Unimech Aerospace IPO: A Deep Dive into the Company, Financials, and Growth Prospects

Unimech Aerospace, a leading provider of high-precision engineering solutions, is all set to launch its initial public offering (IPO) on December 23, 2024.

Unimech Aerospace IPO: Key Details, Manufacturing Capabilities, and Global Opportunities

Unimech Aerospace, a leading provider of high-precision engineering solutions, is all set to launch its initial public offering (IPO) on December 23, 2024, with the subscription window closing on December 26. The company aims to raise ₹500 crore through this offering, which includes a fresh issue of ₹250 crore and an offer for sale (OFS) by the selling shareholder of ₹250 crore. The IPO’s price band is set between ₹745 and ₹785 per share.

Anand Rathi Securities and Equirus Capital Private are the book-running lead managers for the issue, and KFin Technologies will act as the registrar.

About Unimech Aerospace

Unimech Aerospace specializes in the manufacturing of complex products and engineering solutions for sectors like aerospace, defense, energy, and semiconductors. The company offers a range of services, from machining and fabrication to testing and assembly, tailored to the specific needs of global clients.

The company’s product range includes high-precision components such as engine lifting and balancing beams, calibration tooling, and ground support equipment. It has established a global presence, serving over 26 customers across seven countries.

Unimech Aerospace operates two manufacturing facilities in Bangalore, spread over 120,000 sq. ft. Its facilities are strategically located in key areas like Peenya and near the Bangalore International Airport.

The company boasts significant manufacturing capabilities, having produced over 2,350 SKUs in tooling and precision sub-assemblies and over 620 SKUs in precision machined parts. Its comprehensive capabilities in design, engineering, and quality assurance make it a key player in the aerospace and defense industries.

Unimech Aerospace is well-positioned in both aerospace and defense sectors, catering to global OEMs and approved licensees. The aerospace industry, particularly in the Asian region, is expected to experience substantial growth, with nearly 12,000 new aircraft anticipated by 2042.

The company is also benefiting from the increasing global focus on renewable energy and the expansion of India’s nuclear power capacity, offering further growth opportunities.

A significant portion of its revenue—over 90% in the last three years—comes from international sales, primarily from its top 10 customers.

As of March 2024, Unimech Aerospace had a total order book of ₹1,834.9 crore, providing strong revenue visibility for the upcoming financial year.

Investors are advised to thoroughly assess the risks and consult certified experts before making any investment decisions.