Unimech Aerospace IPO Opens on Dec 23: Aims to Raise ₹500 Crores through Equity Issue
Bengaluru-Based Aerospace Manufacturer Unimech Targets Global Expansion with Upcoming IPO
Unimech Aerospace IPO: Key Details and Insights for Investors
IPO to Raise ₹500 Crores; Opens on December 23, 2024
- Unimech Aerospace IPO Review: Growth Opportunities
The aerospace industry is experiencing significant growth, particularly in the Asia-Pacific region, which is expected to add approximately 11,925 aircraft by 2042 according to market reports. Additionally, the increasing focus on renewable energy sources presents further opportunities for Unimech’s products in the energy sector. With India’s emerging role in semiconductor manufacturing and the government’s push for nuclear power generation—expected to add 8,700 MW of capacity—Unimech is strategically positioned to capitalize on these trends.
BILKULONLINE
Ahmedabad, Dec 19: Bengaluru-based Unimech Aerospace and Manufacturing Limited, a leading engineering solutions provider, is set to launch its Initial Public Offering (IPO) from December 23 to December 26, 2024.
The IPO aims to raise ₹500 crores through a combination of fresh issue and an offer for sale. The listing is scheduled for December 30, 2024, on the BSE and NSE.
Key Details of the IPO
Price Band and Lot Size
Price Band: ₹745 – ₹785 per equity share, with a face value of ₹5.
Minimum Bid Lot: 19 equity shares and multiples thereof.
Application Amount: Minimum investment of ₹14,915 for 19 shares.
Offer Size and Allocation
Fresh Issue: ₹250 crores.
Offer for Sale: Up to 31,84,712 equity shares.
Investor Quota: Retail investors (35%), Qualified Institutional Buyers (50%), and High Net-worth Individuals (15%).
Important Dates
IPO Opens: December 23, 2024.
IPO Closes: December 26, 2024.
Allotment Finalization: December 27, 2024.
Listing Date: December 30, 2024.
Financial Performance and Growth Trajectory
Unimech Aerospace has shown strong financial growth in recent years. The company’s revenue increased from ₹94.93 crores in 2023 to ₹213.79 crores in 2024, reflecting a 125% growth. Net profit rose from ₹22.81 crores in 2023 to ₹58.13 crores in 2024, a 154% increase.
Founded in 2016, Unimech specializes in manufacturing complex products for industries including aerospace, defense, energy, and semiconductors. The company’s offerings include machining, fabrication, assembly, and testing, catering to global markets such as the USA, Germany, and the UK.
Objects of the Issue
The funds raised will be utilized for:
Expanding capital expenditure through machinery and equipment purchases.
Meeting the company’s working capital requirements.
Investing in its material subsidiary for machinery purchase, working capital, and debt repayment.
The leadership includes:
Anil Kumar Puthan: Chairman and Managing Director.
Ramakrishna Kamojhala: Whole-Time Director and CFO.
Mani P: Whole-Time Director (Operations).
Preetham SV: Whole-Time Director (People & Key Accounts).
Rajanikanth Balaraman: Whole-Time Director (IT & Business Development).
Investment Recommendation
With a strong financial track record and ambitious growth plans, Unimech Aerospace’s IPO offers an attractive opportunity for long-term investors. Its strategic presence in global markets and diversified product offerings strengthen its market position.
Merchant Bankers for the IPO are Anand Rathi Securities Limited and Equirus Capital Private Limited.
Disclaimer: Readers are advised to carefully study the IPO prospectus and consult their financial advisors before making any investment decisions.
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