Unimech Aerospace Secures SEBI Nod for ₹500 Crore IPO

26 Nov 2024 , 12:27 PM

The Securities and Exchange Board of India has finally approved the IPO; this means that Unimech Aerospace and Manufacturing can now conclude its plans for the IPO. The company has planned to raise ₹500 through the IPO; this would include a fresh issue of ₹250 crore and an offer for sale of ₹250 crore.

Some of the key promoters and shareholders who would sell their shares through the Offer for Sale:

• Ramakrishna Kamojhala, Mani P., and Rajanikanth Balaraman together would be selling shares of ₹45 crore.
• Preetham S.V. is selling the shares with an issue size of ₹ 30 crore.
• Rasmi Anil Kumar is selling the shares worth ₹ 85 crore

Some of the IPO will be allotted to the eligible employees through the process of subscription. Equity shares issued from the company will be listed at both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Fund raising from fresh issues by the company is to be utilized for various fund requirements of which includes,

• Capital expenditure of ₹ 32.59 crore towards machinery and equipment.
• Working capital needs of ₹25.28 crore.
• Capex to its material subsidiary through cost of equipment acquisition at ₹43.94 crore.
• The amount of ₹44.71 crore as working capital to its subsidiary
• Repayment or pre-payment, in full or in part, of some borrowings with appropriation of ₹40 crores

Price band and minimum bid lot for the IPO to be determined after taking discussion with the book running lead managers (BRLMs). KFin Technologies is the registrar to the issue. Anand Rathi Advisors and Equirus Capital are the book running lead managers.

Unimech Aerospace reported revenue growth of 121.7% at ₹208.77 crore during FY24 compared with ₹94.17 crore in FY23. Profit after tax increased sharply by 154.84% at ₹58.13 crore in FY24 as compared with ₹22.81 crore in FY23. Total expenses surged by 109.39% to ₹137.28 crore for FY24 as compared to ₹65.66 crore in FY23.

Unimech Aerospace was launched in 2016 with the vision of emphasizing high-precision engineering solutions and providing both ‘build-to-print’ and ‘build-to-specifications.’ Their engineering services include machining, fabrication, assembly, testing, and new product development of the client’s specific needs.

Unimech Aerospace is one of the major manufacturers in complex tooling, mechanical assemblies, electro-mechanical turnkey systems, and precision components. These products and services are widely used in aero-engine and airframe tooling for production, MRO (Maintenance, Repair, and Overhaul), and line maintenance activities. The company’s operations and achievements have been highlighted in an F&S report, emphasizing its pivotal role in the aerospace and engineering sectors.