Tue Dec 24 08:12:24 UTC 2024: **Unimech Aerospace IPO Oversubscribed on Day 2**
**Bengaluru, India (December 24, 2024)** – The initial public offering (IPO) of Unimech Aerospace and Manufacturing, which opened on December 23rd and closes on December 26th, continues to see strong demand. By midday on Day 2, the IPO was oversubscribed 8.32 times, exceeding earlier reports of 6.64x and 5.97x subscription levels.
The ₹500 crore IPO, priced between ₹745 and ₹785 per share, comprises a fresh equity issuance of up to ₹250 crore and an offer for sale (OFS) of up to ₹250 crore by existing shareholders. Unimech had already raised ₹149.5 crore through its anchor book prior to the IPO launch.
Investor interest has been particularly strong across categories. Retail investors showed significant enthusiasm, with subscriptions exceeding expectations throughout the day. At various points during the day, retail investor subscriptions ranged from 4.46x to 7.82x. Non-institutional investors (NIIs) also demonstrated robust demand, with subscription levels ranging between 4.03x and 7.65x. Qualified institutional buyers (QIBs) showed a more moderate, yet still healthy, level of interest with subscription rates between 2.49x and 3.74x. The employee quota was also significantly oversubscribed at 6.48 times.
The strong demand follows a successful first day, where the IPO was subscribed 3.82 times, driven largely by retail investor participation. A significant grey market premium (GMP) of ₹480 per share, potentially indicating a listing price of ₹1,265, further fueled expectations.
Unimech Aerospace, a leading exporter of aerospace components, is benefiting from the growth in the global aerospace sector and the MRO (Maintenance, Repair and Overhaul) market. Proceeds from the IPO will be used for capital expenditure, working capital, and debt repayment. Analysts have cited Unimech’s strong financial performance, including a remarkable revenue CAGR of 139.7% between FY22 and FY24, as key reasons for the positive investor sentiment.
First Piper 