Omnitech Engineering IPO Review: Precision Engineering Growth with Valuation Risks | Price, Financials & Our View
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Blogs / IPO Note / Omnitech Engineering Limited IPO Review: Precision Engineering Growth with Valuation Risk
By Sushil Finance
25 February 2026 • 8 MINUTES READ
Omnitech Engineering

Omnitech Engineering Limited IPO Review: Precision Engineering Growth with Valuation Risk

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IPO Details

Issue Opening Date: February 25, 2026
Issue Closing Date: February 27, 2026
Issue Size: Rs. 583.00 Cr. (at upper price band of Rs. 227)
Fresh Issue: Rs. 418.00 Cr.
Offer For Sale: Rs. 165.00 Cr.
Face Value: Rs. 5
Price Band: Rs. 216 to Rs. 227 per equity share
Employee Discount: Rs. 11 per equity share
Lot Size: 66 shares and multiples thereafter
Minimum Application Amount: Rs. 14,982 (66 shares)
Maximum Application Amount: Rs. 1,94,766 (858 shares)
Small HNI: Rs. 2,09,748 (924 shares)
Big HNI: Rs. 10,03,794 (4,422 shares)

Company Overview

The IPO of Omnitech Engineering Limited offers investors exposure to the precision engineered components sector, supplying to global industries such as energy, motion control & automation, industrial equipment systems and metal forming applications.

While the company has demonstrated strong revenue growth and a healthy order book, valuation levels and sector-specific risks require careful consideration before subscribing.

Incorporated in 2009, Omnitech Engineering manufactures high precision engineered components and assemblies used in safety-critical applications across global industries.

The company manufactures components ranging from 0.003 kg to 503.33 kg, diameter from 1.27 cm to 1 meter, and length from 0.2 cm to 10 meters.

It supplies to over 256 customers across 24 countries including USA, India, UAE, Germany, Bulgaria, Sweden, UK, France, Australia and Canada.

As of September 30, 2025, it operated 3 manufacturing facilities in Metoda, Chhapara and Padavala, Rajkot, Gujarat. The company had an order book of Rs. 1,764.78 Cr., representing 551% of FY25 revenue.

Through its subsidiary Novatro Techsolutions Private Limited, the company is developing software to automate and streamline manufacturing operations.

The global market for precision engineered goods is expected to reach USD 395.4 billion by CY2028.


Key Highlights

Strong relationships with marquee customers
Global delivery model with export-driven supply chain expertise
Manufacturing facilities offering scale and flexibility
Diversified product portfolio

Objects of the Issue

Repayment/pre-payment of borrowings (Rs. 50 Cr.)
Setting up Proposed Facility 1 (Rs. 132.84 Cr.)
Setting up Proposed Facility 2 (Rs. 100.71 Cr.)
Solar panels & new machinery for Existing Facility 2 (Rs. 18.7 Cr.)
General corporate purposes

The company will not receive proceeds from the Offer for Sale aggregating Rs. 165 Cr.


Financial Performance & Key Metrics

Revenue CAGR (FY23-25): 39%
EBITDA CAGR (FY23-25): 36%
PAT CAGR (FY23-25): 16%
ROE (FY25): 21.55%
ROCE (FY25): 16.08%
Net Debt to Equity: 1.6x (FY25)
EBITDA Margin: 30.72%
PAT Margin: 11.74% (as of 30 Sep 2025)

The company reported heavy loss in FY24 due to new plant installation.


At upper price band of Rs. 227, post issue market capitalisation is approximately Rs. 2,807 Cr.


Valuation Analysis

The issue appears fully priced at current levels.

P/BV: 10.29 (NAV Rs. 22.07 as of Sep 30, 2025)
P/E (annualised FY26): ~50x

Risks to Consider

Capital intensive business model
High debt levels
Execution risk
Intense competition
High customer concentration
Over-reliance on exports
Working capital and financial management risks
Cyclical industry risk
Foreign exchange fluctuations
Tariffs or anti-outsourcing legislation risk

Our View – Should You Apply?

Omnitech Engineering operates in a growing precision engineering market with strong customer relationships and a robust order book.

However, considering high valuation, indebtedness and sector risks, the issue may be suitable for high-risk investors with a long-term investment horizon.


Frequently Asked Questions (FAQs)

What industry does Omnitech Engineering operate in?
The company operates in the precision engineered components manufacturing industry serving global industrial sectors.

What is the IPO lot size?
The lot size is 66 equity shares and in multiples thereafter.

Is the IPO suitable for conservative investors?
Given valuation levels and business risks, it may be more suitable for investors with higher risk appetite.


Brief Financials

PARTICULARS ₹ in Million
As at
Sep 30, 2025
FY ‘25 FY ‘24 FY ‘23
Total Income 2,366.92 3,497.06 1,819.52 1,837.13
Total Expenditure 1,998.77 2,935.19 1,504.66 1,397.47
EBITDA 700.84 1,176.47 649.36 634.56
Profit/(Loss) before Tax 368.15 561.87 314.86 439.66
Profit/(Loss) after Tax 277.79 438.65 189.08 322.92
E.P.S. (Diluted) 2.64* 4.26 1.89 3.23
P/E (x) (Diluted) - 64 - -
RONW (%) 11.96* 21.46 23.99 53.91
*Not annualised

PRICE CHART (@ ₹ 227) (Retail Category)

LOT SIZE
Amount
66 14,982
132 29,964
198 44,946
264 59,928
330 74,910
396 89,892
462 104,874
528 119,856
594 134,838
660 149,820
726 164,802
792 179,784
858 194,766

HNI Payment Chart

Category
No. of Shares Minimum Bid Lot Amount (Rs.)
Small HNI 924 209,748
Big HNI 4,422 1,003,794

Indicative Time Table

Tentative Events
Indicative Dates
Finalisation of Basis of Allotment with the Designated Stock Exchange 2/3/2026
Initiation of refunds/unblocking ASBA Fund 4/3/2026
Credit of Equity Shares to demat accounts of Allottees 4/3/2026
Commencement of trading of the Equity Shares on the Stock Exchanges 5/3/2026




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The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.


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