% and Return on Capital Employed (RoCE) at 16.08% in Fiscal 2025.

The proceeds from the Fresh Issue will be utilised for repayment or prepayment of outstandings, setting up new manufacturing facilities, and rooftop solar panel installation. The Offer for Sale proceeds will go to the Promoter Selling Shareholder.

Equirus Capital Private Limited and ICICI Securities Limited are the Book Running Lead Managers to the issue, and MUFG Intime India Private Limited is the Registrar to the Offer.

Should you invest in the IPO? 

Before getting to the final verdict, let’s see the pros and cons of Omnitech Engineering.

Pros of Omnitech Engineering

• The company signals the increased demand and order execution. The company has shown strong business momentum by reporting a sharp growth of 92.45% in revenue in FY25. 
• High margins provide a cushion against cost pressures and economic slowdowns. With an EBITDA margin of over 34%, the company demonstrates strong operational efficiency. 
• The company has stated a 21.55% of return on equity, reflecting efficient utilisation of shareholders’ capital. 
• It has reported around 75% of its revenue from the international market, especially from developed economies. This provides access to high-value customers and global growth opportunities.
• The company’s net worth has strengthened ahead of the IPO. It has increased from ₹2,044.37 million as of 31 Mar 2025 to ₹788.019 million as of 31 March 2024.

Cons of Omnitech Engineering

• Fluctuations in the cash flow will increase financial risk as the company has a net debt-to-equity ratio of 1.6x, signalling significant leverage. 
• Currency risk, trade regulations, and global economic slowdowns will directly affect the company's growth and profit margins as company's 75% of the revenue is from the foreign market.
• As per the company’s RHP, Ominitech Engineering has reported a flat growth in FY24 and then surged in FY25. It signals the growth fluctuations. 
• Tariffs and legislation risk is also there. 

Whether you should consider this IPO depends on your risk appetite, existing portfolio allocation, and investment goals. Investors who are looking for long-term growth and believe in the expansion of India’s precision engineering and export-driven manufacturing sector may consider this IPO.

As of 24 February 2026, Omnitech Engineering IPO’s latest Grey Market Premium (GMP) stands at ₹7. Based on the price band of ₹216 to ₹227, the estimated listing price is around ₹234, indicating a potential gain of approximately 3.08% per share. However, this is not assured.

Wrapping up

Omnitech Engineering IPO presents a mix of strong growth potential and moderate financial risk. The company has delivered noticeable revenue growth, healthy operating margins, and good return ratios. Its global exposure and improving net worth are added advantages.

But, investors must consider the company’s high debt levels, working capital intensity, and dependence on export markets. The current GMP suggests limited short-term listing gains at current sentiment levels.