Unimech Aerospace IPO: Detailed Analysis and Key Insights
Unimech Aerospace and Manufacturing Limited has launched its IPO, drawing significant attention due to its promising growth trajectory and niche market focus. Here’s a detailed breakdown of everything you need to know about the Unimech Aerospace IPO.
Unimech Aerospace IPO Details
| Details | Key Information |
|---|---|
| IPO Size | ₹500 Crore |
| Fresh Issue | ₹250 Crore (31.84 lakh shares) |
| Offer for Sale (OFS) | ₹250 Crore (31.84 lakh shares) |
| Price Band | ₹745 to ₹785 per share |
| Lot Size | 19 shares (₹14,155 – ₹14,915 minimum investment) |
| Opening Date | December 23, 2024 |
| Closing Date | December 26, 2024 |
| Listing Date | December 31, 2024 (Expected) |
| Stock Exchanges | BSE and NSE |
| Registrar | Kfin Technologies Limited |
Unimech Aerospace IPO Subscription Status
The Unimech Aerospace IPO received an overwhelming response, with subscriptions far exceeding expectations.
| Investor Category | Times Subscribed |
|---|---|
| Qualified Institutional Buyers (QIB) | 334.68x |
| Non-Institutional Investors (NII) | 277.55x |
| Retail Investors (RI) | 59.19x |
| Overall Subscription | 184.34x |
Company Profile and Business Model
Unimech Aerospace, headquartered in Bangalore, specializes in providing high-precision engineering solutions to the aerospace and defense sectors.
Key Highlights
- Year of Incorporation: 2016
- Manufacturing Facilities: Two state-of-the-art units covering 120,000 sq. ft.
- Markets Served: India and exports to 7 countries
- Product Categories:
- Aero Engine Tooling: Engine lifting beams, oil tube alignment fixtures.
- Airframe Tooling: Spar assemblies, drill jigs, and check fixtures.
- Precision Parts: Missile components and subsystems.
| Product Category | Examples |
|---|---|
| Aero Engine Tooling | Engine lifting beams, oil tubes |
| Airframe Tooling | Drill jigs, spar assemblies |
| Precision Parts | Missile components, subsystems |
Financial Performance
Unimech Aerospace has demonstrated impressive growth, supported by strong financials and a robust business model.
| Metric | FY22 | FY23 | FY24 (Estimated) |
|---|---|---|---|
| Revenue (₹ Crore) | ₹80 | ₹180 | ₹400 |
| Profit After Tax (PAT) | ₹22.2 | ₹56.7 | ₹145.8 |
| PAT Margin | 27.75% | 28.05% | 27.85% |
| Return on Equity (ROE) | 45.12% | 48.32% | 53.53% |
| Debt-to-Equity Ratio | 0.42 | 0.36 | 0.32 |
IPO Objective
| Purpose | Utilization (₹ Crore) |
|---|---|
| Expansion of manufacturing capacity | ₹120 |
| Working capital requirements | ₹80 |
| Investment in subsidiaries | ₹30 |
| Debt repayment | ₹20 |
| General corporate purposes | ₹50 |
The funds raised will allow Unimech Aerospace to expand its production capabilities, repay debt, and enhance its competitiveness in the aerospace and defense markets.
Promoter Details
The company is backed by experienced promoters who hold significant stakes:
- Anil Kumar P
- Ramakrishna Kamojhala
- Mani P
| Promoter Stakeholding | Pre-IPO (%) | Post-IPO (%) |
|---|---|---|
| Promoters | 91.83% | 79.82% |
| Public | 8.17% | 20.18% |
Anchor Investor Allocation
The company raised ₹149.55 crore from anchor investors before the IPO launch. Shares allotted to anchor investors are locked for a period ranging from 30 to 90 days, providing stability to the stock post-listing.
Should You Invest in Unimech Aerospace IPO?
Here are the key factors to consider:
Pros:
- Niche market focus with strong demand in the aerospace and defense sectors.
- Robust financial performance with high margins and ROE.
- Strong promoter background and global presence.
Cons:
- Fully priced IPO at a P/E ratio of ~28x.
- High dependency on government and defense contracts.
Conclusion
Unimech Aerospace IPO has garnered significant attention due to its strong fundamentals, high growth potential, and focus on a niche market. Investors with a medium- to long-term horizon may consider participating in the IPO, but it’s important to evaluate personal risk tolerance before investing.
For more information, visit the official website: Unimech Aerospace or refer to the IPO prospectus.
