Unimech Aerospace and Manufacturing IPO: Key details, price band, important Dates and Subscription Status

Unimech Aerospace and Manufacturing IPO: Unimech Aerospace and Manufacturing Limited, a prominent name in the aerospace and precision manufacturing industry, has announced its Initial Public Offering (IPO). This IPO presents a significant opportunity for investors looking to invest in a high-potential sector. Below are all the important details regarding the Unimech Aerospace IPO.

IPO Details

Issue Size: The IPO will comprise a total issue of ₹500 crores, including ₹250 crores as a fresh issue and ₹250 crores as an offer for sale by existing shareholders.

Price Band: ₹745 and ₹785 for each equity share.

Face Value: ₹5 per equity share.

Lot Size: Each lot consists of 19 shares, requiring a minimum application amount of ₹14,915.

Listing: The shares will be listed on both BSE and NSE, with the listing date expected on December 31, 2024.

Timeline of the IPO

Opening Date: December 23, 2024

Closing Date: December 26, 2024

Basis of Allotment: December 27, 2024

Refund Initiation: December 30, 2024

Demat Credit of Shares: December 30, 2024

Listing Date: December 31, 2024

About Unimech Aerospace and Manufacturing

Unimech Aerospace and Manufacturing IPO: Established in 2016, Unimech Aerospace and Manufacturing Limited is a leading provider of engineering solutions specializing in complex tooling, mechanical assemblies, electromechanical turnkey systems, and precision components for the aerospace, defense, energy, and semiconductor sectors. The company operates cutting-edge manufacturing facilities in Bengaluru and serves global Original Equipment Manufacturers (OEMs) and their licensees.

Financial Performance

Unimech Aerospace has demonstrated consistent growth in recent years:

FY 2022: Revenue of ₹36.35 crores; Net Profit of ₹3.39 crores.

FY 2023: Revenue of ₹94.17 crores; Net Profit of ₹22.81 crores.

FY 2024: Revenue of ₹208.78 crores; Net Profit of ₹58.13 crores.

Objectives of the IPO

Unimech Aerospace and Manufacturing IPO: The funds raised through the IPO will be allocated for the following purposes:

1. Funding capital expenditure by purchasing machinery and equipment.

2. Meeting working capital requirements.

3. Investing in subsidiaries for machinery purchases, working capital funding, and repayment of certain borrowings.

4. General corporate purposes.

Reservation for Investors

Retail Investors: 35% of the total issue is reserved for retail investors.

Qualified Institutional Buyers (QIBs): 50% of the issue is reserved.

Non-Institutional Investors (NIIs): 15% of the issue is reserved.

Industry Outlook

Unimech Aerospace and Manufacturing IPO: The aerospace and precision manufacturing sectors are poised for exponential growth, driven by rising demand for commercial aircraft, advancements in defense technology, and increased automation in manufacturing. Unimech Aerospace, with its innovative solutions and diversified client base, is well-positioned to leverage these trends.

Government initiatives like “Make in India” and policies supporting domestic manufacturing further create a favorable environment for companies like Unimech.

Key Considerations for Investors

Strengths:

1. Established Market Position: A proven track record in delivering high-quality components for critical industries like aerospace and defense.

2. Strong Financial Growth: Consistent improvement in revenue and profitability metrics.

3. Expansion Opportunities: Funds from the IPO are expected to accelerate growth plans and strengthen market presence.

Risks:

1. Regulatory Challenges: Aerospace and defense are highly regulated sectors, which could pose compliance risks.

2. Market Volatility: Economic slowdowns or geopolitical tensions can impact industry growth and stock performance.

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