The Initial Public Offering of Unimech Aerospace and Manufacturing enters day 2 with strong subscription, as all category of investors poured in money. The IPO was subscribed 3.82 times at the end of Day 1.
The IPO of engineering solutions company Unimech Aerospace and Manufacturing that opened for public subscription on Monday was targeting ₹500 crore at a price band of ₹745-785. The market lot is 19 shares.
The IPO comprised ₹250 crore worth fresh issue and an equal amount of offer-for-sale by promoters and selling shareholders. Among the sellers are ₹45 crore worth shares by Ramakrishna Kamojhala, up to ₹45 crore by Mani P, up to ₹45 crore by Rajanikanth Balaraman and up to ₹30 crore by Preetham S V. Rasmi Anil Kumar, the promoter group, will offload stocks worth ₹85 crore.
The issue received bids of 1.79 crore shares against the offered 47.04 lakh shares. Retail Portion and HNI portions were subscribed 4.46 times and 4.03 times respectively, whereas Qualified Institutional Buyer quota was subscribed 2.49 times. Employee Portion was subscribed 6.48 times. The issue will close on Thursday. Employee quota (20,134 shares) received bids for 6.48 times.
A day before the opening of the issue, Unimech Aerospace and Manufacturing Ltd raised Rs 149.55 crores from anchor investors.
Foreign and Domestic Institutions who participated in the anchor included Goldman Sachs India Equity Portfolio, ICICI Prudential Transportation and Logistics Fund, Tata India Innovation Fund, Motilal Oswal, Edelweiss Trusteeship, Ashoka India Investment Fund, Abakkus Diversified Alpha Fund-2, VQ Fastercap Fund HSBC Flexi Cap, Copthall Mauritius, Clarus Capital etc.
Leading brokerage firms like Nirmal Bang, Anand Rathi, SBI Securities, KR Choksey, Ajcon Global, Arihant Capital, BP Wealth, StoxBox, Eureka Securities, GEPL Capital, Canara Bank Securities, Reliance Sercurities, Marwadi Financial Services, Master Trust Capital, SMIFS, Swastika Investmart, IndSec Securities, and Ventura Securities, have given a “Subscribe” rating to the issue highlighting the company’s strong financial performance, including a 140% revenue CAGR (FY22-FY24), robust margins, and reasonable valuation at a P/E of 51.6x to 69x.
The company’s niche focus on aerospace and defense, export-driven model, and planned capacity expansions position it well for growth in high-potential sectors like semiconductors and renewable energy, making it a promising long-term investment.
Four Bridge Capital has assisted Unimech Aerospace and Manufacturing Ltd. on their IPO and FBC have supported throughout the process.
Anand Rathi Advisors Limited, and Equirus Capital Private Limited are the book-running lead managers, and KFin Technologies Limited is the registrar of the issue.
Company Information
Incorporated in the year 2016, Unimech Aerospace and Manufacturing Limited is an engineering solutions company specializing in manufacturing and supply of critical parts such as aero tooling, ground support equipment, electro-mechanical sub-assemblies and other precision engineered components for aerospace, defence, energy, and semiconductor industries.
The company possess “build to print” capabilities and “build to specifications” capabilities and supply high precision and critical components to major OEMs and their licensees around the globe.
Unimech’s product range includes engine lifting and balancing beams, assembly, disassembly and calibration tooling, ground support equipment, airframe assembly platforms, engine transportation stands, mechanical and electro-mechanical turnkey systems, as well as precision components.
