Mon Dec 23 15:33:31 UTC 2024: ## Unimech Aerospace IPO Opens Strong, Oversubscribed on Day 1

**MUMBAI, INDIA – December 23, 2024** – Unimech Aerospace’s initial public offering (IPO), which opened today, has seen strong early demand. The ₹500 crore mainboard issue, priced between ₹745 and ₹785 per share, is already 1.33 times subscribed, with retail investors showing particularly strong interest (2.04 times subscribed). However, the Qualified Institutional Buyer (QIB) category has yet to record any subscriptions.

The grey market is indicating a significantly higher debut price, with shares currently trading at a ₹482 premium, suggesting a potential listing price of ₹1,265 – a 61.15% increase from the upper end of the IPO price band. The IPO closes on December 26th, with allotment expected on December 27th and listing on December 31st.

Unimech Aerospace, a high-precision engineering company serving the aerospace, defense, energy, and semiconductor sectors, is issuing 0.32 crore shares via a fresh issue and an offer for sale, each worth ₹250 crore. The company’s DRHP filing highlights significant reliance on a small number of key customers (over 95% of revenue from the top 10) and the aerospace sector (over 94% of revenue), presenting potential risks.

Despite these risks, Reliance Securities recommends subscribing to the IPO, citing the company’s expansion plans, increased market share, and focus on inorganic growth through acquisitions. The firm anticipates improved financial performance in the coming years.

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