Unimech Aerospace IPO listing: Unimech Aerospace share price saw a stellar debut on the Indian stock exchanges on Tuesday, December 31. The stock opened at ₹1,491 on the BSE with a solid premium of 90 per cent with respect to the issue price of ₹785 per share. On the NSE, the stock opened at ₹1,460, at a premium of 86 per cent.
The stock's listing exceeded expectations even though the grey market expected it to list at a premium. Unimech Aerospace stock's grey market premium on Tuesday morning was ₹625, indicating an 80 per cent listing premium.
The stock, however, cooled off slightly in a weak market. Around 10:05 AM, Unimech Aerospace share price traded at ₹1,400 on the BSE, up 78 per cent against the issue price.
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The ₹500-crore Unimech Aerospace IPO opened for subscription on December 23 and closed on December 26. Shares allotment was finalised on December 27.
Unimech Aerospace and Manufacturing Ltd is an engineering solutions provider specialising in the manufacturing and supply of critical parts such as aero tooling, ground support equipment, electro-mechanical sub-assemblies, and other precision-engineered components for the aerospace, defence, energy, and semiconductor industries.
The IPO comprised 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 IPO price band is set at ₹745 to ₹785 per share.
The company said it will use the net proceeds from the fresh issue to fund capital expenditure for expansion by purchasing machinery and equipment and meet its working capital requirements.
A portion of the proceeds is intended to be invested in its material subsidiary to purchase machinery and equipment, fund its working capital needs, and repay or prepay certain borrowings availed by the subsidiary, either in full or in part. The remaining funds will be allocated for general corporate purposes, as per the company's RHP.
The mainboard IPO was subscribed 175.31 times, receiving bids for 82.46 crore shares against 47.04 lakh on the offer. The retail investors portion was subscribed 56.74 times, while the non-institutional investors (NII) category was booked 263.78 times. The qualified institutional buyers (QIB) category received 317.63 times subscriptions, and the employees' portion saw 97.81 times subscriptions.
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