Unimech Aerospace and Manufacturing is an established name in the global high precision engineering solutions sector. Specializing in the manufacturing of complex products across industries such as aerospace, energy, and semiconductors, the company offers tailored build-to-print and build-to-specifications services, which include machining, fabrication, assembly, testing, and creating new products based on specific client needs. Now, the company is preparing to go public with its ₹500.00 Crore IPO to expand its capabilities and further solidify its market position.

IPO Overview: Price Band, Market Capitalization, and Lot Size

The Unimech Aerospace and Manufacturing IPO will open for subscription on December 23, 2024, and close on December 26, 2024. The company is offering a Fresh Issue of 31.84 Lakh Shares worth ₹250.00 Crores and an Offer for Sale of an equal number of shares, totaling ₹250.00 Crores. The price band for the IPO has been set at ₹745 to ₹785 per equity share, which places the market capitalization of the company at ₹3,992.26 Crores at the upper end of the price band.

The lot size for the IPO is 19 shares, meaning retail investors need to make a minimum investment of ₹14,915. High-net-worth individuals (HNIs) are required to invest in a minimum of 14 lots, or 266 shares, amounting to ₹208,810.

The IPO is being managed by Equirus Capital Private Limited and Anand Rathi Advisors Limited, with KFin Technologies Limited serving as the registrar for the issue.

IPO Subscription Status and Grey Market Premium (GMP) Insights

The Unimech Aerospace and Manufacturing IPO has already garnered strong attention, with its Grey Market Premium (GMP) showing promising potential for listing gains. As of December 23, 2024, the GMP stands at ₹550, indicating a 70.07% premium over the upper price band of ₹785. While GMP is an indicator of potential listing gains, it is based on unorganized market activity and should be taken with caution.

Here is the Day-wise GMP Trend for the Unimech Aerospace and Manufacturing IPO:

• December 23, 2024: GMP ₹550 (70.07%)
• December 20, 2024: GMP ₹305 (38.85%)

The GMP has shown a significant increase, reflecting growing investor interest in the IPO, which could translate to strong listing gains once the shares are listed on the BSE and NSE around December 31, 2024.

Unimech Aerospace and Manufacturing IPO Subscription Status

As of December 26, 2024, the IPO has been subscribed 175.31 times on the final day of subscription. This indicates extremely high demand for the company’s shares, which is a positive sign for investors looking for quick gains post-listing.

Anchor Investors and Allotment Process

Before the IPO opened, Unimech Aerospace and Manufacturing raised ₹149.55 Crores from Anchor Investors, allocating 19,05,094 equity shares at ₹785 per share. These investors have already secured their portion of the issue, providing a strong endorsement of the company’s valuation.

The allotment date for the IPO is set for December 27, 2024, and investors can check their allotment status by visiting the registrar’s website. To check the status, investors need to provide their application number, PAN, or DP Client ID.

Objectives of the Unimech Aerospace and Manufacturing IPO

The proceeds from the Unimech Aerospace and Manufacturing IPO will be utilized for the following objectives:

1. Capital Expenditure: ₹363.66 Million will be used for the purchase of new machinery and equipment to expand the company’s manufacturing capabilities.
2. Working Capital: ₹252.85 Million will be allocated to meet the company’s working capital requirements.
3. Investment in Subsidiaries: The company plans to invest in its material subsidiary for the purchase of machinery and equipment (₹438.91 Million) and to fund its working capital (₹447.15 Million).
4. Repayment of Borrowings: The company also intends to use ₹400.00 Million to repay or prepay certain borrowings availed by its material subsidiary.

Financial Performance and Key Metrics

Unimech Aerospace and Manufacturing has demonstrated a strong growth trajectory in recent years. The company reported the following revenue figures for the past three fiscal years:

• 2024 (as of September 30, 2024): ₹1,275.77 Million
• 2023: ₹2,137.86 Million
• 2022: ₹949.30 Million
• 2021: ₹370.81 Million

The company’s EBITDA for FY 2024 stood at ₹557.49 Million, and its Profit After Tax (PAT) for the same period was ₹386.80 Million. These numbers reflect significant growth compared to previous years.

The Pre-Issue EPS is ₹13.23, and the Post-Issue EPS is ₹11.43 for FY24. The P/E ratio for the IPO is 59.33x, which is attractive when compared to the industry’s average P/E ratio of 102x.

With an ROCE of 54.36% and an ROE of 53.53%, Unimech Aerospace and Manufacturing demonstrates a strong return on equity, positioning the company well for future growth and profitability.

Unimech Aerospace and Manufacturing IPO Review

Given the company’s strong financials, robust growth potential, and high demand for its IPO, we recommend that risky investors apply to the Unimech Aerospace and Manufacturing IPO for potential listing gains. While the company is well-positioned for growth in sectors like aerospace, energy, and semiconductors, the high GMP indicates positive investor sentiment for its debut.

The Upcoming IPOs in this week and coming weeks are Indo Farm, Technichem Organics, Leo Dry Fruits, Solar91 Cleantech, Rosmerta Digital and Avanse Financial.

The Current active IPO is Citichem India and Anya Polytech.

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