Unimech Aerospace and Manufacturing Limited, a leading global provider of high-precision engineering solutions, is gearing up for its much-anticipated IPO. Specializing in the manufacturing of complex products, Unimech caters to a variety of industries, including aerospace, energy, and semiconductors. The IPO will raise ₹500.00 Crores, with a Fresh Issue of 31.84 Lakh shares amounting to ₹250.00 Crores and an Offer for Sale of an equal number of shares. This article provides a comprehensive guide to the IPO, detailing its price band, Grey Market Premium (GMP), subscription status, and more.

IPO Details:

The price band for the Unimech Aerospace and Manufacturing IPO is set between ₹745 and ₹785 per equity share. The lot size is 19 shares, and retail investors are required to invest a minimum of ₹14,915. High-Net-Worth Individuals (HNIs) need to invest in 14 lots (266 shares), totaling ₹208,810.

The subscription period for the IPO starts on December 23, 2024, and closes on December 26, 2024. The allotment is expected to be finalized by December 27, 2024, with the shares listed on the BSE and NSE on December 31, 2024.

Unimech’s market capitalization at the upper price band of ₹785 per share will be ₹3,992.26 Crores. This positions the company as a key player in high-precision engineering, with promising growth prospects in aerospace, energy, and semiconductor industries.

Grey Market Premium and Subscription Insights:

As of December 23, 2024, the Unimech Aerospace and Manufacturing IPO shows a Grey Market Premium (GMP) of ₹305, indicating a potential listing gain of 38.85%. However, it’s important to note that GMP is not a reliable indicator of listing price and is subject to market demand and supply.

The IPO was subscribed 0.92 times on the first day of the subscription period, reflecting strong investor interest. Anchor Investors have already committed ₹149.55 Crores, showing confidence in Unimech’s growth trajectory.

Fund Utilization:

The net proceeds from the IPO will be used to fund several critical initiatives:

1. ₹363.66 million for purchasing new machinery and equipment to expand capacity.
2. ₹252.85 million to strengthen working capital requirements.
3. Investments in material subsidiaries for further expansion, including the purchase of machinery and repayment of borrowings.

These objectives underline Unimech’s commitment to further expanding its operations and capabilities, enhancing its position as a leader in the engineering solutions industry.

Company Performance and Financials:

Unimech has shown impressive financial growth, with revenues from operations increasing from ₹370.81 million in FY2022 to ₹1,275.77 million in FY2024. This represents a steady upward trajectory. Similarly, EBITDA and Profit after Tax (PAT) have also witnessed significant improvements, indicating strong profitability.

The company’s ROCE for FY24 stands at 54.36%, while the ROE is 53.53%, both reflecting exceptional efficiency in utilizing capital. The pre-issue EPS of ₹13.23 and the post-issue EPS of ₹11.43 suggest that the IPO is priced reasonably compared to industry peers, with a P/E ratio of 59.33x (pre-issue) and 68.67x (post-issue) against an industry P/E ratio of 102x.

Given the company’s solid financials, impressive growth, and the strong demand indicated by the Grey Market Premium and subscription status, the Unimech Aerospace and Manufacturing IPO presents a promising investment opportunity for risk-tolerant investors.

The Upcoming IPOs in this week and coming weeks are Solar91 Cleantech, Anya Polytech, Rosmerta Digital, Indo Farm, and Avanse Financial. The Current active IPO is Unimech Aerospace, Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Transrail Lighting, Mamata Machinery, DAM Capital, Sanathan Textiles, Concord Enviro and Newmalayan Steel. For more details on upcoming IPOs, you can visit our page at  and stay updated with the latest news on IPO updates on . Join our  for regular Stock Market Trading and Investment Calls by  - SEBI Registered Research Analyst &  for Regular Share Market, News & IPO Updates. Start your Stock Market Journey and Apply in IPO by opening a Free Demat Account in .Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance SaathiTop News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance SaathiTrading with CA Abhay Telegram ChannelCA Abhay VarnFinance Saathi Telegram ChannelChoice Broking FinX.