Unimech Aerospace IPO: GMP, price range, if you apply, as the issue opens on Monday

Unimech Aerospace IPO: The initial public offering (IPO) of engineering solutions company Unimech Aerospace and Manufacturing Ltd will take place on Dalal Street next week. The ₹Unimech Aerospace IPO worth Rs 500 crore is a motherboard IPO and the company’s shares will be listed on both the stock exchanges – BSE and NSE.

Unimech Aerospace and Manufacturing is a manufacturer of complex tooling such as mechanical assemblies, electromechanical systems and components for the production of aircraft engines and airframes. The technical solutions provider has customers in the aerospace, defense, energy and semiconductor industries.

Let’s check out Unimech Aerospace and Manufacturing’s IPO details, GMP, review once the issue opens tomorrow.

Unimech Aerospace IPO details

Bidding for the Unimech Aerospace IPO begins on Monday, December 23 and ends on Thursday, December 26. The IPO allotment is expected to be completed on December 27 and the listing date for the IPO is likely to be December 31. Unimech Aerospace shares will be listed on BSE and NSE.

Unimech Aerospace’s IPO price range is set at ₹745 to ₹785 per share and the IPO lot size is 19 shares. The minimum investment amount required by private investors is ₹14,915. The company plans to increase ₹500 crore at the upper end of the price band of the book-built issue, which is a combination of a fresh issue of 31.84 lakh shares, aggregating to ₹250 crore and an offer-for-sale (OFS) component of a similar number of equity shares ₹250 crores.

The company has already raised ₹149.5 crore from anchor investors ahead of the IPO opening tomorrow. Unimech Aerospace has allotted 19,05,094 shares on ₹785 per share on Friday, December 20 to the 18 anchor investors.

The Company intends to use the net issuance proceeds to fund capital expenditures, working capital needs, investments in the material subsidiary and for general corporate purposes.

Anand Rathi Securities and Equirus Capital are the lead managers of the Unimech Aerospace IPO, while Kfin Technologies is the IPO registrar.

Unimech Aerospace IPO GMP today

Unimech Aerospace and Manufacturing shares are showing a bullish trend in the unlisted market with a strong gray market premium (GMP). According to stock market observers, Unimech Aerospace IPO is GMP today ₹482 per share. This means that Unimech Aerospace shares are trading higher on the gray market ₹482 than their issue price.

Unimech Aerospace IPO GMP indicates that the stock is trading ₹1,267 each on the gray market, a premium of more than 61% on the IPO price of ₹785 per share.

Unimech Aerospace IPO Overview

Unimech Aerospace and Manufacturing Ltd operates in a niche segment of aero tooling and precision component manufacturing with applications in the aircraft maintenance, repair and overhaul (MRO), defense, semiconductor and energy industries. Based on its future prospects and cheaper valuations compared to peers, most analysts have recommended subscribing to Unimech Aerospace’s IPO.

“In the higher price range of ₹785, the company is valued at a FY25 annualized price-to-earnings ratio of 51.6x on post-issue capital, which is a discount to its peers. We recommend investors to subscribe to the issue at the closing price,” SBI Securities said.

Abhishek Pandya, research analyst at StoxBox noted that as of September 2024, the company had an order book worth ₹807.52 million, with delivery times ranging from 4 to 16 weeks.

“The issue is valued at a price-to-earnings (P/E) ratio of 59.3x at the higher price band based on FY24 earnings, which is relatively lower than that of comparable stocks. Considering the company’s strong financial performance, industry tailwinds and attractive valuation, we recommend a “SUBSCRIBE” rating for this issue,” Pandya said.

Disclaimer: The views and recommendations expressed above are those of individual analysts or brokerage firms, and not of Mint. We advise investors to contact certified experts before making investment decisions.