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PremiumUnimech Aerospace IPO Day 3 Highlights: The initial public offering (IPO) of engineering solutions company Unimech Aerospace and Manufacturing opened for public subscription on December 23 and will close on December 26. Unimech Aerospace and Manufacturing has raised ₹149.5 crore via its anchor book, which was initiated on December 20, prior to its IPO opening. The public offer has entered its third and the last day of the bidding process today. Unimech Aerospace IPO price band has been set at ₹745-785 per share. The comapny plans to raise ₹500 crore from the book-built issue which consists of a fresh equity issuance of up to ₹250 crore alongside an offer for sale (OFS) not exceeding ₹250 crore by selling shareholders from the promoter and promoter group. In the OFS, Ramakrishna Kamojhala, Rajanikanth Balaraman, Preetham S V, and Rasmi Anil Kumar will be divesting a portion of their stakes.
Unimech Aerospace IPO Live: Unimech Aerospace IPO has entered its third and the last day of the bidding princess today, December 26. Applicants will now have only one day left to apply for Unimech Aerospace IPO. The public issue has been subscribed 9.08 times in total so far during the first two days. The Non-Institutional Investors (NII) portion has been subscribed 12.06 times, followed by the retail investor portion at 10.29 times. The Qualified Institutional Buyers (QIBs) portion has been booked 4.64 so far.
Unimech Aerospace IPO Live: As of December 24, 5:30 p.m., the grey market premium of Unimech Aerospace stands flat at ₹510 per share after the second day of public bidding.
With the upper price band at ₹785, the shares are expected to be listed at ₹1,295, a premium of 64.97 per cent, according to data collected from Investorgain.com.
Unimech Aerospace IPO Live: The Non-Institutional Investors (NII) portion of the Unimech Aerospace public issue was subscribed 12.07 times, followed by the retail investor portion at 10.30x.
The Qualified Institutional Buyers (QIBs) portion followed the NII and retail investor lead, coming in at 4.64x on the second day.
Unimech Aerospace IPO Live: The public issue of Unimech Aerospace was subscribed 9.09x on the final day of public bidding. Investors subscribed for 4,27,66,226 shares, compared to the 47,04,028 shares available.
Unimech Aerospace IPO Live: The public issue of Unimech Aerospace has received 9.01x subscriptions on the second day. Investors have subscribed for 4,23,80,336 shares, compared to the 47,04,028 shares available.
The NII portion is leading the bidding round on the second day at 11.92x subscription. The retail investors have followed the NII lead, currently at 10.21x bids. The Qualified Institutional Buyers (QIBs) portion has been subscribed 4.63x the shares on offer.
Unimech Aerospace IPO Live: The public issue of Unimech Aerospace has received 8.43x subscriptions on the second day. Investors have subscribed for 3,96,60,980 shares, compared to the 47,04,028 shares available.
The NII portion is leading the bidding round on the second day at 10.46x subscription. The retail investors have followed the NII lead, currently at 9.70x bids. The Qualified Institutional Buyers (QIBs) portion has been subscribed 4.59x the shares on offer.
Unimech Aerospace IPO Live: As of December 24, the grey market premium (GMP) for the public issue stands at ₹510 per share. With the upper price band at ₹785, the shares are expected to be listed at ₹1,295 apiece, a premium of 64.97%.
Grey market premium (GMP) is the investors' willingness to pay more for a public issue. The GMP for the issue rose to ₹510, compared to its earlier level of ₹480 on December 23.
Unimech Aerospace IPO Live: The public issue of Unimech Aerospace has received 7.88x subscription so far on the second day. Investors have subscribed for 3,70,69,931 shares, compared to the 47,04,028 shares available.
The NII portion is leading the bidding round on the second day at 9.53x subscription. The retail investors have followed the NII lead, currently at 9.06x bids. The Qualified Institutional Buyers (QIBs) portion has been subscribed 4.49x the shares on offer.
The Unimech Aerospace IPO has been subscribed 7.74 times as of December 24, 2024, at 1:54:14 PM (Day 2). The retail category led the demand with an 8.94 times subscription, followed by the non-institutional investors (NII) segment at 9.23 times. The qualified institutional buyers (QIB) category recorded a subscription of 4.43 times, reflecting strong interest across investor segments.
Unimech Aerospace's IPO has seen robust demand, achieving an overall subscription of 8.32x times by Day 2, December 24, 2024, at 1:04:15 PM.
Unimech Aerospace's IPO saw strong demand, with an overall subscription of 6.64 times. As of December 24, 2024, at 12:29:15 PM (Day 2), the retail investor category was subscribed 7.82 times, the qualified institutional buyers (QIB) category registered 3.74 times subscription, and the non-institutional investors (NII) category was subscribed 7.65 times.
Unimech Aerospace's IPO has received significant interest, with an overall subscription of 5.97 times. As of December 24, 2024, at 11:24:13 AM (Day 2), the retail investor category was subscribed 6.96 times, the qualified institutional buyers (QIB) category saw 3.62 times subscription, and the non-institutional investors (NII) category recorded 6.71 times subscription.
Employee Quota: Oversubscribed 6.48 times with bids for 1,30,530 shares.
Retail Individual Investors (RIIs): Oversubscribed 4.46 times with bids for 1,04,50,988 shares.
Non-Institutional Investors (NIIs): Oversubscribed 4.03 times with bids for 40,46,335 shares.
Qualified Institutional Buyers (QIBs): Oversubscribed 2.49 times with bids for 33,28,249 shares.
The share sale offer is scheduled to conclude on December 26, 2024.
Unimech Aerospace IPO Day 1 Live Updates: As of December 23, the grey market premium (GMP) for Unimech Aerospace's public issue stands at ₹480 per share. With the upper price band at ₹785, the shares are expected to be listed on the stock market at ₹1,265 apiece, a premium of 61.15%.
Grey market premium (GMP) is the investors' willingness to pay more for a public issue.
Unimech Aerospace IPO Day 1 Live Updates: The public issue of Unimech Aerospace was subscribed 3.82x on the first day. Investors subscribed for 1,79,56,102 shares, compared to the 47,04,028 shares on offer.
The retail investors led the bidding round on Monday, December 23, coming in at 4.46x the shares on offer. Non-Institutional Investors (NIIs) followed the retail lead subscribing 4.03x, the Qualified Institutional Buyers (QIBs) booked 2.49x the shares available on Day 1.
The initial public offer of Unimech Aerospace IPO has been subscribed 3.54x on the first day of subscription today, at 16:36 IST, as per BSE data.
The initial share sale received bid for 1,66,41,606 shares against 47,04,028 shares on offer, according to BSE.
The portion for retail investors received 4.17x subscription while the quota for non-institutional investors got subscribed 3.41x. The qualified institutional buyers (QIBs) part is booked 2.49x. The employee portion has been subscribed 5.76x.
As the aerospace sector anticipates growth, Unimech’s focus on manufacturing critical components positions it favorably to meet increasing demand from global original equipment manufacturers (OEMs). The proceeds from the IPO are earmarked for capital expenditures and working capital needs, enhancing its production capabilities and market reach. Overall, Unimech Aerospace’s IPO presents an appealing opportunity for investors in the engineering and aerospace sectors, given its competitive valuation metrics and growth prospects.
The global aircraft Maintenance, Repair and Overhaul (MRO) market is a vital sector supporting the safety, reliability, and efficiency of commercial aircraft. The commercial aircraft MRO activities can be categorized into four main types, such as engine, airframe, line maintenance and component maintenance.
The Engine MRO segment accounted for ~46% of the total MRO revenue in FY23 and is expected to grow to 49% by FY28. In absolute terms, the share of engine MRO stood at USD 42.8 bn in FY23 and is expected to grow at a CAGR of 4.5% between FY23-FY28P to reach USD 53.2 bn by FY28.
The initial public offer of Unimech Aerospace IPO has been subscribed 2.54x on the first day of subscription today, at 15:12 IST, as per BSE data.
The initial share sale received bid for 1,19,48,644 shares against 47,04,028 shares on offer, according to BSE.
The portion for retail investors received 3.37x subscription while the quota for non-institutional investors got subscribed 2.54x. The qualified institutional buyers (QIBs) part is booked 1.06x. The employee portion has been subscribed 4.87x.
The company is one of the leading exporters of aerospace components, catering to a global customer base across USA, Germany and United Kingdom. As of 1HFY25/FY24, export sales accounted for ~96%/98% of the total revenue, of which the share of sales to USA based customers stood at ~83%/92% respectively.
We assign “Subscribe" rating to this IPO as the company has advanced manufacturing capabilities and capable of delivering high precision engineering solutions. Also, it is available at reasonable valuation as compared to its peers.
Between FY 2022- and six-months period ended September 30, 2024, company has manufactured 2,999 SKUs in tooling and precision complex sub-assemblies’ category and 760 SKUs in the precision machined parts category, supplying to more than 26 customers across 7 countries.
The initial public offer of Unimech Aerospace IPO has been subscribed 1.26x on the first day of subscription today, at 12:45 IST, as per BSE data.
The initial share sale received bid for 59,19,450 shares against 47,04,028 shares on offer, according to BSE.
The portion for retail investors received 1.92x subscription while the quota for non-institutional investors got subscribed 1.35x. The qualified institutional buyers (QIBs) part is yet to be booked. The employee portion has been subscribed 3.08x.
As of March 31, 2024, the company operates two manufacturing facilities in Bangalore, covering a total area of over 1,20,000 sq ft. Unit I, located in Peenya, spans over 30,000 sq ft, while Unit II, situated in a Special Economic Zone near Bangalore International Airport, covers over 90,000 sq ft. These facilities are registered with ISO.
Unimech is the fastest-growing company in its sector, having recorded an impressive compound annual growth rate (CAGR) of 139.7% in revenue between FY22 and FY24. Their EBITDA saw a remarkable growth rate of 220.2% during the same period. Additionally, Unimech achieved the third-highest PAT margin of approximately 27.9% in FY24, up from 24.2% in FY23. The issue is valued at a price-to-earnings (P/E) ratio of 59.3x on the upper price band based on FY24 earnings, which is comparatively lower than its peers. Considering the company's strong financial performance, industry tailwinds & attractive valuation, we recommend a "SUBSCRIBE" rating for this issue.
The company’s strong financial performance is driven by operational efficiency, and global OEM partnerships. With a revenue CAGR of 140% (FY22-24), industry-leading EBITDA margin of 38%, and ROCE of 57.6%, it outperforms peers in growth and profitability. While its valuation multiples EV/EBITDA of 51x and P/E of 69x are more reasonable than its competitors, they reflect its strong fundamentals and growth potential. Thus we recommend subscribing to the issue.
The initial public offer of Unimech Aerospace IPO has been subscribed 6% on the first day of subscription today, at 10:15 IST, as per BSE data.
The initial share sale received bid for 2,75,766 shares against 47,04,028 shares on offer, according to BSE.
The portion for retail investors received 8% subscription while the quota for non-institutional investors got subscribed 9%. The qualified institutional buyers (QIBs) part is yet to be booked. The employee portion has been subscribed 7%.
The IPO consists of a combination of a new issue of up to ₹ 2,500 million and a sale offer of up to ₹ 2,500 million. The funds raised from the new issue, amounting to ₹363.66 million, will be allocated towards the Company's capital expenditure for expansion through the acquisition of machinery and equipment; ₹ 252.85 million will be dedicated to meeting the Company's working capital needs; ₹ 438.91 million will be utilized for capital expenditure on the material subsidiary's expansion through machinery and equipment purchases; ₹ 447.15 million will be directed towards the working capital requirements of the material subsidiary; and ₹ 400 million will be used to fully or partially repay or prepay certain borrowings of the material subsidiary, as well as for general corporate purposes.
Unimech offers a diverse range of products, including engine lifting and balancing beams, tools for assembly, disassembly, and calibration, ground support equipment, platforms for airframe assembly, stands for engine transportation, mechanical and electro-mechanical turnkey systems, and precision components.
Located in Bengaluru, the company plays a crucial role in the global supply chain for aerospace, defense, semiconductor, and energy OEMs along with their licensees, supplying essential parts such as aero tooling, ground support equipment, electro-mechanical sub-assemblies, and other precision-engineered components. Its primary clients consist of some of the leading airframe and aero-engine OEMs and their approved licensing partners.
Engineering solutions provider Unimech Aerospace and Manufacturing has raised ₹149.5 crore via its anchor book initiated on December 20, prior to its IPO. In a filing to the exchanges on Friday, the company stated it has completed the allocation of 19.05 lakh equity shares to anchor investors at a price of ₹785 per share.
"Of the total 19.05 lakh shares allocated to anchor investors, 10.16 lakh shares were distributed among 7 domestic mutual funds across 10 different schemes," it noted.
Unimech Aerospace IPO GMP today is +480. This indicates Unimech Aerospace share price was trading at a premium of ₹480 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Unimech Aerospace share price is indicated at ₹1,265 apiece, which is 61.15% higher than the IPO price of ₹785.
According to the last eight sessions of grey market activities, today's IPO GMP is trending upwards and is anticipated to have a robust listing. The minimum GMP recorded is ₹0, while the maximum stands at ₹480, as per insights from experts at investorgain.com.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
