Omnitech Engineering’s disappointing debut in the high-precision stock market, investors in losses

New Delhi. Shares of Omnitech Engineering, a company that manufactures and supplies high-precision engineered components and assemblies, disappointed its IPO investors by making a discount entry in the stock market today. Under the IPO, the company’s shares were issued at a price of Rs 227.
Today its listing on BSE was at Rs 205 with 9.70 percent discount and on NSE it was listed at Rs 202 with 11 percent discount. After getting buying support after listing, this share reached the level of Rs 224.70, whereas due to selling pressure, it fell back to the level of Rs 202. After the entire day’s trading, the company’s shares closed at the level of Rs 204.93. In this way, the company’s IPO investors suffered a loss of Rs 22.07 per share i.e. 9.72 percent in the first day of trading.

Omnitech Engineering’s Rs 583 crore IPO was open for subscription between February 25 and 27. This IPO received a tepid response from investors, due to which it was subscribed 1.20 times overall. Of these, the reserve portion for Qualified Institutional Buyers (QIB) was subscribed three times. The reserve portion for non-institutional investors (NIIs) received only 0.77 times subscription. Similarly, the reserve portion for retail investors could be subscribed only 0.35 times. Under this IPO, 2,56,85,062 shares with face value of Rs 5 have been issued. Of these, 1,84,16,340 new shares have been issued, while 72,68,722 shares have been sold through the offer for sale window. The company will use the money raised through the IPO to reduce the burden of old debt, meet working capital requirements and for general corporate purposes.

Talking about the company’s financial health, as per the claims made in the Draft Red Herring Prospectus (DRHP) filed with the capital markets regulator SEBI, its financial health has been fluctuating. In the financial year 2022-23, the company had a net profit of Rs 32.29 crore, which decreased to Rs 18.91 crore in the next financial year 2023-24. In the next financial year 2024-25, the company’s net profit jumped to the level of Rs 43.87 crore. In the current financial year from April to September 30, 2025, the company has made a net profit of Rs 27.78 crore.

During this period, the company’s revenue receipts also generally increased. It received a total revenue of Rs 183.71 crore in the financial year 2022-23, which declined slightly to Rs 181.95 crore in the financial year 2023-24 and jumped to Rs 349.71 crore in the financial year 2024-25. In the current financial year from April to September 30, 2025, the company has received a revenue of Rs 236.69 crore. During this period the company’s debt continued to increase. At the end of the financial year 2022-23, the company had a debt burden of Rs 88.81 crore, which increased to Rs 230.49 crore in the financial year 2023-24 and jumped to Rs 330.63 crore in the financial year 2024-25. In the current financial year, by September 30, 2025, the debt burden on the company had increased to the level of Rs 382.91 crore.