Unimech Aerospace and Manufacturing IPO subscribed 3.82 times on Day 1

The Initial Public Offering of Unimech Aerospace and Manufacturing Limited was subscribed 3.82 times on the first day of bidding.

The issue received bids of 1,79,56,102 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 4.46 times and 4.03 times respectively, whereas Qualified Institutional Buyer Portion were subscribed 2.49 times. Employee Portion was subscribed 6.48 times. The issue kicked off for subscription on Monday, December 23, 2024, and will close on Thursday, December 26, 2024.

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.

The table below shows subscription data for all the categories of investors: