Unimech Aerospace and Manufacturing IPO 2024 is set to be a key event for investors interested in the high-precision engineering sector. The company is a leader in manufacturing complex products for industries such as aerospace, energy, and semiconductors. The IPO is a Book Built Issue with an offer size of ₹500 Crores, consisting of a Fresh Issue of ₹250 Crores and an Offer for Sale (OFS) of ₹250 Crores. The price band for this IPO is set between ₹745 to ₹785 per share, and the market capitalization of the company will be ₹3,992.26 Crores at the upper price band. The lot size is 19 shares, with a minimum investment of ₹14,915 for retail investors. The minimum investment for HNIs is ₹208,810 (14 lots). The subscription period runs from December 23, 2024, to December 26, 2024, with the allotment date expected on December 27, 2024, and the listing date on December 31, 2024.

IPO Subscription Status and GMP Insights

As of December 24, 2024, the Unimech Aerospace IPO is subscribed 5.50 times on the second day of its subscription. The Grey Market Premium (GMP) is currently ₹550, showing a potential listing gain of 70.07%, with an expected listing price of ₹1,335 based on current trends.

Financials and Key Metrics

Unimech Aerospace has demonstrated steady growth in its financial performance. The company reported revenues of ₹1,275.77 Million for the period ending September 30, 2024, and a Profit After Tax (PAT) of ₹386.80 Million for the same period. The EBITDA for FY24 is ₹557.49 Million, which reflects strong profitability. The pre-issue P/E ratio stands at 59.33x, and the post-issue P/E ratio is 68.67x, indicating a higher valuation relative to industry standards, which is 102x.

The company's Return on Capital Employed (ROCE) for FY24 is 54.36%, and Return on Equity (ROE) is 53.53%, reflecting excellent financial health.

IPO Objectives and Use of Proceeds

The net proceeds from the Unimech Aerospace IPO will be used for the following purposes:

1. ₹363.66 Million for capital expenditure to purchase machinery and equipment for company expansion.
2. ₹252.85 Million for funding working capital requirements.
3. ₹438.91 Million and ₹447.15 Million for purchasing machinery and working capital needs for the company's material subsidiary.
4. ₹400 Million for the repayment of borrowings by the subsidiary.
5. General corporate purposes.

Recommendations for Investors

With a high Grey Market Premium and strong financial metrics, we recommend that risky investors consider applying for the Unimech Aerospace and Manufacturing IPO. The company's solid financials, combined with significant potential listing gains, make this IPO an attractive proposition, though investors should be aware of the higher P/E ratio when considering the investment.

The Upcoming IPOs in this week and coming weeks are Anya Polytech, Citichem India, Solar91 Cleantech, Rosmerta Digital, Indo Farm, and Avanse Financial. The Current active IPO is Unimech Aerospace, Ventive Hospitality, Senores Pharmaceuticals, Carraro India.
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.