Unimech Aerospace IPO presents an intriguing opportunity for investors, with a book-built issue valued at ₹500.0 crores. The offering consists of a fresh issue of 0.32 crore shares, raising ₹250 crores, aimed at funding the company’s growth and operational requirements. Additionally, there is an offer for sale (OFS) of 0.32 crore shares, amounting to ₹250 crores, allowing existing shareholders to partially exit their investment. This IPO provides a mix of growth capital and liquidity for stakeholders, making it a noteworthy event for market participants keen on exploring new investment opportunities.
The IPO is open for subscription from December 23, 2024, to December 26, 2024, offering investors a limited window to participate in this opportunity. The price band is set between ₹745 and ₹785 per share, providing flexibility for bidders within this range. Investors can apply in multiples of the lot size of 19 shares, making the minimum investment more accessible. With its structured bidding process and competitive pricing, this IPO is set to attract attention from retail and institutional investors alike.
The Grey Market Premium (GMP) is around 61%, reflecting strong demand and expectations of favorable listing gains. The company has solid fundamentals, being a small but profitable business. However, the IPO is priced at a high Price-to-Earnings (PE) ratio of 51, indicating an expensive valuation. Given these factors, investors aiming for listing gains should consider applying for the Unimech Aerospace IPO. For long-term investment, it would be wise to wait for a price correction after listing, as the Unimech Aerospace IPO Analysis – Apply or not stock may initially appear overvalued after listing above the bid price.
Unimech Aerospace IPO Details
| IPO Date | December 23, 2024 to December 26, 2024 | ||
| Listing Date | 31 December, 2024 | ||
| Face value | ₹5 per share | ||
| Price band | ₹745 to ₹785 per share | ||
| Lot size | 19 Shares | ||
| Total Issue Size | 63,69,424 shares (aggregating up to ₹500.00 Cr) | ||
| Fresh Issue | 31,84,712 shares (aggregating up to ₹ 250.00 Cr) | ||
| Offer for Sale | 31,84,712 shares of ₹5 (aggregating up to ₹250.00 Cr) | ||
| Issue Type | Book Built Issue IPO | ||
| Listing At | BSE, NSE | ||
| Share Holding Post Issue | 5,08,56,882 shares |
Unimech Aerospace IPO Lot Size calculator
| Application | Lots | Share | Amount |
| Retail (Min) | 1 | 19 | ₹14,915 |
| Retail (Max) | 13 | 247 | ₹1,93,895 |
| S-HNI (Min) | 14 | 266 | ₹2,08,810 |
| S-HNI (Max) | 67 | 1,273 | ₹9,99,305 |
| BS-HNI | 68 | 1,292 | ₹10,14,220 |
Unimech Aerospace IPO Distribution
| Investor Category | Shares Offered | Maximum Allottees |
| Anchor Investor Shares Offered | 19,05,094 (29.91%) | N/A |
| QIB Shares Offered | 12,70,065 (19.94%) | N/A |
| NII (HNI) Shares Offered | 9,52,548 (14.96%) | |
| bNII > ₹10L | 6,35,032 (9.97%) | 2,387 |
| sNII < ₹10L | 3,17,516 (4.99%) | 1193 |
| Retail Shares Offered | 22,22,611 (34.89%) | 1,16,979 |
| Employee Shares Offered | 19,108 (0.3%) | N/A |
| Total Shares Offered | 63,69,426 (100%) |
About Unimech Aerospace Company
Unitech Aerospace and Manufacturing Limited, started in 2016, makes advanced tools like mechanical assemblies, electro-mechanical systems, and parts used in aeroengine and airframe production.
The company provides engineering solutions, focusing on making complex products based on customer designs (“build to print”) or customized requirements (“build to specifications”). Their work includes machining, fabrication, assembly, testing, and creating new products for industries like aerospace, defense, energy, and semiconductors.
Between 2022 and 2024, they made 2,356 SKUs (Stock Keeping Units) of tools and precision sub-assemblies, and 624 SKUs of precision-machined parts, supplying to over 26 customers in 7 countries.
As of March 31, 2024, the company runs two manufacturing units in Bangalore, covering over 1,20,000 sq ft. Unit I in Peenya is 30,000 sq ft, and Unit II in a Special Economic Zone near Bangalore Airport is 90,000 sq ft. Both units are ISO certified.
By the same date, the company employed 384 people.
Products:
- Aero Engine Tooling: Engine lifting beams, oil tube alignment fixtures, radial centering supports, etc.
- Airframe Tooling: Lateral spar assembly, drill jigs, airframe assembly platforms.
- Precision Parts: Missile components.
- Precision Sub-Systems: Rocker arm – HMC CDA.
Strengths:
- Advanced manufacturing with high-precision capabilities.
- Digital-first company with strong infrastructure for smooth operations.
- Established player in a field with high entry barriers.
- Export-focused with a global delivery model.
- Strong vendor network and proven project execution.
- Experienced management team with effective operational skills.
Unimech Aerospace Company Finances
Amount in ₹ Crore
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Total Borrowing | 74.71 | 28.86 | 22.26 | 17.12 |
| Assets | 509.27 | 175.63 | 93.34 | 56.88 |
| Revenue | 127.58 | 213.79 | 93.93 | 37.08 |
| Profit after tax | 38.68 | 58.13 | 22.81 | 3.39 |
| Net Worth | 390.1 | 108.6 | 48.85 | 27.66 |
Unimech Aerospace IPO – Buy or Not
The IPO received a strong response across all categories, with an overall subscription of 4.05 times. The Qualified Institutional Buyers (QIB) category was subscribed 2.62 times, with 12,70,065 shares offered and 33,28,249 shares bid. Non-Institutional Investors (NII) showed significant interest with a subscription of 4.26 times. Within the NII category, the bNII segment (bids above ₹10 lakh) was subscribed 2.57 times, receiving bids for 16,29,250 shares against 6,35,032 shares offered. The sNII segment (bids below ₹10 lakh) witnessed an even stronger response with a subscription of 7.66 times, as 3,17,516 shares were offered and 24,31,373 shares were bid.
The retail category also performed exceptionally well, being subscribed 4.75 times, with bids for 1,05,52,372 shares against 22,22,611 shares offered. The employee category recorded the highest subscription at 6.89 times, with 19,108 shares offered and 1,31,613 shares bid. In total, the IPO saw bids for 1,80,72,857 shares against the 44,64,332 shares available.
The Grey Market Premium (GMP) stands at an impressive 61%, indicating strong demand and expectations for good listing gains. Fundamentally, the company appears solid—it is a small-sized, profitable business. However, the IPO is priced at a high Price-to-Earnings (PE) ratio of 51, making the valuation steep. Considering these factors, investors looking for listing gains are advised to apply for the IPO. However, for long-term investment, it would be better to wait for a correction post-listing, as the stock might become overvalued initially.
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