Unimech Aerospace and Manufacturing Limited IPO Day 2 Live Updates: Key Highlights, Subscription Status, and Insights

IPO Day 1 Subscription Status 

(December 23, 2024, End of Day)

On the first day of bidding, the Unimech Aerospace and Manufacturing IPO saw an overall subscription of 4.05 times the total shares on offer. The Non-Institutional Investors (NIIs) subscribed to 4.26 times their allotted portion, while Retail Investors subscribed to 4.75 times the shares reserved for them. The subscription rate for Qualified Institutional Buyers (QIBs) stood at 2.62 times, and the Employees' Category recorded a subscription of 6.89 times.

IPO Details

• The Unimech Aerospace IPO is a book-built offering valued at Rs 500 crore. The issue comprises a fresh issue of 0.32 crore shares worth Rs 250 crore and an offer for sale of 0.32 crore shares also aggregating to Rs 250 crore.
• The IPO bidding opened on December 23, 2024, and will close on December 26, 2024. 
• The allotment is anticipated to be finalized on Friday, December 27, 2024, with the listing on BSE and NSE scheduled for Tuesday, December 31, 2024.
• The price band for the Unimech Aerospace IPO is set between ₹745 and ₹785 per share. 
• The minimum lot size for applications is 19 shares, requiring a retail investment of ₹14,915. For sNII investors, the minimum lot size is 14 lots (266 shares), totaling ₹2,08,810, while for bNII investors, it is 68 lots (1,292 shares), amounting to ₹10,14,220.
• Anand Rathi Securities Limited and Equirus Capital Private Limited are the book running lead managers, while Kfin Technologies Limited serves as the registrar for the issue.

Use of Proceeds

The Company intends to use the net proceeds from the fresh issue for several purposes, including funding capital expenditure for expansion through the purchase of machineries and equipment, meeting working capital requirements, and making investments in its material subsidiary for purchasing machineries and equipment, funding its working capital needs, and repaying or prepaying certain borrowings. Additionally, a portion of the proceeds will be allocated for general corporate purposes. It is important to note that the Company will not receive any proceeds from the Offer for Sale by the Selling Shareholders, and these proceeds will not be included in the net proceeds.

Unimech Aerospace and Manufacturing Business Overview

Unitech Aerospace and Manufacturing Limited, established in 2016, specializes in the production of intricate tools, including mechanical assemblies, electro-mechanical systems, and components for aero engine and airframe manufacturing.

The company offers engineering solutions focused on the production of complex products through "build to print" and "build to specifications" services. This includes machining, fabrication, assembly, testing, and the creation of new products tailored to the unique needs of clients in industries such as aerospace, defense, energy, and semiconductors.

Between 2022 and 2024, the company produced 2,356 SKUs in the tooling and precision complex sub-assemblies category, and 624 SKUs in the precision machined parts category, serving over 26 customers across 7 countries.

As of March 31, 2024, Unitech Aerospace operates two manufacturing facilities in Bangalore, spanning over 1,20,000 sq ft. Unit I, located in Peenya, covers 30,000 sq ft, while Unit II, located in a Special Economic Zone near Bangalore International Airport, occupies 90,000 sq ft. Both facilities are ISO registered.

 Financial Highlights

• Revenue increased by 121.71% from Rs. 94.17 crore in FY23 to Rs. 208.78 crore in FY24.
• Profit after tax (PAT) rose by 154.84% between the financial year ending March 31, 2023 and March 31, 2024, from Rs. 22.81 crore to Rs. 58.13 crore.

Key Ratios