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Growth story or overpriced wager?

Summary: Omnitech Engineering, a high-precision part producer, opened its IPO on February 25, 2026 and can shut on February 27, 2026. Here’s what it is best to know in regards to the firm earlier than investing choice.

Omnitech Engineering IPO will likely be open for subscription from February 25, 2026, till February 27, 2026. The firm is elevating Rs 418 crore in recent proceeds with an offer-for-sale part of Rs 165 crore.

Below is an evaluation of the corporate’s strengths, weaknesses, financials and valuations to assist buyers determine whether or not the IPO (preliminary public providing) is price subscribing to or not.

What the corporate does

Omnitech Engineering manufactures high-precision parts for safety-critical industrial functions. Simply put, they make important steel elements like heavy-duty gears, joints, and structural pins that maintain huge industrial machines working safely. Their manufacturing scale spans elements weighing simply 3 grams to heavy parts as giant as 500 kilograms.

The firm is export-facing with practically 79 per cent of income within the first half of FY26 coming from abroad, with the US being its largest market, making up 59 per cent of income.

Its parts cater to many sectors. The vitality sector is its largest income contributor that made up 42 per cent of FY25 gross sales. For vitality prospects, it produces heavy-duty grips used on drilling rigs and significant parts that enable wind generators to rotate easily.

The movement management and automation section, which made up 36 per cent of income, caters to robotic tools. Third, industrial tools techniques (20 per cent of income) embody heavy drill bits for mining and thick steel plates meant to resist intense stress inside fuel valves.

FY25 recap and future capex plans

The firm is at present within the midst of an aggressive, multi-year capital expenditure (capex) cycle. It spent Rs 218 crore over the past two years, which included spending on a brand new facility. From the IPO proceeds, practically Rs 234 crore will likely be used to arrange two new manufacturing items in Rajkot, Gujarat, pushing its annualised capability from 2.4 million to three.3 million hours. Its machining capability utilisation is at a wholesome 71–74 per cent.

After a sober FY24, the place preliminary prices of the capex, like increased depreciation and curiosity, suppressed the corporate’s backside line, FY25 has seen a significant rebound. Revenue practically doubled because the newly constructed items cleared prolonged buyer approvals and commenced fulfilling a large surge in orders.

Meanwhile, revenue surged 1.3 occasions because of working leverage lastly kicking in. The firm additionally shifted in the direction of mid- and large-sized machines, which earn mor

Suhas
Suhashttps://onlinemaharashtra.com/
Suhas Bhokare is a journalist covering News for https://onlinemaharashtra.com/
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