The initial public offering of Unimech Aerospace and Manufacturing saw a tumultuous response from all category investors, as the issue was subscribed 175.31 times on the last day of issue closing on Thursday. The ₹500-crore issue generated bids worth ₹64,731 crore.
The IPO of the engineering solutions company that opened on Monday, featured a price band of ₹745-785. The IPO comprised ₹250 crore worth of fresh issues and an equal amount of offer-for-sale by promoters and selling shareholders.
The issue attracted bids of 82.46 crore shares compared to the offered 47.04 lakh shares. The retail and HNI portions were subscribed 56.74 times and 263.79 times, respectively, while the qualified institutional buyers’ quota saw a whopping subscription of 317.63 times. The employee quota (20,134 shares) received bids for 97.80 times.
Unimech Aerospace and Manufacturing secured ₹149.55 crore from anchor investors, ahead of the IPO. Foreign and domestic institutions that participated in the anchor book 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, and others.
Funds raised from issues will be used for capital expenditure (expansion through the purchase of machinery and equipment); working capital requirements; investment in material subsidiary for – purchase of machinery and equipment, funding its working capital requirements; and repayment/prepayment, in full or part, of certain borrowings availed by it; and general corporate purposes
The company’s niche focus on aerospace and defence, export-driven model, and planned capacity expansions position it well for growth in high-potential sectors like semiconductors and renewable energy, making it a promising long-term investment.
Incorporated in 2016 Unimech’s product range 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.