Unimech Aerospace IPO subscribed 7.59 times so far on day 2; check offer size, price band and other key details

Unimech Aerospace and Manufacturing IPO was subscribed 7.59 times so far on the second day of bidding on Tuesday, December 24, driven by non-institutional investors (NIIs).

The precision engineering solutions provider aims to raise ₹500 crore from the primary market through its maiden share sale. The issue will close on Thursday, December 26.

The initial public offering (IPO) of Unimech Aerospace and Manufacturing Limited received bids for over 3.57 crore shares against 47.04 lakh shares on offer, on the second day of subscription. The issue was overall booked 7.59 times till 2:30 pm.

The retail investors subscribed their quota 8.79 times, by applying for 2.05 crore shares against 23.41 lakh shares reserved for the category. The NIIs subscribed their category 9.15 times with bids for over 91.87 lakh shares against 10.03 lakh shares reserved for them.

The Qualified Institutional Buyers (QIBs) booked their quota 4.24 times, with applications for more than 56.79 lakh shares against 13.38 lakh shares on offer. The employees booked their quota 13.24 times as they bid for 2.66 lakh shares compared to their allocation of 20,134 shares.

Here’s a look at all the key details about the issue for the investors interested in applying for the shares of Unimech Aerospace and Manufacturing Ltd.

Unimech Aerospace and Manufacturing raises ₹149.55 crore from anchor investors

Ahead of the launch of its IPO, Unimech Aerospace and Manufacturing raised a total of ₹149.55 crore from anchor investors on December 20.

The company allotted 19.05 lakh equity shares to 18 anchor investors at ₹785 apiece.

Unimech Aerospace and Manufacturing IPO price band and other key details

Unimech Aerospace and Manufacturing IPO comprises a fresh issue of 31.84 lakh shares, worth up to ₹250 crore, and an offer-for-sale (OFS) of the same number of shares, aggregating to ₹250 crore.

The company has fixed the price band at ₹745 to ₹785 per share for the IPO. The minimum lot size is 19 shares for retail investors.

Anand Rathi Securities Ltd and Equirus Capital Private Ltd are the book-running lead managers of the Unimech Aerospace and Manufacturing IPO, while Kfin Technologies Ltd is the registrar for the issue.

Unimech Aerospace and Manufacturing IPO dates

The IPO allotment status is expected to be finalised on Friday, December 27. Refunds will be issued on Monday, December 30, and the allottees will also receive shares in the Demat accounts on the same day.

The company has proposed to list shares on BSE and NSE on Tuesday, December 31.

About Unimech Aerospace and Manufacturing and use of IPO proceeds

Unimech Aerospace and Manufacturing produces key components used in the defence, semiconductor, energy, and aerospace industries. It makes essential parts like aero tooling, electromechanical sub-assemblies and ground support equipment.

Between 2022 and 2024, they manufactured 2,356 stock-keeping units (SKUs) in the tooling and precision complex sub-assemblies category.

It also produced 624 SKUs in the precision machined parts category. As of March 2024, Unimech Aerospace had 384 employees.

The net proceeds from the issue will be used to fund the purchase of machinery and equipment, along with funding working capital requirements, and repayment or prepayment of certain borrowings as well as general corporate purposes.

The company reported revenue of ₹127.58 crore for the six-month period ended on September 30, 2024. Its net profit stood at ₹38.68 crore for the same period.

For FY24, the company reported a revenue of ₹213.79 crore and a net profit of ₹58.13 crore.