Unimech Aerospace IPO: Defence Company Wins Rs 64,737 Cr Bids On Rs 500 Cr IPO; GMP, Allotment, Listing Date

Unimech Aerospace IPO: The defence and aerospace company has bagged massive bids for its Rs 500 crore initial public offering (IPO). On the final day of its subscription, the IPO bagged a mind-boggling Rs 64,736.88 crore worth of bids across investor categories. Strong demand emerged from qualified institutional buyers and non-institutional investors. The latest grey market premium (GMP) suggests an over 80% potential premium listing on BSE and NSE which is scheduled for later next week.

Unimech Aerospace IPO Subscription Status:

Subscription in Unimech IPO closed on December 26, 2024. After bidding hours, data from NSE revealed that cumulative bids in the IPO were to the tune of Rs 82,46,73,568 equity shares, oversubscribing by 175.31 times from its offered size of 47,04,028 equity shares.

The 100% book building had a price band of Rs 745 per share to Rs 785 per share.

At the upper price band of Rs 785 per share, the IPO has received bids worth Rs 64,736.875 crore against its IPO size of Rs 500 crore, making it one of the best-performing IPOs of 2024.

Unimech IPO was a mixture of a fresh issue worth Rs 250 crore and an offer for sale (OFS) of Rs 250 crore.

The proceeds from the fresh issue will be used for funding CAPEX for expansion through the purchase of machinery and equipment; additionally would also fund for working capital requirements. The company also plans to invest in its material subsidiary for the purchase of machinery and equipment, working capital and repayment of debts. Lastly, a part of the proceeds will be used for general corporate purposes.

Unimech Aerospace IPO GMP Today:

As per Investor Grain, Unimech Aerospace IPO's last GMP is ₹630, last updated Dec 26th 2024 05:23 PM. With a price band of 785.00, Unimech Aerospace IPO's estimated listing price is ₹1415 (cap price + today's GMP). The expected percentage gain/loss per share is 80.25%.

Unimech Aerospace IPO Allotment, Listing Details:

After the IPO, the basis of allotment will take place on December 27. While initiation of refunds or credit of shares to demat accounts will take place on December 30, 2024. Lastly, Unimech Aerospace will debut on BSE and NSE on December 31.

Unimech Aerospace IPO Review:

According to Choice Broking, UAML 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. It possesses "build to print" capabilities, wherein it manufactures products based on client designs, and "build to specifications" capabilities, wherein it assists clients in designing the products to be manufactured based on specifications.

Further, the brokerage stated that at the upper end of its price range, UAML is demanding a P/E multiple of 68.7x, based on its FY24 EPS of Rs. 11.4, and an EV/Sales
multiple of 18.0x, this valuation seems to be at a discount compared to its peers. The company has experienced a significant increase in both its top and bottom lines, driven by expanded capacity and rising customer revenue, resulting in improved margins. Looking forward, we believe UAML holds strong long-term growth potential through global expansion.

Unimech Aerospace is a global high-precision engineering solutions company specializing in manufacturing of complex products for major original equipment manufacturers (OEMs) and their licensees worldwide in aerospace, defence, energy, and semiconductor industries.