ET NEWS

Omnitech Engineering, a manufacturer of precision-engineered components, on Friday fixed a price band of Rs 216-227 per share for its Rs 583 crore upcoming Initial Public Offering (IPO). At the upper end, the company is valued at over Rs 2,800 crore. The company's initial share sale will open for public consumption on February 25 and conclude on February 27, while the bidding for anchor investors will take place on February 24, according to a public announcement. The IPO is a combination of fresh issuance of equity shares worth up to Rs 418 crore and an offer for sale component of equity shares valued at Rs 165 crore by promoter Udaykumar Arunkumar Parekh. Proceeds from the fresh issue will be utilised to repay debt, set up two new manufacturing facilities, fund capital expenditure requirements and general corporate purposes. Omnitech Engineering manufactures high-precision engineered components and supplies to global customers across industries like 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. Rajkot-based Omnitech Engineering will compete with the likes of Azad Engineering, Unimech Aerospace and Manufacturing, PTC Industries, Dynamatic Technologies and MTAR Technologies. The company said that half of the issue size has been 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.