Unimech Aerospace and Manufacturing Ltd, a Bengaluru-based high-precision engineering solutions company, has launched its Initial Public Offering (IPO) today, December 23, 2024. The IPO is scheduled to close on December 26, 2024.
IPO Details:
- Issue Size: The total issue size is ₹500 crore, comprising a fresh issue of ₹250 crore and an offer for sale (OFS) of ₹250 crore by existing shareholders.
- Price Band: The price band for the IPO is set between ₹745 and ₹785 per equity share.
- Lot Size: Investors can bid for a minimum of 19 shares and in multiples thereof.
- Allocation: The issue is allocated as follows: 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Individual Investors (RIIs).
Company Overview:
Unimech Aerospace specializes in manufacturing complex tooling, mechanical assemblies, electro-mechanical turnkey systems, and precision components for industries such as aerospace, defense, energy, and semiconductors. Their product portfolio includes engine lifting and balancing beams, assembly and calibration tooling, ground support equipment, and airframe assembly platforms.
Financial Performance:
In the fiscal year 2023-2024, the company reported a net profit of ₹58.1 crore, a significant increase from ₹22.8 crore in the previous fiscal year. Revenue also saw substantial growth, rising from ₹94.2 crore in FY23 to ₹208.8 crore in FY24.
Subscription Status:
As of 10:15 AM on December 23, 2024, the IPO has been subscribed 6%, with the retail portion subscribed 8% and the non-institutional investors’ portion subscribed 9%. The QIB portion is yet to receive subscriptions.
Unimech Aerospace and Manufacturing Ltd Grey Market Premium (GMP):
The IPO is commanding a grey market premium of ₹480, indicating a potential listing price of ₹1,265 per share, which is approximately 61.15% higher than the upper end of the price band.
Key Dates:
- Issue Opens: December 23, 2024
- Issue Closes: December 26, 2024
- Allotment Finalization: Expected by December 29, 2024
- Initiation of Refunds: Expected by December 30, 2024
- Credit of Shares to Demat Accounts: Expected by December 31, 2024
- Listing Date: Expected on January 2, 2025
Unimech Aerospace and Manufacturing IPO share price
The Unimech Aerospace and Manufacturing IPO has a price band set between ₹745 and ₹785 per equity share. Investors can bid within this range based on their valuation preference and market sentiments.
Objective of the IPO
- Expansion: To acquire new machinery and equipment for enhancing production capacity.
- Debt Repayment: Reduce financial leverage for improved stability.
- Working Capital: Strengthen the operational liquidity of the business.
- General Corporate Purposes: To fund everyday operations and other corporate requirements.
Financial Highlights
| Metric | FY 2023 | FY 2024 |
| Revenue | ₹94.2 crore | ₹208.8 crore |
| Net Profit | ₹22.8 crore | ₹58.1 crore |
| Profit Margin | 24.2% | 27.8% |
| Debt-to-Equity Ratio | 0.54 | 0.38 |
IPO Subscription Details
Day 1 (December 23, 2024):
- Retail Investors: 8%
- Non-Institutional Investors: 9%
- Qualified Institutional Buyers: 0%
Strengths
Diverse and reputed client base in critical industries.
Robust financial performance with significant revenue and profit growth.
Strategic investments in advanced technology and capacity expansion.
Risks
Heavy dependence on the aerospace and defense sectors.
Volatility in raw material prices could affect margins.
Intense competition from global and domestic players.
Should You Invest?
- The company’s strong financial growth and market leadership.
- Grey Market Premium as a potential indicator of listing gains.
- Risks related to industry dependency and market conditions.
It is advisable to consult with a financial advisor before making investment decisions.
Who is the Unimech Aerospace and Manufacturing Founder?
Unimech Aerospace and Manufacturing Ltd was founded in 2016 by Anil Kumar Puthan, who serves as the Chairman and Managing Director. Under his leadership, the company has become a prominent provider of high-precision engineering solutions for industries such as aerospace, defense, energy, and semiconductors.
Anil Kumar Puthan manages the end-to-end aspects of design, manufacturing, and execution of large-scale projects at Unimech. During his career as an engineer, he went to undertake multiple, complex organizations, including handling 50 engineers as a Project Manager in QuEST Global. Anil has a keen eye for details. No matter how complex the problem is or what specific tool or machine is required, he works together with his engineers to put together the concept, set up systems, work on complex engineering design, and optimize project and performance management efficiently.
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