Unimech Aerospace IPO Listing: Shares of Unimech Aerospace had a successful entry in the domestic market today. Its IPO received overall bids of more than 184 times. Shares have been issued under the IPO at a price of Rs 785. Today it has entered at Rs 1491.00 on BSE and Rs 1,460.00 on NSE, which means IPO investors got a listing gain of 89.94 percent (Unimech Aerospace Listing Gain). However, the joy of IPO investors soon faded as the shares crashed. It fell to Rs 1436.45 (Unimech Aerospace Share Price) on BSE, which means IPO investors are now making 82.99 percent profit.
Unimech Aerospace IPO got strong response
Unimech Aerospace’s ₹500 crore IPO was open for subscription from December 23-26. This IPO received a good response from investors and overall it was subscribed 184.34 times. In this, the portion reserved for Qualified Institutional Buyers (QIB) was 334.68 times, the portion for Non-Institutional Investors (NII) was 277.55 times, the portion for retail investors was 59.19 times and the portion for employees was 100.95 times.
Under this IPO, new shares worth Rs 250 crore have been issued. Apart from this, 31,84,712 shares with face value of Rs 5 have been sold under the offer for sale window. The shareholders who sold the shares have received the money from the offer for sale. 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.
What was the brokerage stance on the issue?
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 had 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 had advised to subscribe to it. Bajaj Broking had also given it a subscribe rating for long term.
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