Unimech Aerospace IPO Opens Today: Key Details and Recommendations
Unimech Aerospace and Manufacturing, a leading player in aerospace and defense engineering solutions, has opened its initial public offering (IPO) for public subscription today, December 23, 2024. The company plans to raise ₹500 crore through a combination of a fresh issue and an offer for sale (OFS).
The fresh issue involves the sale of 63,69,424 shares, while the OFS will see 31,84,712 shares being sold by existing promoters, including Ramakrishna Kamojhala, Mani P, Rajanikanth Balaraman, Preetham S V, and Rasmi Anil Kumar.
Unimech Aerospace IPO Price Band and Lot Size
The company has set a price band of ₹745-785 per share, with a lot size of 19 shares. Retail investors will need to invest a minimum of ₹14,915 for one lot. For maximum investment, retail investors can bid for 13 lots (247 shares), requiring ₹1,93,895.
Grey Market Premium (GMP) Performance
Ahead of its launch, Unimech Aerospace’s unlisted shares have been trading at a ₹1,265 premium in the grey market, reflecting a 61.15% rise over the IPO’s upper price band of ₹785, signaling strong demand and market confidence.
IPO Allotment and Listing Timeline
- Subscription Window: December 23-26, 2024
- Basis of Allotment: December 27, 2024
- Shares Credited to Demat Accounts: December 30, 2024
- Listing on BSE & NSE: December 31, 2024
Use of IPO Proceeds
Unimech Aerospace plans to utilize the proceeds from the fresh issue for:
- Capital expenditure to expand manufacturing capacity through new machinery and equipment.
- Working capital requirements for its operations and subsidiary.
- Debt repayment or prepayment for its subsidiary.
- General corporate purposes.
The company clarified that it will not receive any funds from the OFS, as those proceeds will go to the selling shareholders after deducting expenses and taxes.
Brokerage Recommendations
Several brokerages have given a ‘Subscribe’ rating for Unimech Aerospace’s IPO, highlighting its strong financial performance, market position, and growth potential.
- BP Wealth:
- P/E ratio of 59.3x based on FY24 earnings, lower than peers.
- Noted industry growth, financial strength, and attractive valuation.
- InCred Equities:
- Focused on Unimech’s presence in niche aerospace and defense sectors with high entry barriers.
- Highlighted its strong return ratios and margin profile.
- Ventura Securities:
- Emphasized Unimech’s cutting-edge manufacturing capabilities, experienced management, and strategic location in Bengaluru.
- Mentioned its ISO-certified facilities and skilled workforce.
Financial Performance Highlights
Unimech Aerospace has delivered robust growth, with:
- Revenue CAGR of 79% (FY22-FY24).
- EBITDA CAGR of 117% during the same period.
- PAT CAGR of 158% (FY22-FY24).
- EBITDA margin increased from 21.3% in FY22 to 37.9% in FY24.
- RoE and RoCE: Both stood at 54% in FY24.
About Unimech Aerospace and Manufacturing
Incorporated in 2016, Unimech Aerospace specializes in advanced engineering solutions, offering build-to-print and build-to-specification services. Their expertise spans industries like aerospace, defense, energy, and semiconductors. The company’s facilities in Bengaluru, covering 1,20,000 sq. ft., are equipped to handle machining, fabrication, assembly, testing, and product development.
With a strong vendor network and digital-first approach, Unimech Aerospace is positioned as a leader in delivering high-complexity, low-volume solutions tailored to client needs.
