Unimech Aerospace IPO Day 1: Unimech Aerospace IPO, opened for bidding today, December 23, and has already gained strong traction in the grey market. A mainboard issue, Unimech Aerospace is a book build issue of Rs 500 crore, with price band set between Rs 745 to Rs 785 per share.
Here’s everything you need to know before you decide to apply:
Unimech Aerospace IPO – Grey Market Premium (GMP)
Shares of Unimech Aerospace are currently commanding a premium of Rs 482 in the grey market, suggesting that the stock could debut at a significant markup compared to its IPO price.
With an expected listing price of Rs 1,265 per share, indicating a gain of over 61.15 per cent from the upper end of the IPO price band, which is Rs 785.
Unimech Aerospace IPO – Subscription Status
The IPO opened for bidding today, December 23 and is set to close its bidding window on December 26.
As of the first day, the issue is subscribed 1.33 times, with a notable 2.04 times subscription in the retail category so far. However, there is no subscription yet in the QIB category.
What Does the IPO Offer?
A book-built issue worth Rs 500 crores, it consists of a fresh issue of 0.32 crore shares amounting to Rs 250 crores and an offer for sale of 0.32 crore shares also worth Rs 250 crores.
After the closure of the IPO bidding window, it is expected that the allotment of the shares is scheduled to be finalised on December 27 and listing on December 31.
Key Risk Factors to Consider
The company, in the DRHP filed before the opening of the issue, highlighted the risk factors in the segment and wrote, “A significant portion (more than 94%) of our total revenue from operations in each of the last three Fiscals is attributable to the aerospace sector wherein we manufacture products pertaining to aero engine tooling and airframe tooling. Any adverse changes in the aerospace sector could adversely impact our business, results of operations and financial condition.”
“We are dependent on our top 10 customers who contribute more than 95% of our total revenue from operations in each of the last three Fiscals and the loss of any of these customers or a significant reduction in purchases by any of them could adversely affect our business, results of operations and financial condition,” added the company in the DRHP filing.
About the company
Unimech Aerospace is a player in high-precision engineering, specialising in manufacturing solutions for the aerospace, defense, energy, and semiconductor industries and is also focusing on inorganic growth via acquisitions and partnerships, particularly in sectors like defence, automotive, and energy.
According to Reliance Securities, “UAML is enhancing its global footprint in strategic regions and expanding to new markets for new clients, capturing a higher market share from existing customers utilizing its capacity expansion and collaborative manufacturing for its growth in MRO markets and aircraft fleet with a higher fixed asset turnover ratio in the coming years. UAML is also focusing on inorganic growth through acquisitions and partnerships with customers for the end-use in various sectors like defense, automotive, and energy sectors improving its consistent financial performance in the coming years. Hence, we recommend a SUBSCRIBE to the issue.”