Omnitech Engineering IPO: Check IPO Date, Lot Size, Price & Details

Introduction:

The company is one of the key manufacturers of high precision engineered components and assemblies supplying to global customers across industries such as energy, motion control & automation, industrial equipment systems, metal forming and other diversified industrial applications. With 19 years of experience, it manufacture highly engineered precision machined components and assemblies that are majorly utilized towards safety critical applications.

Its products find applications in industries such as (i) Energy which includes supplies with end application primarily in oil & gas, wind energy and power sector; (ii) Motion Control and Automation which primarily includes supplies with electro-mechanical systems to end applications primarily in drives and motors, flow control, motion control, sensors, automation and hydraulics; (iii) Industrial Equipment Systems which includes supplies with end application primarily in aerospace ground support equipment, construction equipment, machineries for diverse applications, and components for winches and hoists; and (iv) Others which includes supplies with end application primarily in metal forming and other diversified industrial applications.

During the 6 months ended September 30, 2025 and the last 3 fiscals, it supplied high precision engineered components and assemblies to 256 customers across 24 countries including United States of America, India, United Arab Emirates, Germany, Bulgaria, Sweden, United Kingdom, France, Australia and Canada with majority of its revenue from operations being derived from outside India. Over the past 19 years it has built an understanding of various facets of manufacturing and the company, through its Subsidiary, Novatro Techsolutions Private Limited, are developing software which seeks to automate and streamline the operations of manufacturing industries. As of September 30, 2025, its Subsidiary, Novatro Techsolutions Private Limited, had a team of 15 employees who are part of developing the software.

IPO Details:

Objectives of Issue:

• Repayment and/ or pre-payment, in full or in part, of certain outstanding borrowings availed by the Company
• Setting up New Projects
• Funding towards Capital Expenditure at Existing Facility
• General Corporate Purpose       

Key Strengths:

• Diversified Product Portfolio- The company offer its customers a diverse range of products across raw materials, dimensions, manufacturing processes that the components need to go through, levels of assembly and packaging and dispatch options. Its diverse machining capabilities enables it to handle a variety of raw materials including carbon steel, alloy steel, stainless steel, nickel alloys, titanium, aluminium and specialized alloys in bar form, tubes, forgings, castings and in other forms. With 19 years of expertise and its product development capabilities, it provide customized components tailored to meet the specific needs of its customers. While its customers provide it with design and specifications for products and assemblies, it is responsible for designing manufacturing processes which help in enhancing efficiency, reducing costs, and improving quality within its manufacturing operations.
• Growing Order Book – The company revenue over the last 3 years have been impressive as it cracked a CAGR of 39% over the last 3 years .However company’s order book has clocked a CAGR of 293 % with an order to revenue ratio of more than 550% showing company’s demand for its products.
• Diversified Segment- The company generates revenue from three segments namely the energy , motion control and automation, Industrial segments. Company has ensured that no single segment dominates revenue profile of the company thereby creating huge dependence on any particular segment for revenue generation and has ensured revenue diversification

Risks:

• Concentrated Manufacturing Facility – The existing manufacturing operations are based out of its 3 Manufacturing Facilities in Rajkot, Gujarat and its Proposed Facilities are also proposed to be located in Rajkot, Gujarat. The concentration of its Manufacturing Facilities and operations in a single location in Gujarat subjects it to various risks, including vulnerability to change of policies, laws and regulations or the political, availability of skilled manpower, disruption or disturbance in surrounding areas and natural calamities, any of which, could adversely affect its business, financial condition, results of operations, cash flows and prospects.
• Higher Exposure to US - Its business may be impacted by regulatory changes, evolving customer preferences, and broader market dynamics related to outsourcing of manufacturing activities. Company generates more than 50% of its sales from USA which creates a huge dependency on USA. Periodic efforts, particularly in the United States of America and certain other jurisdictions, to introduce or expand tariffs on import of manufactured goods and incentives for companies looking to set-up manufacturing facilities within the respective countries driven by concerns about domestic employment could limit its ability to serve customers in those regions in a commercially viable manner.
• Concentrated Customer Profile- The company generate a significant revenue from its top 10 customers, and in the 6 months ended September 30, 2025, Fiscals 2025, 2024 and 2023, its revenue from top 10 customers were 56.04%, 47.87%, 61.27% and 68.88%, respectively, of its revenue from sale of products and services. The loss of such customers or a significant reduction in its revenue from such customers will have a material adverse impact on its business.

Financial Snapshot:

Peers Comparision

Conclusion

The Company operates in the critical and precision components segment, and its consistent revenue growth along with a healthy expansion in the order book reflects strong execution capabilities as well as sustained product demand.

From a financial comparison perspective, a strict like-to-like benchmarking is challenging due to the diversified nature of its peers. However, the Company’s revenue growth surpasses the peer average. Its EBITDA margins are also superior to the industry average, indicating operational efficiency. That said, elevated interest costs have resulted in PAT margins being marginally lower than the industry average. Importantly, the Company’s ROCE and ROE have remained above the industry average over the past three years, demonstrating efficient capital deployment. On the leverage front, the Debt-to-Equity ratio is higher than the industry average, which remains a key monitorable.

In terms of valuation, the wide variation among peers results in a high industry average P/E multiple of ~185x, whereas the Company is offered at ~54x pre-IPO, positioning it at a relatively reasonable valuation.

Considering its robust financial performance, strong order visibility, and favorable demand outlook, the issue appears suitable for subscription from a long-term investment perspective.

IPO Allotment

Find out the allotment status for the Omnitech Engineering IPO by checking its registrar's page.