Tue Dec 24 09:52:26 UTC 2024: ## Unimech Aerospace IPO Oversubscribed on Day 2, Grey Market Shows High Premium

**Mumbai, December 24, 2024** – The initial public offering (IPO) of Unimech Aerospace, a global high-precision engineering solutions provider, continued its strong performance on its second day of bidding, closing oversubscribed by 6.68 times. The IPO, which opened on December 23rd and closes on December 26th, aims to raise Rs 500 crore through a combination of fresh shares and an offer for sale.

Retail investors showed significant interest, with the retail portion oversubscribed by 7.87 times. The employee portion was booked 12.14 times, while the Non-Institutional Investors (NII) category saw 7.71 times oversubscription. The Qualified Institutional Buyers (QIB) portion was subscribed 2.62 times on Day 1 but final figures for Day 2 were not available at the time of publication.

Unimech Aerospace, specializing in complex manufacturing solutions for the aerospace, defense, energy, and semiconductor industries, reported a strong financial performance, with a consolidated turnover increasing from Rs 36 crore in FY21 to Rs 209 crore in FY23, and net profit rising from Rs 3 crore to Rs 58 crore during the same period. The company plans to use the IPO proceeds for capital expenditures, working capital, and general corporate purposes.

The IPO is priced between Rs 745 and Rs 785 per share, with allotment expected on December 27th and listing on the BSE and NSE on December 31st. Anand Rathi Securities and Equirus Capital Private are the book-running lead managers.

Adding to the positive sentiment, the grey market, an unofficial indicator, suggests a premium of 65% on the shares, hinting at a potential listing price around Rs 1295. Reliance Securities has issued a “Subscribe” recommendation for the IPO.

While the strong oversubscription and grey market premium indicate positive investor sentiment, potential investors should conduct their own due diligence before participating. The company’s high P/E ratio of approximately 59.33x at the upper end of the price band should also be carefully considered.

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