Unimech Aerospace and Manufacturing Ltd. is a Bengaluru based manufacturer expertised in high-precision tooling and components for the aerospace requirements, defense, energy, and semiconductor industries, is set to launch its Initial Public Offering (IPO) on December 23, 2024. The IPO aims to raise ₹500 crore, with shares priced between ₹745 and ₹785 each. Unimech Aerospace IPO Grey Market Premium are commanding a premium of ₹470, indicating strong investor interest as of today.
Unimech Aerospace IPO Grey Market Premium
As of December 22, 2024, Unimech Aerospace’s shares are trading at a grey market premium (GMP) of ₹470. This suggests an expected listing price of approximately ₹1,265 per share, representing a 59% premium over the upper price band. Such a significant GMP reflects robust demand and positive market sentiment towards the IPO.
IPO Details
- Issue Size: The total issue size is ₹500 crore, comprising a fresh issue of ₹250 crore and an Offer for Sale (OFS) of ₹250 crore.
- Price Band: The shares are priced between ₹745 and ₹785 per equity share.
- Lot Size: Investors can bid for a minimum of 19 shares, amounting to ₹14,915 at the upper price band.
- IPO Type: This is a Book Built Issue IPO.
- Quota Details:
- Qualified Institutional Buyers (QIB): 50% of the offer.
- Non-Institutional Investors (NII): 15% of the offer.
- Retail Individual Investors (RII): 35% of the offer.
- DRHP Draft Prospectus: Check Here
IPO Dates
- Issue Opening Date: December 23, 2024.
- Issue Closing Date: December 26, 2024.
- Basis of Allotment Date: December 27, 2024.
- Initiation of Refunds: December 30, 2024.
- Credit of Shares to Demat Accounts: December 30, 2024.
- IPO Listing Date: December 31, 2024.
Company Overview and Operating Model
Founded in 2016, Unimech Aerospace specializes in manufacturing complex tooling, mechanical assemblies, electro-mechanical turnkey systems, and precision components. Their products cater to the aerospace, defense, energy, and semiconductor industries, focusing on aeroengine and airframe tooling for production, maintenance, repair, and overhaul activities. The company emphasizes customized solutions, producing relatively small quantities tailored to specific customer requirements.
Financial Results
In the fiscal year ending March 2024, Unimech Aerospace reported significant growth:
- Revenue: ₹209 crore, a 122% increase from ₹94 crore in the previous fiscal year.
- Net Profit: ₹58 crore, up from ₹23 crore, marking a substantial rise.
- Operating Profit Margin (OPM): Improved to 38% from 37% in the prior year.
Key Review: Should You Apply?
The substantial grey market premium indicates strong investor confidence in Unimech Aerospace’s growth prospects. The company’s impressive financial performance, coupled with its niche market presence in high-precision manufacturing for critical industries, makes it an attractive investment opportunity. However, potential investors should consider factors such as market volatility, industry-specific risks, and the company’s reliance on a limited number of clients. Conducting thorough due diligence and consulting with financial advisors is recommended before making an investment decision.
Pravin Bhosale
Since stepping into the world of trading in 2019, i have gained valuable experience navigating the markets, have knowldge in indices like Bank Nifty, Nifty IT, Sensex, Bankex, and Finifty. Also have sound knowldge about IPO industry & ipo process. our blog aims to make finance approachable, offering practical insights for readers to better understand and act on market trends.
Top 5 FAQs
- What is the Unimech Aerospace IPO date?
- The IPO opens on December 23, 2024, and closes on December 26, 2024.
- What is the price band for the Unimech Aerospace IPO?
- The price band is set between ₹745 and ₹785 per equity share.
- What is the grey market premium (GMP) for Unimech Aerospace IPO today?
- As of December 22, 2024, the GMP is ₹470, indicating a 59% premium over the upper price band.
- What is the lot size for the Unimech Aerospace IPO?
- The minimum lot size is 19 shares, amounting to ₹14,915 at the upper price band.
- Should I apply for the Unimech Aerospace IPO?
- While the strong GMP and financial performance are promising, it’s essential to assess your investment goals and risk tolerance. Consulting with a financial advisor is advisable.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Investing in IPOs carries risks, and it’s essential to conduct thorough research or consult with a financial advisor before making investment decisions.