Today, December 23, 2024, marks the launch of Unimech Aerospace’s initial public offering (IPO). The manufacturing company, based in Bengaluru, specializes in the production of complex products. The company plans to raise ₹500 crore, with the offering consisting of a fresh issue of ₹250 crore and an equal amount through an offer for sale by existing shareholders. Shares are priced between ₹745 and ₹785, with bidding allowed in lots of 19 shares. Investors can subscribe until December 26, 2024, with the company’s listing expected by December 31, 2024.
Market analysts have observed a grey market premium (GMP) of ₹480 per share, signaling potential listing gains of up to 61% above the upper price band.
Unimech Aerospace has reported impressive growth, doubling its revenue to ₹209 crore in FY24 compared to the previous year, with profits reaching ₹58 crore. Analysts recommend subscribing to the IPO, highlighting the company’s strong financial performance and significant presence in high-precision industries such as aerospace, defense, and semiconductors.
However, investors are advised to consider the firm’s client dependency, with the top five customers contributing over 94% of its revenue in the first half of FY25. Despite this, Unimech’s partnerships with major OEMs and diversified offerings provide a competitive edge.
The IPO is structured with 50% reserved for institutional investors, 35% for retail investors, and the remaining 15% for non-institutional participants. As always, potential investors should evaluate the company’s prospects and market conditions before making investment decisions.
