Shares of Omnitech Engineering had a lackluster start on the Indian stock exchanges, opening at Rs 205 on the Bombay Stock Exchange (BSE) and Rs 202 on the National Stock Exchange of India, both below the IPO price of Rs 227 per share. Despite the initial dip, the stock saw a rise of over 9% to reach Rs 224 on the BSE, although it still remained under the IPO price.
Market expectations were not met as the shares listed at a discount of around 10-11% compared to the grey market premium forecast. Omnitech Engineering, a manufacturer of precision components for global OEMs with a significant export revenue, plans to utilize the IPO funds for new manufacturing facilities, solar equipment investments, and debt repayment.
Analysts caution about the company’s high borrowings and competition from industry peers like Azad Engineering, MTAR Technologies, and PTC Industries, which could impact its near-term performance. The IPO, open for subscription from February 25 to February 27 with a price band of Rs 216 to Rs 227 per share, saw an overall subscription of 1.14 times, with varying levels of participation from retail, non-institutional, and qualified institutional buyers.
