Thu Dec 26 11:01:10 UTC 2024: ## Unimech Aerospace IPO Oversubscribed on Final Day, Expected to List at Premium

**MUMBAI, INDIA** – Unimech Aerospace and Manufacturing Ltd.’s initial public offering (IPO) concluded today, significantly oversubscribed at 95.42 times the number of shares offered. The ₹500 crore IPO, comprising a fresh issue and an offer-for-sale, saw robust demand across all investor categories. Retail investors alone subscribed 43.69 times their allotted portion, while non-institutional investors subscribed 194 times and qualified institutional buyers 112.27 times. Even the employee portion was oversubscribed at 77.72 times.

The IPO, priced between ₹745 and ₹785 per share, had already raised ₹149.5 crore from anchor investors prior to the public offering. The company, a high-precision engineering solutions provider to the aerospace, defense, energy, and semiconductor sectors, boasts a strong track record of growth, with a Compound Annual Growth Rate (CAGR) of 139.7% in revenue between FY2022 and FY2024. Analysts point to the company’s high operating margins (approximately 38% in FY24) and strong return on equity (RoE) and return on capital employed (RoCE) of approximately 54% each in FY24 as key factors driving investor interest.

The grey market premium (GMP) for Unimech Aerospace shares currently stands at ₹610, suggesting an anticipated listing price of around ₹1,395, a 77.71% premium over the upper end of the IPO price band. This indicates strong investor confidence in the company’s future prospects. However, investors are advised to consult with financial advisors before making any investment decisions. Anand Rathi Advisors Ltd and Equirus Capital Private Ltd are the lead managers for the IPO. The company’s substantial export sales (approximately 96% of total revenue in 1HFY25/FY24), primarily to the USA, further bolster its international appeal.

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