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Unimech Aerospace IPO
Unimech Aerospace and Manufacturing Ltd
₹14,155 /19 sharesMinimum Investment
Unimech Aerospace IPO Listing Details
| Listed On | Issue Price | Listing Price | Listing Gains |
|---|---|---|---|
| -- | ₹785.00 | ₹1,460.00 | ₹675.00 (85.99%) |
Unimech Aerospace IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 23 Dec ‘24 - 26 Dec ‘24 | ₹14,155 | 19 | ₹745 - ₹785 |
| Issue Size | IPO Doc |
|---|---|
| 500.00Cr | RHP PDF |
Subscription rate
As of 26 Dec'24, 05:00 PM
| Qualified Institutional Buyers | 116.01x |
| Non-Institutional Investor | 196.78x |
| Retail Individual Investor | 44.11x |
| Employees | 78.53x |
| Total | 97.29x |
About Unimech Aerospace
Founded in
2016
Managing director
Mr. Anil Kumar P
Parent organisation
Unimech Aerospace and Manufacturing Ltd
Unimech Aerospace and Manufacturing Ltd IPO
https://www.youtube.com/watch?v=vkW8H81hPmM
Strengths & Financials of Unimech Aerospace
Strengths
Risks
Unimech Aerospace’s client base includes leading global airframe and aero-engine OEMs as well as their approved licensees.
Both manufacturing facilities are AS 9100D certified for aerospace quality management, BS EN (British and European Standard) ISO 9001:2015 certified for quality management systems and ISO 45001:2018 certified for occupational health and safety.
Between FY22 and the six months ending September 30, 2024, the company produced 2,999 SKUs in the tooling and precision sub-assembly category and 760 SKUs in precision-machined parts, supplying to over 26 customers across seven countries.
The company serves customers globally and has clients in the US, Germany, and the UK.
Manufacturing capabilities include advanced machining processes such as turning, milling, double-column milling, electro-discharge machining, and grinding. The assembly centre can handle assemblies up to 10 metres in size and diameters of up to 3 metres.
Assembly expertise includes various types of assemblies, such as interference and transition fits, heli-coil assemblies, smooth sealing applications, and capacities of up to 3,000 components in a single assembly. Additional capabilities include laser tracker calibration, load testing up to 70 tonnes, pressure testing up to 420 bars, balancing to within 1 gram, helium leak detection, and non-destructive testing methods such as ultrasonic, die-penetrant, magnetic particle, fluorescent penetration, and drive mechanism testing.
Fabrication capabilities cover engineering fabrication up to 2 metres and structural fabrication up to 6 metres, performed by AWS and ASME-certified welders. The company also offers special processes such as painting, polymer-based coatings, and NADCAP-certified processes like heat treatment and anodising through third-party vendors.
The company has seen a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 36.35 crore in FY22 to Rs 94.17 crore in FY23 to Rs 208.77 crore in FY24. PAT increased from Rs 3.39 crore in FY22 to Rs 22.81 crore in FY23 to Rs 58.13 crore in FY24.
A substantial portion of the company's revenue comes from the aerospace sector, specifically from manufacturing aero-engine tooling and airframe tooling. The sector contributed Rs 118.54 crore (98.25%) for the six months ending September 30, 2024, and Rs 207.41 crore (99.35%), Rs 89.18 crore (94.70%), and Rs 34.84 crore (95.84%) in FY24, FY23, and FY22, respectively, to the revenue from operations. Any adverse developments in this sector could negatively affect the company’s business operations and financial condition.
The company’s revenue is dependent on a few customers. The company’s top 10 customers contributed Rs 119.56 crore (99.09%) for the six months ending September 30, 2024, and Rs 207.62 crore (99.45%), Rs 92.38 crore (98.11%), and Rs 35.14 crore (96.67%) in FY24, FY23, and FY22, respectively, to the revenue from operations. Any loss of any of these major customers or a decline in purchases from them could adversely affect the company’s operations and finances.
The largest client accounts for a significant portion of the revenue, accounting for 58.89% in the six months ending September 30, 2024, and 59.82%, 59.45%, and 44.47% in FY24, FY23, and FY22, respectively. If the company loses this major client, the revenue from operations could be adversely affected.
Unimech’s business is dependent on exports, which accounted for 95.67% of total revenue for the six months ending September 30, 2024, and 97.64%, 95.20%, and 91.06% in FY24, FY23, and FY22, respectively. The United States alone contributed Rs 99.60 crore (82.55%) for the six months ending September 30, 2024, and Rs 192.46 crore (92.19%), Rs 72.42 crore (76.91%), and Rs 27.76 crore (76.38%) in FY24, FY23, and FY22, respectively. Any adverse developments or changes in these export markets, particularly the USA and Germany, could adversely impact operations and finances.
A major portion of Unimech Aerospace's operations is carried out through its material subsidiary, Innomech Aerospace Toolings Private Limited (“Innomech”). The company is heavily reliant on the operating income generated by Innomech, which contributed Rs 100.70 crore (83.46%) in the six months ending September 30, 2024, and Rs 186.53 crore (89.35%), Rs 69.22 crore (73.50%), and Rs 24.74 crore (68.06%) in FY24, FY23, and FY22, respectively, to the consolidated revenue from operations. A decline in Innomech’s performance or changes in ownership could hurt the company’s financial health.
The company relies on third-party suppliers for raw materials without long-term contracts or exclusive agreements. This exposes it to risks of supply chain disruptions and price volatility, which could affect production, order fulfilment, and profitability. Additionally, advances paid to suppliers may not always be recoverable, further increasing financial risks.
The company, its subsidiaries, directors, and promoters are currently involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
As of October 31, 2024, the company and its material subsidiary had consolidated outstanding borrowings amounting to Rs 75.03 crore. Any inability to repay or service these loans could adversely affect the company’s financial position.
Unimech Aerospace Financials
*All values are in Rs. Cr
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Application Details of Unimech Aerospace IPO
| Apply as | Price band | Apply Range |
|---|---|---|
| Regular | ₹745 - 785 | Upto ₹2 Lakh |
| Employee | ₹745 - 785 | Upto ₹2 Lakh |
| High Networth Individual | ₹745 - 785 | ₹2 - 5 Lakh |
For Unimech Aerospace IPO, eligible investors can apply as Regular & Employee.