Unimech Aerospace IPO subscribed 3.81 times on Day 1. Check GMP, review, other details

The initial public offering (IPO) of Unimech Aerospace, which opened for subscription earlier on Monday, sailed through on the first day of the bidding process. It was subscribed 3.81 times at the closing time.

The issue attracted a robust demand from retail and non-institutional investors, getting subscribed 4.45 times by the former and 4.02 times by the latter. The qualified institutional buyers' (QIBs') quota was booked 2.49 times as the consolidated share bid received stood at 33.38 lakh versus 13,38,255 shares reserved from them.

Unimech Aerospace IPO: price band

The company has fixed a price band of Rs 745-785 per share, where investors can bid for 19 shares in one lot and in multiples thereafter.

Unimech Aerospace IPO: GMP today

Ahead of the issue opening, Unimech Aerospace had a GMP of Rs 480 in the unlisted market, which indicates a premium of 61% over the issue price.

Unimech Aerospace IPO: Preview

Analysts advised investors to subscribe to the issue as the company's focus on manufacturing critical components positions it favorably to meet increasing demand from global original equipment manufacturers (OEMs).

Also Read: IPO Calendar: 3 new issues, 8 listings investors need to watch out for next week "Unimech Aerospace’s

IPO presents an appealing opportunity for investors in the engineering and aerospace sectors, given its competitive valuation metrics and growth prospects," said Canara Bank Securities while assigning a subscribe rating.

About Unimech Aerospace IPO

Unimech is an engineering solutions company specializing in manufacturing and supply of critical parts such as aero tooling, ground support equipment, electro-mechanical sub-assemblies and other precision engineered components for aerospace, defence, energy, and semiconductor industries.

The company possesses “build to print” capabilities, wherein we manufacture products based on client designs, and “build to specifications” capabilities, wherein it assists clients in designing the products to be manufactured based on specifications. It also supplies high precision and critical components to major OEMs and their licensees worldwide.

The company works with energy, defence and semiconductor OEMs (original equipment manufacturers) and has a presence in the US, Europe and the UK as an export-oriented company.

For the year ending March 2024, the company's revenue from operations more than doubled to Rs 209 crore, while profit also rose over 100% to Rs 58 crore.

Over the past two years, the company has demonstrated robust financial performance, with a compound annual growth rate (CAGR) of 140% in revenue, 220% in EBITDA, and 314% in PAT.

Unimech Aerospace IPO: Opening Date, Allotment and Listing Date

Unimech Aerospace IPO will open up for public subscription on December 23 with the issue closing on December 26. Meanwhile, the allotment for the IPO is expected to be finalised on December 27 and the listing of shares will be on December 31.

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