The Unimech Aerospace IPO concluded its three-day bidding process on December 26, 2024, with an overwhelming response, marking a subscription of 175.31 times. The IPO consists of a fresh issue of ₹250 crore and an offer-for-sale (OFS) of ₹250 crore, with the price band set between ₹745-785 per share. Here’s a comprehensive look at the final day’s highlights and key insights.
IPO Subscription Details
- Qualified Institutional Buyers (QIBs): The QIB quota resulted in the oversubscription. It was booked 317.63 times, indicating strong institutional interest.
- Non-Institutional Investors (NIIs): The NII portion was subscribed 263.40 times, which indicates robust participation from HNIs.
- Retail Investors: The retail segment witnessed a healthy subscription of 56.74 times.
- Employee Quota: Subscribed 97.81 times, which indicates huge interest from employees.
Grey Market Premium (GMP)
The grey market premium (GMP) of the IPO was at ₹630. It could be an indicative listing price of ₹1,415 with a premium of 80.25% over the upper price band of ₹785.
About the Company
Unitech Aerospace provides high-precision engineering solutions for aerospace, defense, energy, and semiconductor businesses. The company’s ability in advanced manufacturing, drive towards digitalization, and strong vendor system place it at the forefront.
Financial Performance
Unimech Aerospace has shown stellar growth
- Revenue has grown with a CAGR of 139.7% over FY2022 and FY2024
- PAT margins have shown improvement from 9.33% in FY2022 to 32.06% as of September 2024
Expert Recommendations
- Choice Equity Broking: Given its good growth prospects and expansion across geographies, it values the company at a P/E multiple of 68.7x and assigns a “SUBSCRIBE” rating.
- Hem Securities: It recognizes Unimech’s ability to cater to changing client needs and has a “SUBSCRIBE” recommendation.
- InCred Equities: It underlines the company’s strong return on equity and significant market share.
Upcoming Dates
- Allotment Finalization: To be announced shortly.
- Listing Date: Both BSE and NSE are scheduled for December 31, 2024.
- Refunds: Refunds to unsuccessful bidders will be made shortly after allotment.
Investment Rationale
- Focus on advanced manufacturing capabilities and digitalization.
- High entry barriers in the aerospace and defense industries.
- Strong financial performance and export-driven revenue model.
- Significant growth potential in the global Maintenance, Repair, and Operations (MRO) market.
Conclusion
With its strong subscription figures, excellent market positioning, and positive GMP signals, the Unimech Aerospace IPO has garnered tremendous interest from investors. The company is well-positioned for a stellar debut on the stock exchanges. It was based on a proven financial track record and high demand across all investor categories. Investors should monitor the allotment process and listing day developments closely. Get more such details on a daily basis at Founderlabs!
