The Unimech Aerospace IPO is set to open for subscription on December 23, 2024, and will close on December 26, 2024. The IPO comprises a book-built issue of ₹500 crores, with a price band of ₹745 to ₹785 per share. This offer includes both a fresh issue and an offer for sale, giving investors an opportunity to tap into the growth of an aerospace manufacturing company.

Unimech Aerospace and Manufacturing Limited, a company focused on producing precision components and complex tooling for the aerospace industry, is offering 0.32 crore shares in total. The IPO’s minimum lot size is 19 shares, requiring a minimum investment of ₹14,915 from retail investors.

Key details of the Unimech Aerospace IPO are as follows:

• Issue Size: ₹500 crores
• Price Band: ₹745 to ₹785 per share
• Retail Investor Minimum Investment: ₹14,915
• Allotment Date: December 27, 2024
• Listing Date: December 31, 2024

About Unimech Aerospace and Manufacturing Limited

Founded in 2016, Unimech Aerospace and Manufacturing Limited specializes in the manufacturing of high-precision aerospace products such as mechanical assemblies, electro-mechanical systems, and aeroengine components. The company primarily serves customers in industries such as aerospace, defense, energy, and semiconductors.

Unimech Aerospace operates out of two manufacturing facilities in Bangalore, with over 120,000 sq ft of space. One of the units is located in Peenya, while the other is in a Special Economic Zone near the Bangalore International Airport. Both facilities are registered with ISO certifications.

Between 2022 and 2024, Unimech Aerospace produced 2,356 SKUs in tooling and precision sub-assemblies and 624 SKUs in precision machined parts, supplying to more than 26 customers across 7 countries. The company boasts a workforce of 384 employees as of March 31, 2024.

Products and Offerings

Unimech Aerospace manufactures a wide array of specialized products for the aerospace industry, including:

• Aero Engine Tooling: Components such as engine lifting beams, oil tube alignment fixtures, and radial centering supports.
• Airframe Tooling: Products like lateral spar assemblies, drill jigs, and airframe assembly platforms.
• Precision Parts: Missile components, critical parts used in advanced defense applications.
• Precision Sub-systems: Rocker arms and other high-precision subsystems used in aerospace and defense sectors.

Competitive Strengths

Unimech Aerospace holds a strong competitive position in the aerospace manufacturing sector due to the following factors:

1. Advanced Manufacturing Capabilities: The company delivers high-precision engineering solutions using state-of-the-art manufacturing processes.
2. Digital-First Manufacturing: Unimech is a digital-first company, using advanced technologies that ensure smooth integration of operations.
3. High Barriers to Entry: The aerospace manufacturing sector requires specialized skills and infrastructure, giving Unimech a unique position in the market.
4. Global Delivery Model: The company has a robust export-driven business model, supplying products to clients across multiple continents.
5. Strong Vendor Ecosystem: Unimech Aerospace has built a strong network of vendors and subcontractors, ensuring timely delivery and operational efficiency.
6. Experienced Management: The company’s leadership team has extensive experience in the aerospace industry, ensuring effective implementation of business strategies.

IPO Investment Considerations

The Unimech Aerospace IPO offers an opportunity to invest in a high-precision, export-driven company with strong growth potential. The price band of ₹745 to ₹785 per share reflects the value of a company positioned at the forefront of aerospace manufacturing. As with any IPO, it's crucial for investors to evaluate the company’s financial performance, growth prospects, and industry dynamics before making investment decisions.

The minimum investment for retail investors is ₹14,915 for 19 shares, making it a relatively accessible option for individuals interested in participating in this IPO. Additionally, with BSE and NSE listings and a tentative listing date of December 31, 2024, this IPO presents a timely opportunity for investors looking to diversify into the aerospace and defense sector.

Conclusion

The Unimech Aerospace IPO offers investors an opportunity to participate in a growing company with cutting-edge capabilities in the aerospace manufacturing industry. With a strong market position, advanced manufacturing infrastructure, and global client base, Unimech Aerospace presents an intriguing option for investors looking to enter a high-growth sector. The IPO opens for subscription on December 23, 2024, with a price range of ₹745 to ₹785 per share, and the allotment will be finalized by December 27, 2024, followed by listing on December 31, 2024.