The Unimech Aerospace and Manufacturing IPO is witnessing strong demand, with the issue already subscribed 9.6 times by the second day of bidding on Tuesday, December 24, 2024. The IPO, set to raise ₹500 crore, has drawn significant interest across investor categories, particularly from non-institutional investors (NIIs) and retail investors.
Impressive Subscription Numbers
As of Day 2, investors have bid for over 4.28 crore shares, far exceeding the 47.04 lakh shares available in the offering. Here’s a breakdown of the subscription across categories:
- Retail Investors: Subscribed 10.89 times, with bids for 2.42 crore shares against the 23.41 lakh shares reserved.
- Non-Institutional Investors (NIIs): Subscribed 12.73 times, placing bids for over 1.21 crore shares against the 10.03 lakh shares allotted.
- Qualified Institutional Buyers (QIBs): Subscribed 4.89 times, bidding for over 62.09 lakh shares against the 13.38 lakh shares available.
- Employees: Subscribed 13.24 times, bidding for 16.47 lakh shares against the 20,134 shares reserved for them.
Issue Structure and Details
The ₹500 crore IPO comprises:
- A fresh issue of 0.32 crore shares, raising ₹250 crore.
- An offer for sale (OFS) of 0.32 crore shares, also aggregating to ₹250 crore.
The price band for the IPO is set between ₹745 and ₹785 per share, with a minimum lot size of 19 shares requiring an investment of ₹14,915 for retail investors.
- sNII Minimum Investment: ₹2,08,810 (266 shares, 14 lots).
- bNII Minimum Investment: ₹10,14,220 (1,292 shares, 68 lots).
Timeline and Listing Details
- Subscription Period: December 23–26, 2024.
- Allotment Date: Expected on December 27, 2024.
- Listing Date: Tentatively set for December 31, 2024, on the BSE and NSE.
Utilization of Proceeds
The proceeds from the IPO will be directed toward:
- General business purposes and working capital.
- Repayment or early repayment of loans.
- Acquisition of machinery and equipment to enhance production capabilities.
Company Financials
Unimech Aerospace has demonstrated consistent financial growth. For the first half of FY25, ending on September 30, 2024, the company reported:
- Revenue: ₹127.58 crore.
- Net Profit: ₹38.68 crore.
For the full fiscal year FY24, the company achieved:
- Revenue: ₹213.79 crore.
- Net Profit: ₹58.13 crore.
The Unimech Aerospace IPO is shaping up to be one of the year-end highlights for the stock market. With robust demand across all investor categories and promising financials, the company is poised for a strong market debut on December 31, 2024.
