Mon Dec 23 13:03:21 UTC 2024: ## Unimech Aerospace IPO Oversubscribed on Day 1

**Bengaluru, India** – Unimech Aerospace and Manufacturing’s Initial Public Offering (IPO) saw strong demand on its first day of trading, closing significantly oversubscribed. The IPO, which opened on December 23rd and closes on December 26th, offers a fresh equity issuance of up to ₹250 crore and an offer for sale (OFS) of up to ₹250 crore by existing shareholders. The price band is set at ₹745-785 per share.

The company, based in Karnataka, manufactures aerospace components and serves clients globally, particularly in the USA, Germany, and the UK. Unimech already secured ₹149.5 crore through its anchor book before the IPO opened.

By the end of the first day, the IPO was oversubscribed by 3.82 times, with retail investors leading the charge at 4.46 times oversubscription. Non-institutional investors subscribed 4.03 times, while Qualified Institutional Buyers (QIBs) showed interest at 2.49 times. The employee portion was also heavily oversubscribed at 5.76 times.

The grey market premium (GMP) for Unimech Aerospace shares stood at ₹480 on the first day, suggesting an anticipated listing price of around ₹1,265, a premium of 61.15% over the upper price band. This high GMP reflects investor optimism regarding the company’s growth prospects in the expanding aerospace sector.

Unimech’s strong financial performance, including a 139.7% revenue CAGR between FY22 and FY24 and a high EBITDA margin, has contributed to investor enthusiasm. The company’s focus on high-precision engineering solutions for the aerospace, defense, energy, and semiconductor sectors also positions it favorably for future growth. Proceeds from the IPO will be used for capital expenditures and working capital needs. Several analysts have given the IPO a “subscribe” rating.

Read More