Unimech Aerospace IPO Day 3 Live Updates: The initial public offering (IPO) of Unimech Aerospace and Manufacturing Ltd saw a subscription rate of 9.09 times on the second day of bidding, which took place on Tuesday. Non-institutional investors contributed to a subscription level of 12.07 times, while the Retail Individual Investors (RIIs) segment was subscribed 10.30 times. The Qualified Institutional Buyers (QIBs) category achieved 4.64 times subscription.
This IPO includes a fresh issue of shares worth up to ₹250 crore along with an offer-for-sale (OFS) of up to ₹250 crore. The subscription period for the issue concludes today, Thursday, December 26.
The price range for the shares has been set between ₹745-785 each. Prior to the opening of the public subscription, which started on Monday, December 23, Unimech Aerospace Manufacturing raised ₹149.5 crores from anchor investors.
Unimech Aerospace is a company focused on high-precision engineering solutions, providing complex manufacturing services to the aerospace, defense, energy, and semiconductor sectors.
Anand Rathi Advisors Ltd and Equirus Capital Private Ltd are the lead managers overseeing the offer.
Stay tuned for more updates
Unimech Aerospace IPO Day 3 Live Updates: Check out Key Investment Rationale by experts
- Advanced manufacturing capabilities
- Focus on digitalization
- High entry barriers
- Export-driven and diversified geographical spread
- Robust vendor system
Unimech Aerospace IPO Day 3 Live Updates: Here’s what Hem Securities says about the IPO
Company have established itself as an approved supplier for various industry leaders in aerospace, defence, semiconductor and energy sectors. Company have developed and have a potential to further evolve its facilities to cater to all the specific and changing needs and requirements of the customers with respect to the products company make and for the industry it supply products to, allowing to provide customized and tailored solution. Hence Looking after all above , we recommend “Subscribe” on issue.
Unimech Aerospace IPO Day 3 Live Updates: Issue booked 95.42x on third bidding day so far
The initial public offer of Unimech Aerospace IPO has been subscribed 95.42x on the third day of subscription today, at 14:18 IST, as per BSE data.
The initial share sale received bid for 44,88,40,705 shares against 47,04,028 shares on offer, according to BSE.
The portion for retail investors received 43.69x subscription while the quota for non-institutional investors got subscribed 194.00x. The qualified institutional buyers (QIBs) part is booked 112.27x. The employee portion has been subscribed 77.72x.
Unimech Aerospace IPO Day 3 Live Updates: All you need to know about the Global Maintenance, Repair and Operations (MRO) market
The global aircraft Maintenance, Repair and Overhaul (MRO) market is a vital sector supporting the safety, reliability, and efficiency of commercial aircraft. The commercial aircraft MRO activities can be categorized into four main types, such as engine, airframe, line maintenance and component maintenance.
The Engine MRO segment accounted for ~46% of the total MRO revenue in FY23 and is expected to grow to 49% by FY28. In absolute terms, the share of engine MRO stood at USD 42.8 bn in FY23 and is expected to grow at a CAGR of 4.5% between FY23-FY28P to reach USD 53.2 bn by FY28.
Unimech Aerospace IPO Day 3 Live Updates: Here’s what InCred Equities says about the IPO
In FY24, RoE and RoCE stood at ~54% each. Unimech usually works with 8-16 weeks of orders. We recommend subscribing to the IPO, given its presence in niche aerospace & defence sectors, healthy margin profile, diversified capabilities and higher return ratios.
Unimech Aerospace IPO Day 3 Live Updates: Issue booked 66.93x on third bidding day so far
The initial public offer of Unimech Aerospace IPO has been subscribed 66.93x on the third day of subscription today, at 13:24 IST, as per BSE data.
The initial share sale received bid for 31,48,48,202 shares against 47,04,028 shares on offer, according to BSE.
The portion for retail investors received 38.43x subscription while the quota for non-institutional investors got subscribed 152.72x. The qualified institutional buyers (QIBs) part is booked 52.42x. The employee portion has been subscribed 69.89x.
Unimech Aerospace IPO Day 3 Live Updates: Check out key dates
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Unimech Aerospace IPO Day 3 Live Updates: Check out Growth Strategies
- Enhancing global footprint in strategic regions
- Capturing higher market share and increase in wallet shares from customers
- Expanding manufacturing capacity and collaborative manufacturing with global and local manufacturers for growth
- Focus on growth by opportunistic inorganic acquisitions and partnerships with customers
- Expanding product development and market presence across high-mix, low volume industries
Unimech Aerospace IPO Day 3 Live Updates: Check out some of the key risks
- Customer concentration
- Long gestation period
- Export risk
Unimech Aerospace IPO Day 3 Live Updates: Issue booked 26.83x on third bidding day so far
The initial public offer of Unimech Aerospace IPO has been subscribed 26.83x on the third day of subscription today, at 11:24 IST, as per BSE data.
The initial share sale received bid for 12,62,12,573 shares against 47,04,028 shares on offer, according to BSE.
The portion for retail investors received 22.45x subscription while the quota for non-institutional investors got subscribed 66.29x. The qualified institutional buyers (QIBs) part is booked 4.68x. The employee portion has been subscribed 41.81x.
Unimech Aerospace IPO Day 3 Live Updates: All you need to know about manufacturing capabilities
Unimech Aerospace is an international company providing high-precision engineering solutions that focuses on producing complex products through “build to print” and “build to specifications” services. In the build to print model, the company fabricates tools and components based on detailed designs and drawings provided by clients, whereas the build to specifications model aims to support clients in product design by following their specifications and descriptions of requirements.
Unimech Aerospace IPO Day 3 Live Updates: Export driven business
The company is one of the leading exporters of aerospace components, catering to a global customer base across USA, Germany and United Kingdom. As of 1HFY25/FY24, export sales accounted for ~96%/98% of the total revenue, of which the share of sales to USA based customers stood at ~83%/92% respectively.
Unimech Aerospace IPO Day 3 Live Updates: Issue booked 15.89x on third bidding day so far
The initial public offer of Unimech Aerospace IPO has been subscribed 15.89x on the third day of subscription today, at 10:21 IST, as per BSE data.
The initial share sale received bid for 7,47,45,392 shares against 47,04,028 shares on offer, according to BSE.
The portion for retail investors received 14.25x subscription while the quota for non-institutional investors got subscribed 34.56x. The qualified institutional buyers (QIBs) part is booked 4.65x. The employee portion has been subscribed 22.26x.
Unimech Aerospace IPO Day 3 Live Updates: Here’s what SBI Securities says about the issue
At the upper price band of ₹785, the company is valued at FY25 annualized P/E multiple of 51.6x on post issue capital which is at a discount to its peers. We recommend investors to subscribe to the issue at cut-off price.
Unimech Aerospace IPO Day 3 Live Updates: All you need to know about the anchor investors
Various foreign and domestic institutions that took part in the anchor included Goldman Sachs India Equity Portfolio, ICICI Prudential Transportation and Logistics Fund, Tata India Innovation Fund, Motilal Oswal, Edelweiss Trusteeship, Ashoka India Investment Fund, Abakkus Diversified Alpha Fund-2, VQ Fastercap Fund, HSBC Flexi Cap, Copthall Mauritius, and Clarus Capital, among others.
The company experienced significant interest from both global and domestic institutions. Of the total allocation of 1,905,094 Equity Shares to the Anchor Investors, 1,016,215 Equity Shares (which represents 53.34% of the overall allocation to Anchor Investors) were distributed to 7 domestic mutual funds through a combination of 10 schemes.
Unimech Aerospace IPO Day 3 Live Updates: Established player in a sector with barriers to entry
The company is engaged in the business of manufacturing complex tooling, mechanical assemblies, electro-mechanical turnkey systems, and precision components. Given the complex production process, adherence to stringent quality standards is a must. Establishing relationships with original equipment manufacturers (OEMs) and on boarding them is a time-consuming process, often taking several years. Further, once the customer onboards a vendor, shifting to another vendor is not cost efficient. The company have established themselves as an approved supplier for various industry leaders in aerospace, defence, semi-conductor and energy sectors.
Unimech Aerospace IPO Day 3 Live Updates: Check out the firm’s product portfolio
The company offers a range of products, including beams for lifting and balancing engines, tools for assembly, disassembly, and calibration, ground support machinery, platforms for airframe assembly, stands for engine transportation, complete mechanical and electro-mechanical systems, and precision parts.
Unimech Aerospace IPO Day 3 Live Updates: Indsec Securities has a ‘Subscribe’ tag to the IPO
The brokerage reported that the company’s operating margin for FY24 was approximately 38%, due to its production of a diverse range of low-volume, high-margin products. The presence of significant entry barriers and the manufacturing of essential components contribute to the maintenance of a high operating margin. As of September 30, 2024, the company has ₹807.52 million in orders.
The increasing demand from both the aviation sector and related industries, along with substantial entry barriers and a strategic partnership with Dheya Engineering for mini-gas turbine production, all point toward positive future growth prospects. Consequently, the brokerage has given a “Subscribe” recommendation for the IPO.
Unimech Aerospace IPO Day 3 Live Updates: Here’s what GMP hints ahead on the third bidding day
Unimech Aerospace IPO GMP today is +610. This indicates Unimech Aerospace share price was trading at a premium of ₹610 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Unimech Aerospace share price is indicated at ₹1,395 apiece, which is 77.71% higher than the IPO price of ₹785.
According to the last 11 sessions of grey market activities, today’s IPO GMP is trending upwards and is anticipated to have a robust listing. The minimum GMP recorded is ₹0, while the maximum stands at ₹610, as per insights from experts at investorgain.com.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
