Omnitech Engineering Ltd. (Mainboard)

Incorporated as a manufacturing and engineering solutions company, Omnitech Engineering specializes in precision-engineered components, turnkey industrial automation solutions and customized mechanical systems.The company serves diverse sectors including automotive, aerospace, pharmaceuticals, food processing and general manufacturing. Key offerings include CNC machining & fabrication, custom tooling & jigs, Special Purpose Machines (SPMs), material handling systems and automation & robotics integration. Supplied high-precision engineered components to 220 customers across 22 countries, including the USA, Germany, UAE, Sweden and Canada in the last three fiscals. Operates two manufacturing facilities in Metoda and Chhapara, Rajkot (Gujarat) equipped with advanced CNC, VMC, TMC and sliding headstock machines. As on April 30, 2025, the company had a strong order book of ₹12,893.36 million, reflecting revenue visibility. IPO proceeds are proposed to be utilised for repayment/prepayment of borrowings (₹140.00 Cr), setting up new projects at Proposed Facility 1 (₹120.65 Cr) and Proposed Facility 2 (₹93.03 Cr), capital expenditure at existing facility (₹15.70 Cr) and general corporate purposes.

Strong relationships with marquee customers: The company has built long-term partnerships across multiple end-user industries, ensuring repeat business and diversified revenue streams.

Global delivery model with export focus: Its supply chain expertise supports export-driven operations, enabling presence across 22 countries and strengthening international credibility.

Scalable manufacturing infrastructure: Two well-equipped facilities provide operational flexibility, production scale and locational advantages in Gujarat’s industrial ecosystem.

High Customer Concentration Risk: The company earns a large portion of its revenues from its top 10 customers — nearly half or more of total revenue in recent years — meaning the loss or reduced business from any of these customers could materially impact its revenue and profitability.

Over-Reliance on Export Markets: A significant majority of the company’s revenue comes from international markets (>70%), exposing the business to global economic shifts, policy changes, trade disruptions or adverse foreign regulations depending on conditions in those markets.

Working Capital and Financial Management Risk: The company’s operations require significant working capital, and if it cannot manage working capital effectively — or raise additional funds if needed — it may face deterioration in operational performance, liquidity, or financial condition.