Unimech Aerospace IPO: The IPO of Unimech Aerospace has opened for subscription today. Before the opening of the IPO, it had raised Rs 149.55 crore from 18 anchor investors. Under Anchorbook, shares worth Rs 79.77 crore have been issued to 10 schemes of 7 domestic mutual funds at a price of Rs 785. When its issue of ₹ 500 crore opened today, it got a tremendous response from investors and it immediately got oversubscribed. Talking about gray market, its shares are at GMP (Grey Market Premium) of Rs 480 i.e. 61.15%. However, according to market experts, investment decisions should be taken on the basis of fundamentals and financials of the company instead of signals received from the gray market.
Details of Unimech Aerospace IPO
You can invest in Unimet Aerospace’s ₹500 crore IPO in the price band of ₹745-₹785 and in lots of 19 shares. This issue opened today on 23rd December and will close on 26th December. 50 per cent of the issue, including 30 per cent to anchor investors, is reserved for qualified institutional buyers (QIBs) while 15 per cent is reserved for non-institutional investors (NIIs) and 35 per cent for retail investors. 19,108 shares are reserved for employees. The allotment of shares under the IPO will be final on December 27. Then there will be entry on BSE and NSE on 31st December. The registrar to the issue is Kfin Tech.
Under this IPO, new shares worth Rs 250 crore will be issued. Apart from this, 31,84,712 shares with face value of Rs 5 will be sold under the offer for sale window. The money from the offer for sale will go to the shareholders selling the shares. The company will use the money raised through new shares for purchase of machinery and equipment, working capital requirements, investment in material subsidiaries, and general corporate purposes. The material subsidiary will use the IPO funds to purchase machinery and equipment, working capital needs and repaying debt.
About Unimech Aerospace
Unimech Aerospace & Manufacturing, established in 2016, manufactures complex tools such as mechanical assemblies, electro-mechanical systems as well as components for aeroengine and airframe production. Talking about the financial health of the company, it has continuously strengthened. In the financial year 2022, it had a net profit of Rs 3.39 crore, which jumped to Rs 22.81 crore in the next financial year 2023 and to Rs 58.13 crore in the financial year 2024. During this period, the company’s revenue increased at a compound growth rate (CAGR) of more than 140 percent annually to Rs 213.79 crore. Talking about the current financial year 2024-25, in the first half April-September 2024, it has achieved a net profit of Rs 38.68 crore and a revenue of Rs 127.58 crore.
To invest money or not?
Unimech Aerospace & Manufacturing’s products are used in the aircraft maintenance, repair and overhaul (MRO), defense, semiconductor and energy industries. Due to strong business growth prospects and cheap valuation compared to peers, most analysts have advised to invest money in it. According to SBI Securities, the issue is at a discount to peers as per the upper price band. Due to this, SBI Securities has advised to subscribe to it. Bajaj Broking has also given it a subscribe rating for long term.
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