Fri Dec 27 10:08:11 UTC 2024: **Unimech Aerospace IPO Oversubscribed 175 Times, Strong Listing Expected**
MUMBAI, Dec 27 – Unimech Aerospace and Manufacturing Ltd.’s initial public offering (IPO) concluded yesterday with phenomenal success, exceeding expectations by a significant margin. The ₹500 crore offering was oversubscribed a staggering 175.31 times, with bids for 82,46,73,568 shares against the 47,04,028 shares on offer. Strong demand was seen across all investor categories, with Qualified Institutional Buyers (QIBs) subscribing 317.63 times, Non-Institutional Investors (NIIs) 263.78 times, and retail investors 56.74 times. Even the employee category saw robust participation, with a 97.81 times subscription.
Share allotment is scheduled for today, December 27th, and successful bidders can check their allotment status on the websites of BSE, NSE, and registrar KFin Technologies. Shares are expected to be credited to Demat accounts on December 30th, with refunds for unsuccessful applicants on the same day. The company’s shares are slated to list on the NSE and BSE on December 31st.
The grey market premium (GMP), an unofficial indicator of expected listing gains, reached ₹630 as of this morning, suggesting a potential listing price of ₹1415 per share – an 80.25% gain over the IPO price. While the GMP is speculative, it reflects strong investor confidence.
Unimech Aerospace plans to utilize the IPO proceeds for capital expenditure on new machinery and equipment (₹76.4 crore), working capital (₹69.9 crore), repayment of borrowings (₹40 crore), and general corporate purposes. The company manufactures complex tooling and precision components for the aerospace, energy, and semiconductor sectors.
Investors are advised to consult with financial advisors and review the red herring prospectus before making investment decisions. The company’s listing is highly anticipated, given the overwhelming response to its IPO.
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