The Initial Public Offering (IPO) of Unimech Aerospace and Manufacturing Limited witnessed strong demand on its first day, with the issue subscribed 3.82 times. The company received bids for 1,79,56,102 shares against the offered 47,04,028 equity shares, within a price band of ₹745-785, as per the stock exchange data.
The retail portion saw a subscription of 4.46 times, while the non-institutional investor portion was subscribed 4.03 times. The Qualified Institutional Buyer (QIB) portion received 2.49 times subscription, and the employee portion was oversubscribed 6.48 times. The subscription window for the IPO opened on Monday, December 23, 2024, and will close on Thursday, December 26, 2024.
Prior to the issue’s opening, Unimech Aerospace raised ₹149.55 crores from anchor investors, including prominent foreign and domestic institutions such as 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, and Clarus Capital.
Leading brokerage firms including Nirmal Bang, Anand Rathi, SBI Securities, KR Choksey, Ajcon Global, Arihant Capital, BP Wealth, StoxBox, Eureka Securities, GEPL Capital, Canara Bank Securities, Reliance Securities, Marwadi Financial Services, Master Trust Capital, SMIFS, Swastika Investmart, IndSec Securities, and Ventura Securities have all given the issue a “Subscribe” rating. They highlighted the company’s impressive financial performance, with a 140% compound annual growth rate (CAGR) in revenue from FY22 to FY24, strong margins, and a reasonable price-to-earnings (P/E) ratio of 51.6x to 69x. Additionally, Unimech’s niche focus on aerospace and defense, export-driven business model, and planned capacity expansions in sectors like semiconductors and renewable energy position it for significant growth in the long term.
Unimech Aerospace and Manufacturing Ltd. was supported in its IPO process by Four Bridge Capital. The book-running lead managers for the issue are Anand Rathi Advisors Limited and Equirus Capital Private Limited, with KFin Technologies Limited acting as the registrar.
