The initial share sale of Unimech Aerospace and Manufacturing Ltd. has kicked off for public bidding on Monday, December 23. The company is selling its shares in the range of ₹745-785 apiece, where investors can bid for a minimum of 19 equity shares in one lot and its multiples thereafter.
The ₹500 crore-IPO can be subscribed until Thursday, December 26.
Unimech Aerospace IPO: Review
Nirmal Bang: Subscribe
Unimech Aerospace’s advanced manufacturing capabilities, digital integration, and expertise in high-barrier sectors establish it as a leading player in precision engineering. The company’s strong financial performance is driven by operational efficiency, and global OEM partnerships, the brokerage said.
While its valuation multiples EV/EBITDA of 51 times and P/E (price-to-earnings) of 69 times are more reasonable than its competitors, they reflect its strong fundamentals and growth potential. Thus, the brokerage has recommended subscribing to the issue.
SBI Securities: Subscribe
The brokerage in its note said that the company is looking to expand its designing and manufacturing capabilities through acquisitions (recent acquisition of 30% stake in Dheya Engg). It is also scouting for organic and inorganic opportunities in the USA, which will expand its capacity and ability to service customers in its key market.
“At the upper price band of ₹785, the company is valued at FY25 annualized P/E multiple of 51.6x on post issue capital which is at a discount to its peers. We recommend investors to subscribe to the issue at cut-off price,” it said.
SMIFS Ltd: Subscribe
SMIFS has recommended a subscribe rating to the issue as it said the combination of expanding production capabilities, sector diversification, and regional market penetration positions Unimech for continued growth, making it an attractive player in the aerospace, defense, energy, and precision manufacturing industries amongst peers amongst whom the company has the highest revenue growth and EBITDA margins.
Unimech Aerospace IPO: GMP today
In the grey market, shares of Unimech Aerospace are currently trading at ₹480, which represents a premium of 61.15% over the issue price.
The grey market operates as an unofficial platform where shares are traded prior to opening of the subscription until the listing day. This unregulated market allows investors to speculate on the pricing.
Unimech Aerospace IPO: Anchor investment
The company has garnered ₹149.5 crore anchor investors as it finalised the allocation of 19.05 lakh shares at ₹785 apiece.
Anchor book included names like Goldman Sachs, Ashoka India Equity Investment Trust, Sunil Singhania’s Abakkus Diversified Alpha Fund, Copthall Mauritius, Clarus Capital, and various domestic mutual funds and insurance companies.
Unimech Aerospace IPO: Other details
The IPO of Unimech Aerospace includes a fresh shares sale of ₹250 and an offer-for-sale (OFS) of up to 31.82 lakh equity shares amounting to ₹250 crore.
The company has reserved shares worth ₹1.5 crore for the eligible employees of the company. Of the net offer, 50 per cent shares are reserved for qualified institutional bidders, while non-institutional investors will have 15 per cent of the allocation. Retail investors will get the remaining 35 per cent of the net issue.
Proceeds from the issue will be used towards funding purchase of machineries and equipment; funding working capital requirements; repayment / prepayment of certain borrowings; and general corporate purposes.
Company overview
Incorporated in 2016, Unitech Aerospace and Manufacturing Limited is engaging in the manufacturing of complex tools like mechanical assemblies, electro-mechanical systems, and components for aeroengine and airframe production.
The company is an engineering solutions provider specialising in the manufacturing of complex products with “build to print” and “build to specifications” offerings.
Unimech Aerospace IPO: BRLM
Anand Rathi Securities Limited, Equirus Capital Private Limited are the book running lead managers of the Unimech Aerospace IPO, while Kfin Technologies Limited is the registrar for the issue.
Unimech Aerospace IPO: Allotment, listing date
The allotment for the Unimech Aerospace IPO is expected to be finalised on December 27, 2024. Unimech Aerospace IPO will list on BSE, NSE with tentative listing date fixed as December 31.
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