Unimech Aerospace has launched an Initial Public Offering (IPO) worth ₹500 crores, comprising an equal split of fresh shares and an offer for sale, each aggregating to ₹250 crores. The price range for the IPO is set between ₹745 and ₹785 per share. The issue opened for bidding on December 23, 2024, and closes today, December 26, 2024. Allotment of shares is anticipated to be finalised by tomorrow, December 27, 2024, with a tentative listing date on the BSE and NSE set for December 31, 2024.
Retail investors can invest with a minimum lot size of 19 shares, costing ₹14,915. Strategic Non-Institutional Investors (sNII) must purchase a minimum of 14 lots (266 shares) for ₹2,08,810, while Bulk Non-Institutional Investors (bNII) are required to buy at least 68 lots (1,292 shares), totalling ₹10,14,220. Anand Rathi Securities Limited and Equirus Capital Private Limited are managing the book, with Kfin Technologies Limited serving as the registrar.
Industry Outlook
- The global commercial aircraft fleet is projected to grow significantly, with the Asia-Pacific region expected to add 11,925 aircraft by 2042, driven by the demand for low-cost carriers and economic growth in the area.
- Defence aircraft engine market concentration is high, with General Electric holding a 24% share in 2023, powering key military aircraft including the F-15 and F/A-18.
Unimech Aerospace and Manufacturing IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Funding of capital expenditure for expansion through purchase of machineries and equipment by the Company;
- Funding working capital requirements of the Company;
- Investment in the Material Subsidiary for:
- purchase of machineries and equipment;
- funding its working capital requirements; and
- repayment / prepayment, in full or part, of certain borrowings availed by the Material Subsidiary; and
- General corporate purposes.
About Unimech Aerospace and Manufacturing Limited
Incorporated in 2016, Unitech Aerospace and Manufacturing Limited excels in manufacturing complex tools, mechanical assemblies, electro-mechanical systems, and components for aeroengine and airframe production. Based in Bangalore, the company specialises in engineering solutions with "build to print" and "build to specifications" services. This encompasses machining, fabrication, assembly, testing, and product development tailored to client requirements across aerospace, defence, energy, and semiconductor industries.
From 2022 to 2024, Unitech Aerospace manufactured 2,356 SKUs in tooling and precision complex sub-assemblies, and 624 SKUs in precision machined parts, serving over 26 customers across seven countries. The firm operates two ISO-registered manufacturing facilities in Bangalore, with a combined area of over 120,000 sq ft. The Peenya facility spans 30,000 sq ft, while the unit near Bangalore International Airport occupies 90,000 sq ft. As of March 31, 2024, the company employs 384 staff members.
How To Check the Allotment Status of the Unimech Aerospace and Manufacturing IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for Unimech Aerospace and Manufacturing IPO online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Unimech Aerospace and Manufacturing IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Unimech Aerospace and Manufacturing IPO
Registered office: 538, 539, 542 & 543, 7th Main of Peenya IV Phase Industrial Area, Yeshwanthpur Hobli, Bangalore, North Taluk - 560058, Bangalore, Karnataka, India
Phone: 080-4204 6782
E-mail: investorrelations@unimechaerospace.com
Unimech Aerospace and Manufacturing IPO Reservation
|
Investor Category |
Shares Offered |
|
Anchor Investor Shares Offered |
19,05,094 (29.91%) |
|
QIB Shares Offered |
12,70,065 (19.94%) |
|
NII (HNI) Shares Offered |
9,52,548 (14.96%) |
|
Retail Shares Offered |
22,22,611 (34.89%) |
|
Eligible Employees |
19,108 (0.3%) |
|
Total Shares Offered |
63,69,426 (100%) |
Category Reservation Detail Table
|
Application Category |
Maximum Bidding Limits |
Bidding at Cut-off Price Allowed |
|
Only RII |
Up to ₹2 Lakhs |
Yes |
|
Only sNII |
₹2 Lakhs to ₹10 Lakhs |
No |
|
Only bNII |
₹10 Lakhs to NII Reservation Portion |
No |
|
Only employee |
Up to ₹5 Lakhs |
Yes |
|
Employee + RII/NII |
|
Yes for shareholder/RII |
Unimech Aerospace and Manufacturing IPO Lot Size
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
19 |
₹14,915 |
|
Retail (Max) |
13 |
247 |
₹1,93,895 |
|
S-HNI (Min) |
14 |
266 |
₹2,08,810 |
|
S-HNI (Max) |
67 |
1,273 |
₹9,99,305 |
|
B-HNI (Min) |
68 |
1,292 |
₹10,14,220 |
Unimech Aerospace and Manufacturing IPO Promoter Holding
Anil Kumar P, Ramakrishna Kamojhala, Mani P, Rajanikanth Balaraman and Preetham SV are the promoters of the company.
|
Share Holding Pre-Issue |
91.83% |
|
Share Holding Post Issue |
- |
Key Performance Indicators for Unimech Aerospace and Manufacturing IPO
As of March 31, 2024, the market capitalisation of Unimech Aerospace and Manufacturing's IPO is ₹3992.27 crore. Here are the KPIs of Unimech Aerospace and Manufacturing:
|
KPI |
Value |
|
ROE (%) |
53.53% |
|
ROCE (%) |
54.36% |
|
Debt to Equity (x) |
0.32 |
|
Price to Book Value (x) |
31.77 |
|
RoNW (%) |
53.53% |
|
PAT Margin (%) |
27.85% |
Price Metrics
|
Metric |
Pre-IPO |
Post-IPO |
|
P/E (x) |
12.19 |
15.21 |
|
EPS (₹) |
64.37 |
51.61 |
Unimech Aerospace and Manufacturing IPO Prospectus
Unimech Aerospace and Manufacturing IPO Registrar and Lead Managers
Unimech Aerospace and Manufacturing IPO Lead Managers
- Anand Rathi Securities Limited
- Equirus Capital Private Limited
Registrar for Unimech Aerospace and Manufacturing IPO
Kfin Technologies Limited
- Contact Number: 04067162222, 04079611000
- Email Address: uaml.ipo@kfintech.com
Website: Unimech Aerospace and Manufacturing IPO Registrar
Financial Performance of Unimech Aerospace and Manufacturing Limited
| Particulars | For period ended September 30, 2024 | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|---|
| Revenue from Operation (in ₹ million) | 1,206.56 | 2,087.75 | 941.66 |
| Profit After Tax (PAT) (in ₹ million) | 386.80 | 580.47 | 211.87 |
| Total Borrowings (in ₹ million) | 747.14 | 288.56 | 222.59 |
| Net Worth (in ₹ million) | 3,900.98 | 1,085.95 | 488.45 |
| Return on Equity (%) | 9.92% | 53.53% | 46.70% |
| Return on Capital Employed (%) | 9.69% | 54.36% | 42.87% |
| Installed Capacity (Hours) | 1,65,945 | 2,22,990 | 1,25,100 |
| Earning Per Share (EPS)-in absolute ₹ | 8.49 | 13.23 | 5.19 |
Know before investing
Strengths
12Advanced manufacturing with dual capability: "build to print" and "build to specification."
Produced 2,999 SKUs, serving 26 customers across 7 countries.
Expansive manufacturing facilities covering over 120,000 sq. ft. in Bangalore.
High capacity utilisation of 94.68% ensuring efficient operations.
Diverse manufacturing capabilities including machining, fabrication, and assembly.
Implements rigorous testing, including load testing up to 70 tonnes.
Strong focus on quality with ISO, AWS, and ASME certifications.
Robust digital manufacturing systems integrating operations from start to finish.
High market barriers due to complex production and client approval processes.
Significant exporter with over 90% sales from international markets.
Revenue growth CAGR of 139.7% between FY2022 and FY2024.
Strategic partnerships and collaborations enhancing global market reach.
Risks
12Heavy reliance on aerospace sector: 98.25% revenue from Fiscal 2024.
Customer concentration risk: Top 5 customers 94.62% of revenue.
Extended order-to-cash cycle impacts working capital and cash flow.
Export dependency: 95.67% revenue from exports in six months 2024.
Raw material price volatility affects cost and operational stability.
Lack of firm commitments from suppliers risks supply disruptions.
Dependent on Innomech for 83.46% of six months 2024 revenue.
Negative cash flows from investing and financing activities observed.
Potential regulatory changes could impact export-driven revenue model.
No hedging policy for foreign exchange risks affects profitability.
Risk of lease non-compliance at SEZ facility affects operations.
High reliance on top customers with 99.09% revenue from top 10.
Unimech Aerospace and Manufacturing Limited Peer Details Comparison
| Company Name | EPS (Basic) | P/E (x) | RoNW (%) | P/BV Ratio |
|---|---|---|---|---|
| Unimech Aerospace and Manufacturing Limited | 8.49 | - | 9.92 | - |
| MTAR Technologies Limited | 7.54 | 237.09 | 3.32 | 7.87 |
| Azad Engineering Limited | 273.47 | 145.37 | 5.57 | 15.33 |
| Paras Defence and Space Technologies Limited | 147.98 | 146.89 | 5.71 | 9.07 |
| Dynamatic Technologies Ltd. | 230.12 | 37.34 | 3.32 | 7.65 |
| Data Patterns (India) Limited | 223.67 | 89.98 | 4.67 | 10.46 |
