Omnitech Engineering turns into another weak market debut; stock lists at 11% disocunt

Extending the series of weak stock market debuts, shares of Omnitech Engineering made a muted listing on Dalal Street debut on Thursday, March 05 as the engineering solutions player was listed at Rs 202 on NSE, a discount of 11.01 per cent over its issue price of Rs 227. Similarly, the stock kicked-off its maiden trading session with a discount of 9.69 per cent at Rs 205 on BSE.

The listing of Omnitech Engineering has been below the expectations. Ahead of its debut, the grey market premium (GMP) of Omnitech Engineering stood at zero, while the stock was trading at a discount of Rs 10 apiece in the grey market a couple of days ago. As of the listing price, investors made a loss of Rs 1,650 per lot.

The IPO of Omnitech Engineering was sold between February 25 and February 27. It offered its shares in the price band of Rs 216-227 per share with a lot size of 66 shares. The company raised a total of Rs 583 crore from its IPO, which included a fresh share sale of Rs 418 crore and an offer-for-sale (OFS) of up to 72,68,722 equity shares worth Rs 165 crore.

The issue was overall booked subscribed 1.14 times, attracting bids worth over Rs 490 crore via nearly 38,000 applications. The portion for qualified institutional bidders (QIBs) was booked 2.86 times. However, the quotas for non-institutional investors (NIIs) and retail investors were under-subscribed at 73 per cent and 33 per cent, respectively.

Rajkot-based Omnitech Engineering is a manufacturing and engineering solutions company, specializing in providing precision-engineered components, turnkey industrial automation solutions, and customized mechanical systems for various industries. It is known for expertise in mechanical design, fabrication, assembly, and integration of high-performance equipment.

Brokerage firms were mostly positive on the issue, suggesting to subscribe to it for long-term. Equirus Capital and ICICI Securities were the book running lead managers of Omnitech Engineering IPO and MUFG Intime India is the registrar of the issue.