Unimech Aerospace IPO: An Opportunity in High-Precision Engineering


Unimech Aerospace and Manufacturing Limited, a leading provider of high-precision engineering solutions, has announced its Initial Public Offering (IPO) to raise ₹500 crore. Known for its expertise in sectors like aerospace, defense, energy, and semiconductors, the company is set to garner significant interest from investors.

IPO Details

  • Total Issue Size: ₹500 crore
    • Fresh Issue: ₹250 crore
    • Offer for Sale (OFS): ₹250 crore
  • Price Band: ₹745 to ₹785 per share
  • Lot Size: 19 shares
  • Minimum Investment: ₹14,155
  • IPO Dates: Opens on December 23, 2024, and closes on December 26, 2024
  • Expected Listing Date: December 31, 2024, on BSE and NSE

Company Overview

Founded in 2016, Unimech Aerospace specializes in manufacturing highly complex components and systems. Its diverse product range includes aero tooling, ground support equipment, precision-engineered sub-assemblies, and custom-machined parts. The company caters to clients across seven countries, including major markets in the USA, Germany, and the UK.

Objectives of the IPO

The fresh issue proceeds will be used for:

  1. Working capital requirements
  2. Expanding manufacturing capabilities through capital investment
  3. Repaying certain existing borrowings

Financial Snapshot

Unimech has demonstrated strong growth over recent years. In the six months leading to September 30, 2024, the company produced thousands of specialized products across its diverse client base, highlighting its strong operational capabilities.

Grey Market Premium (GMP)

As of December 22, 2024, the IPO shares were trading at a ₹480 premium in the grey market, reflecting robust demand and optimism about the company’s potential.

Should You Invest?

With its proven expertise, diversified portfolio, and strong demand in growing industries like aerospace and defense, Unimech Aerospace offers a promising opportunity for investors. However, as with any investment, it is essential to consider market risks and evaluate alignment with personal financial goals before subscribing.

Disclaimer: This article is for informational purposes only. Please consult a financial advisor before making investment decisions.

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