Unimech Aerospace and Manufacturing announced the price band for its initial public offering (IPO), poised to open for public subscription on Monday, December 23, at ₹745 to 785 per share.
Following the announcement of the price band, the grey market premium (GMP) for the public issue stood at ₹405 per share on Thursday, December 19. The GMP for the Unimech Aerospace IPO jumped to ₹405, from its previous level of ₹0 or nil.
At the upper price band for the public issue of ₹785 apiece, the shares are expected to list at ₹1,190 per share, a premium of 52 per cent, according to data collected from Investorgain.com.
The grey market premium (GMP) is an indicator of investors' willingness to pay more for a public issue than its offered price.
Unimech Aerospace IPO Details
Unimech Aerospace and Manufacturing IPO is a mix of fresh issue and offer for sale (OFS). The IPO consists of a fresh issue of 32 lakh equity shares worth ₹250 crore and an offer-for-sale (OFS) of 32 lakh equity shares, also aggregating to ₹250 crore. The company aims to raise ₹500 crore via the IPO.
The company has reserved 50 per cent of the total offering for Qualified Institutional Buyers (QIBs), 35 per cent for retail investors, and 15 per cent for Non-Institutional Investors (NIIs).
Unimech Aerospace IPO is offering shares in a lot size of 19 shares and its multiples thereof.
The company aims to use the money raised for the fresh issue to fund capital expenditure for expansion by purchasing machinery and equipment, as well as to meet its working capital requirements.
Anand Rathi Securities and Equirus Capital Private are the book runners for the public issue, while KFin Technologies is the registrar for the offer. The IPO is expected to list on the stock market on Tuesday, December 31.
About Unimech Aerospace
Unimech Aerospace is a global high-precision engineering solutions provider specializing in the manufacturing of complex products through "build to print" and "build to specifications" offerings.
The company is involved in machining, fabrication, assembly, testing, and the creation of new products tailored to client requirements. Unimech has clients from the aerospace, defence, energy, and semiconductor industries.
As of March 31, 2024, Unimech Aerospace operated two manufacturing facilities, Unit I and Unit II, located in Bangalore, spanning a total area of over 120,000 sq. ft., according to the draft papers filed with the Securities and Exchanges Board of India (SEBI).
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