Day 2: Unimech Aerospace IPO on Cloud 9

Unimech’s product range includes engine lifting and balancing beams, assembly, disassembly and calibration tooling, ground support equipment and airframe assembly platforms
MUMBAI, Dec 24 (The CONNECT) – The Initial Public Offering of Unimech Aerospace and Manufacturing Limited was subscribed 9.09 times today, the second day of bidding.
The issue received bids of 4,27,66,226 shares against the offered 47,04,028 equity shares, at a price band of ₹745-785, according to the data available on the stock exchanges.
Retail Portion and Non-Institutional Investors Portion were subscribed 15.56 times and 12.07 times respectively, whereas Qualified Institutional Buyer Portion is still to see traction. Employee Portion was subscribed 4.64 times.
The issue will close on Thursday, December 26, 2024.
Unimech Aerospace and Manufacturing Ltd raised Rs 149.55 crores from anchor investors on Friday last. 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.
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.