Unimech Aerospace IPO: Unimech Aerospace and Manufacturing Ltd raised ₹149.5 crore from anchor investors head of its IPO subscription opening for bidding. The initial public offering (IPO) of the complex tool maker company for aero-engine and airframe production will open for its three-day subscription period on Monday, December 23 and close on Thursday, December 26, 2024.
According to a BSE circular, Unimech Aerospace IPO allocated 19,05,094 equity shares at Rs. 785 per share (including share premium of Rs. 780 per equity share) on Friday, December 20, 2024, to the 18 anchor investors. The funds were raised at the upper limit of the ₹745- ₹785 price band.
Foreign and domestic Institutions who participated in the anchor included Goldman Sachs India Equity Portfolio, ICICI Prudential Transportation and Logistics Fund, Tata India Innovation Fund, Motilal Oswal, Edelweiss Trusteeship, Ashoka India Investment Fund, Abakkus Diversified Alpha Fund-2, VQ Fastercap Fund HSBC Flexi Cap, Copthall Mauritius, Clarus Capital etc.
Unimech Aerospace IPO received very strong interest from, global and domestic institutions. Out of the total allocation of 1,905,094 equity shares to the anchor investors, 10,16,215 equity shares (i.e. 53.34 per cent of the total allocation to anchor investors) were allocated to seven domestic mutual funds through a total of 10 schemes.
Unimech Aerospace aims to raise ₹500 crore through the offering, which comprises a fresh issue of 0.32 crore shares worth ₹250 crore and an offer for sale of 0.32 crore shares, also aggregating to ₹250 crore. The price band has been set at ₹745-785 per share. Of the total offering, 50 per cent is reserved for qualified institutional buyers, 35 per cent for retail investors, and 15 per cent for non-institutional investors.
Anand Rathi Advisors Limited, and Equirus Capital Private Limited are the book-running lead managers, and KFin Technologies Limited is the registrar of the issue. Retail investors can apply for a minimum of 19 shares in one lot and its multiples thereafter. At the upper end of the IPO price band, retail investors are required to make a minimum investment of ₹14,915 per lot.
Unimech Aerospace IPO is offering shares in a lot size of 19 shares and its multiples thereof. The company intends to utilise the net proceeds from the fresh issue to fund capital expenditure for expansion by purchasing machinery and equipment, as well as to meet its working capital requirements.
Additionally, a portion of the proceeds will be invested in its material subsidiary for purchasing machinery and equipment, funding its working capital needs, and repaying or prepaying certain borrowings availed by the subsidiary, either in full or in part.
The remaining funds will be allocated for general corporate purposes The allotment of shares for the Unimech Aerospace IPO is expected to be finalised on Friday, December 27, 2024. Tentative listing on both the BSE and NSE is scheduled for Tuesday, December 31, 2024.
Also Read: Unimech Aerospace IPO opens next week. GMP, date, price, other details about upcoming IPO
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. These processes involve machining, fabrication, assembly, testing, and the creation of new products tailored to the specific requirements of clients in the aerospace, defense, energy, and semiconductor industries.
The company’s diverse product portfolio includes engine lifting and balancing beams, assembly, disassembly, and calibration tooling; ground support equipment; airframe assembly platforms; engine transportation stands; mechanical and electro-mechanical turnkey systems; and precision components.
Anil Kumar P, Ramakrishna Kamojhala, Mani P, Rajanikanth Balaraman and Preetham SV are the promoters of the company. 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.
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