Unimech Aerospace and Manufacturing IPO: Price band set at ₹745-785 per share

The company plans to raise ₹500 crore through the offering, which includes a fresh issue of 0.32 crore shares worth ₹250 crore and an offer for sale (OFS) of an equal number of shares

Unimech Aerospace and Manufacturing has set the price band for its initial public offering (IPO) at ₹745-785 per share, aiming to raise ₹500 crore through the offering. The IPO will open for bidding on Monday, December 23, and close on Thursday, December 26, 2024. The offering will be divided into three portions: 50% reserved for Qualified Institutional Buyers (QIBs), 35% for Retail Investors, and 15% for Non-Institutional Investors (NIIs).

The net proceeds from the fresh issue will be primarily utilized to fund the company’s capital expenditure for expanding its operations, including the purchase of machinery and equipment. Furthermore, funds will be allocated to meet working capital requirements and invest in a material subsidiary for similar purposes, including repaying or prepaying certain borrowings. The remaining funds will be used for general corporate purposes, as outlined in the company’s Red Herring Prospectus (RHP).

The share allotment process for the Unimech Aerospace IPO is expected to be finalized on Friday, December 27, 2024, with tentative listing scheduled for Tuesday, December 31, 2024, on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Retail investors can bid for a minimum of one lot, which consists of 19 shares, requiring a minimum investment of ₹14,915.

About Unimech Aerospace

Unimech Aerospace is a leading provider of high-precision engineering solutions, specializing in manufacturing complex products through “build to print” and “build to specifications” offerings. These processes involve machining, fabrication, assembly, testing, and the creation of new products tailored to the specific needs of clients in aerospace, defense, energy, and semiconductor industries.

The company’s extensive product portfolio includes engine lifting and balancing beams, assembly and disassembly tools, ground support equipment, airframe assembly platforms, engine transportation stands, and precision mechanical and electro-mechanical turnkey systems. As of March 31, 2024, Unimech Aerospace operates two manufacturing facilities in Bangalore, covering over 120,000 sq. ft. of space, as per its RHP.