Unimech Aerospace and Manufacturing is a global high precision engineering solutions company specializing in manufacturing of complex products with “build to print” and “build to specifications” offering, which involves machining, fabrication, assembly, testing and creating new products basis the specific requirements of the clients for the aerospace, energy and semi-conductor industries.

Unimech Aerospace and Manufacturing, an Book Built Issue amounting to ₹500.00 Crores, consisting an Fresh Issue of 31.84 Lakh Shares worth ₹250.00 Crores and an Offer for Sale of 31.84 Lakh Shares totalling to ₹250.00 Crores. The subscription period for the Unimech Aerospace and Manufacturing IPO opens on December 23, 2024, and closes on December 26, 2024. The allotment is expected to be finalized on or about Friday, December 27, 2024, and the shares will be listed on the BSE & NSE with a tentative listing date set on or about Tuesday, December 31, 2024.

The Share price band of Unimech Aerospace and Manufacturing IPO is set at ₹745 to ₹785 per equity share. The Market Capitalisation of the Unimech Aerospace and Manufacturing Limited at IPO price of ₹785 per equity share will be ₹3,992.26 Crores. The lot size of the IPO is 19 shares. Retail investors are required to invest a minimum of ₹  14,915, while the minimum investment for High-Net-Worth Individuals (HNIs) is 14 lots (266 shares), amounting to ₹  208,810.

Equirus Capital Private Limited and Anand Rathi Advisors Limited are the book-running lead manager while KFin Technologies Limited is the registrar for the Issue. 

Unimech Aerospace and Manufacturing Limited IPO GMP Today
The Grey Market Premium of Unimech Aerospace and Manufacturing Limited IPO is expected to be ₹550 based on the financial performance of the company. No real trading is done on the basis of Grey Market Premium that's why no real discovery of price can be done before the listing of shares on the stock exchange. The Grey Market Premium totally depends upon the Demand and Supply of the shares of the company in unorganized manner which is not recommended. The Grey Market Premium is mentioned for educational and informational purposes only.

Unimech Aerospace and Manufacturing Limited Day Wise IPO GMP Trend 

Date	IPO Price	Expected Listing Price	GMP	Last Updated
23 December 2024	₹ 785	₹ 1,335	₹ 550 (70.07%)	03:30 PM; 23 Dec 2024
20 December 2024	₹ 785	₹ 1,090	₹ 305 (38.85%)	05:00 PM; 20 Dec 2024

Unimech Aerospace and Manufacturing Limited IPO Live Subscription Status Today: Real-Time Updates
As of 07:00 PM on 26 DECEMBER, 2024, the Unimech Aerospace and Manufacturing IPO live subscription status shows that the IPO subscribed 175.31 times on its Final day of subscription period. Check the Unimech Aerospace and Manufacturing IPO Live Subscription Status Today at BSE.

Unimech Aerospace and Manufacturing IPO Anchor Investors Report
Unimech Aerospace and Manufacturing has raised ₹149.55 Crores from Anchor Investors at a price of ₹785 per shares in consultation of the Book Running Lead Managers. The company allocated 19,05,094 equity shares to the Anchor Investors. Check Full List of Unimech Aerospace and Manufacturing Anchor Investor List.

Note:- Equity Shares allotted to Anchor Investors (if any) are allotted from Qualified Institutional Buyers (QIBs) reservation portion.
Note:- The Number of shares offered shown IPO subscription section table is calculated at the lower end of the price band and Number of shares calculated in IPO details table section is calculated at upper end of the price band in case of Book Building Issue, so there can be difference. This is because we assume shares will be issued by the company at upper band as Anchor Investors also subscribe at upper band and shares will be issued at lower band only if in case of undersubscription of IPO.
Note:- Market Maker portion (if any) are not shown separately in subscription table and included in NIIs reservation portion

Unimech Aerospace and Manufacturing Limited IPO Allotment Date - Step by Step Guide to Check Allotment Status Online
Unimech Aerospace and Manufacturing IPO allotment date is 27 December, 2024, Friday. Unimech Aerospace and Manufacturing IPO Allotment will be out on 27th December 2024 and will be live on Registrar Website from the allotment date. Check Unimech Aerospace and Manufacturing IPO Allotment Status here. Here's how you can check the allotment status:
- Navigate to the IPO allotment status page.
- Select Unimech Aerospace and Manufacturing Limited IPO from the dropdown list of IPOs.
- Enter your application number, PAN, or DP Client ID.
- Submit the details to check your allotment status.
By following either of these methods, investors can quickly determine their allotment status and proceed accordingly with their investments.

Objectives of Unimech Aerospace and Manufacturing Limited IPO
Unimech Aerospace and Manufacturing proposes to utilise the Net Proceeds towards the following objects: 
1. ₹363.66 Million is required for Funding of capital expenditure for expansion through purchase of machineries and equipment by the Company;
2. ₹252.85 Million is required for Funding working capital requirements of the Company;
3. Investment in their Material Subsidiary for:
   (i) ₹438.91 Million is required for purchase of machineries and equipment;
   (ii) ₹447.15 Million is required for funding its working capital requirements; and
   (iii) ₹400.00 Million is required for repayment / prepayment, in full or part, of certain borrowings availed by their Material Subsidiary; and
4. General corporate purposes.

Refer to Unimech Aerospace and Manufacturing Limited RHP for more details about the Company.

Check latest IPO Review & analysis, Live IPO GMP today, Live IPO Subscription Status Today, Share Price, Financial Information and other details before applying in the IPO.

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About Unimech Aerospace and Manufacturing Limited

BUSINESS OVERVIEW

Unimech Aerospace and Manufacturing specializes in engineering solutions, offering aero tooling, ground support equipment, electro-mechanical sub-assemblies, and precision-engineered components for the aerospace, defense, energy, and semiconductor industries. They provide both “build to print” manufacturing (based on client designs) and “build to specifications” solutions (design assistance based on client needs).

Their export-oriented business caters to major OEMs and their licensees worldwide, focusing on quality, on-time delivery, and a diverse product portfolio. They excel in producing high-mix, low-volume components, with the flexibility to manufacture even single-unit SKUs, optimizing pricing and profit margins.

Between Fiscal 2022 and September 30, 2024, They manufactured 2,999 SKUs in tooling and precision complex sub-assemblies and 760 SKUs in precision machined parts, serving 26 customers across 7 countries. Using advanced 3-D modeling software, their skilled engineers convert designs or specifications into finished products, ensuring precision and efficiency. Their clientele includes top aircraft global OEMs, top aero engine global OEMs and their licensees. From the Energy sector, NPCIL and other top global OEMs are their clients. Their defense clients include Brahmos and in the semi-conductor equipment manufacturing segment, the top global OEMs are their clients. As of September 30, 2024, their workforce comprised 345 permanent employees on their pay roll and 277 contract basis. The Bankers of the Company are South Indian Bank and Axis Bank Limited.

INDUSTRY ANALYSIS

Indian Manufacturing Sector
Manufacturing plays a very important role in the overall GDP contribution of India and its share of contribution to Real GDP is expected to increase from 15% in 2022 to 22% in 2030. The ‘Make in India” program aims at increasing manufacturing sector contribution across 25 sectors, including aerospace and defence amongst others. Additionally, major companies like Foxconn, Oppo, ZTE, Phicomm, Mercedes Benz, BMW, Volvo, Ford, and others have invested in India, setting up manufacturing facilities and R&D centres.

In 2019, manufacturing experienced a growth rate of 5.4% in its contribution to GVA due to steady expansion of industrial activities and a favourable economic environment. In 2020, manufacturing sector contracted by 3.0% due to COVID related disruptions -across global supply chains, factory closures, labour shortages, and a sharp decline in consumer demand. In 2021 there was a recovery in manufacturing’s contribution to GVA, recording a growth rate of 2.9% and a significant resurgence in manufacturing in 2022, with its growth in contribution to GVA soaring by 11.1%. However, the momentum faltered in 2023, with a deceleration of 0.6% in its contribution to GVA-due to global economic uncertainties, geopolitical tensions, and inflationary pressures.

The trends in the manufacturing index of Industrial Production (IIP) offer a comprehensive insight into the performance and trajectory of the manufacturing sector over the fiscal years spanning from 2017-18 to 2022-23.

In the fiscal year 2017-18, the manufacturing index stood at 126.6, indicating a baseline level of industrial activity and output and serving as a benchmark for subsequent years’ performance, providing a reference point for analysing trends and fluctuations in manufacturing production. The manufacturing index increased to 131.50 in fiscal year 2018-19 driven by factors such as increased domestic demand, improved business sentiment, and favourable macroeconomic conditions. However, the fiscal year 2019-20 witnessed a slight decline in the manufacturing index reaching 129.60due to a combination of domestic and external factors, including subdued investment sentiment, trade tensions, and economic slowdowns in key export markets. The fiscal year 2020-21 marked a significant downturn in the manufacturing index, plummeting to 117.20 spurred by the disruptions caused by the COVID-19 pandemic. As economies gradually reopened and recovery efforts gained traction, the fiscal year 2021-22 witnessed a notable rebound in the manufacturing index and it reached 131.00. This resurgence reflected the initial stages of economic recovery, as pent-up demand, government stimulus measures, and resumption of industrial activities fuelled manufacturing output. The rebound in the index signalled a positive turnaround for the manufacturing sector.

AEROSPACE INDUSTRY
International tourism has been significantly impacted by the COVID-19 pandemic, with global international tourist arrivals reaching 1.46 billion in 2019, a growth of 3.7% compared to 2018. In April 2023, WTTC has announced that the global Travel & Tourism sector has recovered 95% compared to pre-COVID. The total jobs in this sector globally amounted to 295 million in 2022, with an addition of 21.60 million jobs in 2022.

One in 11 jobs globally are related to travel and tourism industry in 2022. As the world recovers from the pandemic, there is a focus on sustainable practices in the tourism industry, such as using the latest technology to find innovative solutions to challenges like overcrowding in popular tourist destinations. Developing countries, particularly in Asia-Pacific, are becoming more competitive in the tourism market, with many realizing the importance of addressing restrictive visa regimes to boost economic opportunities and job creation.

The industry has been crucial in shaping the future of tourism, with aviation being the most favored means of transport for international tourism. Air travel and international tourism have been intertwined for decades, with air travel providing vital links for the global tourism industry. Over half of international tourists travel by air as per ATAG, making it a crucial sector for the tourism industry’s sustainable growth.

The tourism sector is a significant contributor to the global economy, generating $8.8 trillion in world GDP (10.4% of the global economy) and supporting 319 million jobs in 2019. The Global tourism body has forecasted that the GDP contribution will grow to USD 15.50 Trillion in 2033 and represent to 11.6% of Global economy, which would generate around 430 million jobs.

Increase in overall global market for tourism and travel leading to increase in Aerospace market. Strong order forecast for new passenger & freighter aircrafts globally leading to an increase in demand for new aero-tooling, airframe production and components.

DEFENCE INDUSTRY
The total number of defence aircrafts delivered in 2023 were 188 units, which includes fighters, transport and special mission aircraft. Of these, 155 were fighter aircrafts of the F35 program delivered to the USA. The second highest delivered defence aircraft in 2023 were 22 units of the F18. The P-8 from Boeing accounted for 11 deliveries in 2023. The increase of geopolitical conflict coupled with increase in indigenous programs in countries like India and South Korea are expected to be the key drivers in this market. Countries like India are developing their own fighter jets like the HAL Tejas combat aircraft to increase the ‘Make in India’ drive and reduce reliance on imports. Another key trend is the indigenisation of specific components of the imported platforms seen across multiple countries in APAC.

70% of the global defence aircraft engine market lies with 7 companies only in 2023 which represents a competitive market. General Electric (GE) Aviation is a significant player in the military aircraft engine market holding a 24% share in 2023. GE engines, such as the F110 and F414, power a variety of military aircraft worldwide, including fighters such as the F-15 and F/A-18. The F110 powers the new, fly-by-wire F-15EX Advanced Eagle, the fifth F-15 variant designed to replace the oldest F-15s in the U.S. Air Force fleet. It is estimated that more than 100 F-15EX multirole fighters will be purchased by the U.S. Airforce.

Pratt & Whitney accounts for 18% of the market share of defence aircraft engines and is the second largest player in the same, producing engines such as the F135, which powers the F-35 Lightning II, one of the world’s most advanced fighter aircraft. Pratt & Whitney also makes engines for other military aircraft, such as the F-22 Raptor and the C-17 Globemaster III. Pratt & Whitney controls 18% of the military air engine market. Pratt & Whitney also secured the sole-source contract for F-35 engine upgrades. The program, known as the Engine Core Upgrade (ECU), is scheduled to begin with engine testing in 2026 and fielding in 2029. Other significant players in defence aircraft engines are Safran and Rolls Royce with 12% and 10% market share respectively in 2023. Other small players are Honeywell, Europrop International and IGI with market shares between 3-1% in 2023.

INDIAN ENERGY SECTOR
India’s power consumption is on a steep climb, fuelled by a booming economy, rising living standards, and rapid urbanization. The Indian power consumption has increased from 1,215.00 billion Kwh in 2018 to 1,582.81 billion Kwh in 2023 and is expected to further grow to 2,346.16 billion Kwh by 2028F.

The energy mix in India is skewed to Steam those accounts for around 75%-80% of the power generated. This is followed by renewable and hydro which accounts to 13% and 10%, respectively in 2023. The share of renewable energy is expected to surpass 25% by 2030 and coal fire. There is a growing focus on renewable energy sources like solar and wind. The government is actively promoting renewable energy projects due to their cost-effectiveness and environmental benefits. This focus on renewables is expected to play a crucial role in meeting India’s future energy needs in a sustainable manner.

BUSINESS STRENGTHS

1. Advanced Manufacturing Capabilities : Unimech specializes in high precision engineering solutions, offering “build to print” and “build to specifications” products for the aerospace, defense, energy, and semiconductor industries, involving machining, fabrication, assembly, and testing.

2. Digital-First Operations with Robust Infrastructure : They utilize digital manufacturing systems and an in-house ERP to streamline operations, track manufacturing processes, and ensure timely delivery while maintaining high-quality standards.

3. Sector Expertise with High Barriers to Entry : They produce complex tooling, assemblies, and components for multiple industries, adhering to AS9100D & BS EN ISO 9001:2015 standards. Between FY2022 and September 2024, they manufactured 3,759 SKUs for 26 customers across 7 countries.

4. Export-Oriented Global Delivery Mode : Exports contribute 90% of revenue, with a global client base spanning the USA, Germany, and the UK. Revenue rose from ₹941.66 million in FY2022 to ₹2,087.75 million in FY2024, showcasing strong international presence.

5. Robust Vendor Network : Their ecosystem of 42 vendors and 118 machines ensures flexibility for high-mix, low-volume production, maintaining efficiency and quality.

6. Experienced Leadership Team : Led by promoters with over 90 years of combined experience, their team of 164 engineers drives innovation, automation, and operational excellence, leveraging expertise from global firms like Bosch, Wipro, and Goodrich Aerospace.

7. Strong Financial Performance : Unimech achieved a CAGR of 139.7% (FY2022-FY2024), with revenues growing from ₹941.66 million in FY2022 to ₹2,087.75 million in FY2024, and PAT margins improving from 9.33% to 27.85%, reflecting robust profitability

BUSINESS STRATEGIES

1. Market Developmen : Expanding their global footprint by leveraging expertise in aerospace, defense, semiconductor, and energy sectors, with 90% export-driven revenue and proven execution capabilities to grow in key geographies.

2. Market Penetratio : Aiming to increase market share and wallet share by strengthening our presence in core sectors like aerospace, defense, semiconductors, and energy.

3. Capacity Expansion : Boosting production capacity with two state-of-the-art facilities spanning 120,000 sq. ft. in Bangalore, ensuring scalability and collaboration with global and local manufacturers.

4. Diversification : Pursuing inorganic growth through acquisitions and partnerships, while enhancing capabilities to deliver high-margin, complex precision components across global markets.

5. Product Development : Expanding into high-mix, low-volume industries like semiconductor manufacturing, medical devices, and robotics, focusing on organic growth and innovation in precision engineering.

BUSINESS RISK FACTORS

1. Sector Dependence : Over 94% of revenue comes from the aerospace sector, specifically from aero-engine and airframe tooling, making the company highly reliant on this industry’s performance.

2. Export Reliance : More than 90% of revenue comes from exports to key markets like the US, Germany, and the UK, making the business dependent on the performance of global industries and customer geographies.

3. Returns and Re-work : Product defects or deviations requiring returns and re-work impact costs and reputation, though historical returns have been minimal, averaging less than 0.5% of revenue.

4. Extended Customer Onboarding : Onboarding new customers in specialized industries can take up to three years, delaying significant revenue contributions and increasing dependency on trust-building efforts.

5. Expansion Delay : Planned capacity expansions in Bengaluru’s Aerospace SEZ and new facilities face risks of delays and cost overruns, impacting scalability and operational timelines.

6. High-Cost, Low-Volume Mode : The company’s high-mix, low-volume production for precision components requires significant investments in R&D and skilled labor, resulting in higher costs and limited price competitiveness compared to high-volume manufacturers

NOTE : Unimech Aerospace operates in high-precision industries like aerospace, defense, energy, and semiconductors. While the company demonstrates strong capabilities, it faces risks related to sector dependency, export reliance, quality challenges, extended customer onboarding, expansion uncertainties, and its high-cost, low-volume production model.