Unimech Aerospace IPO Day 2: Subscription surges 6x, GMP zooms 65%

The unlisted shares of Unimech Aerospace continued to command a solid premium in the grey markets as their initial public offering (IPO) entered the second day of subscription. The Rs 500 crore public offering is available at a price band of Rs 745-785 per share, with a lot size of 19 shares. Sources tracking unofficial markets revealed that the unlisted shares of Unimech Aerospace were trading at Rs 1,295 apiece, reflecting a grey market premium (GMP) of Rs 510 or 64.97 per cent against the upper end of the IPO price of Rs 785.

 

Unimech Aerospace has also received a favourable response from investors so far. The public offering garnered bids for 2,61,12,365 shares against 47,04,028 shares on offer, resulting in an oversubscription of 5.55 times as of 11:12 AM on December 24, 2024, according to data available on the National Stock Exchange (NSE). 

 

Among investors, the IPO has seen the highest demand from Retail Individual Investors (RIIs), who have oversubscribed the category reserved for them by 6.43 times. This is followed by Non-Institutional Investors (NIIs) at 6.22 times and Qualified Institutional Buyers (QIBs) at 3.44 times. Meanwhile, the quota reserved for employees has been oversubscribed by 9.81 times.

 

The company has also garnered favourable reviews from several brokerages, including BP Wealth, InCred Equities, and Ventura Securities. Market analysts remain optimistic about the public offering and have broadly recommended subscribing to the issue. READ MORE

 

Unimech Aerospace IPO will remain open for subscription until Thursday, December 26, 2024. Following the closure of the subscription window, the basis of allotment of shares is expected to be finalised on Friday, December 27, 2024. Successful allottees will receive the shares in their demat accounts by Monday, December 30, 2024.

 

Shares of Unimech Aerospace are tentatively scheduled to list on the BSE and NSE on Tuesday, December 31, 2024.

 

Unimech Aerospace intends to utilise the net proceeds from the fresh issue to fund capital expenditure related to expansion through the purchase of machinery and equipment and to meet its working capital requirements. Additionally, the company plans to invest in its material subsidiary to purchase machinery and equipment, fund working capital needs, and repay or prepay certain borrowings of the subsidiary. A portion of the proceeds will also be allocated to general corporate purposes.

 

KFin Technologies serves as the registrar for the Unimech Aerospace IPO, while Anand Rathi Securities and Equirus Capital are the book-running lead managers of the public issue. 

 

Unimech Aerospace and Manufacturing is an engineering solutions company specialising in manufacturing and supplying critical parts such as aero tooling, ground support equipment, electromechanical sub-assemblies, and other precision-engineered components for the aerospace, defence, energy, and semiconductor industries. It possesses ‘build-to-print’ capabilities, where it manufactures products based on client designs, and ‘build-to-specifications’ capabilities, where it assists clients in designing products to be manufactured based on specifications.