SEBI Approves IPO Plans for Kalpataru and Unimech Aerospace

26 Nov 2024 , 01:10 AM

The market regulator has issued observation letters to Unimech Aerospace and Manufacturing on November 21 and Kalpataru on November 22, paving way for the companies to launch their IPOs within one year.

Kalpataru, a real estate company based in Mumbai, posted its draft red herring prospectus on August 14, 2024. The company will raise ₹1,590 crore through a fresh issue; all the issue proceeds (excepting offer expenses) will directly flow into the company funds. In addition, it will also mop up ₹318 crore through a pre-IPO placement, shrinking the size of the fresh issue proportionate to the pre-IPO placement.

With a strong portfolio, Kalpataru has delivered 113 projects, which cover more than 24.10 million square feet across key cities like Mumbai, Thane, Pune, and Bengaluru. It currently has 25 projects underway, 10 upcoming projects, and 5 proposed projects until March 2024. The IPO proceeds will be used to retire ₹1,192.5 crore in debt, while the balance will go toward general corporate uses. The borrowings of the company stood at ₹10,747.7 crore until June 2024. The IPO process is managed by ICICI Securities, JM Financial, and Nomura Financial Advisory. On the other hand, Unimech Aerospace, a Bangalore-based precision engineering firm filed draft papers on August 19, 2024 to raise funds amounting to ₹500 crore. The IPO will include ₹250 crore fresh issue and ₹250 crore offer-for-sale where promoters are selling shares.

Mechatronics company, Unimech, specializes in manufacturing complex tooling, mechanical assemblies, and electro-mechanical systems for various industries like aerospace, defense, and energy. Proceeds raised through the IPO will be utilized in purchasing new equipment, working capital, debt repayment, and general corporate purposes. The issue is managed by Anand Rathi Advisors and Equirus Capital.

These IPOs involve real estate and precision engineering, significant growth opportunities appealing to investors who are interested in diversification into established and high-potential industries.