Unimech Aerospace IPO to Open on December 23; Price Band Set at ₹745-785

The Unimech Aerospace and Manufacturing Limited IPO is set to open for subscription on December 23, 2024, and will remain open until December 26, 2024.

The Unimech Aerospace and Manufacturing Limited IPO is set to open for subscription on December 23, 2024, and will be available for three days, closing on December 26, 2024. The company aims to raise ₹500 crore through this IPO, which will include both fresh issue shares and an Offer for Sale (OFS).

Here's a summary of the key details regarding the Unimech Aerospace IPO:

The price band for the Unimech Aerospace IPO has been set between ₹745 and ₹785 per share, with a minimum lot size of 19 shares. This translates to a minimum investment amount of ₹14,915 for retail investors.

The Unimech Aerospace IPO is already generating strong interest in the grey market, with a GMP (Grey Market Premium) of ₹405, which signifies a premium of 51.5% over the issue price. This strong premium indicates positive investor sentiment and suggests that the IPO could perform well upon listing.

Unimech Aerospace and Manufacturing is a leading company in the aerospace industry, specializing in mechanical assembly, electro-mechanical systems, and components for aero-engine and airframe production. The company provides “build to print” and “build to specification” solutions, offering complex product manufacturing in sectors such as aerospace, defense, energy, and semiconductors.

Unimech is focused on delivering products based on clients' specific needs, providing machining, manufacturing, assembly, testing, and new product development tailored to these industries.

Financially, Unimech Aerospace has seen strong growth. For the year ending March 31, 2024, the company saw a 125% increase in revenue and a 155% rise in Profit After Tax (PAT) compared to the previous fiscal year. Unimech reported a revenue of ₹213.79 crore and a PAT of ₹58.13 crore for FY24. As of September 30, 2024, the company had a revenue of ₹127.58 crore and a PAT of ₹38.68 crore.

The net proceeds from the IPO will be utilized by Unimech for several purposes, including the purchase of machinery and equipment, meeting working capital requirements, repaying certain debts, and funding general corporate purposes.

This IPO provides an opportunity for investors to gain exposure to the rapidly growing aerospace sector. With a solid financial track record and a significant grey market premium, this IPO is attracting attention and could be a strong investment option for those interested in a high-growth industry.