Unimech Aerospace and Manufacturing Ltd is set to launch its initial public offering (IPO) from December 23 to December 26, 2024, aiming to raise approximately ₹500 crores. The IPO will consist of a fresh issue of shares worth ₹250 crores and an equal amount from an offer for sale. The price band is fixed between ₹745 and ₹785 per share, with a minimum lot size of 19 shares for retail investors. Specializing in manufacturing critical aerospace components, including mechanical assemblies and ground support equipment, Unimech aims to leverage its advanced capabilities in the aerospace, defense, energy, and semiconductor sectors.
₹675
₹785
₹1460
Expert Opinions
Market sentiment for the Unimech Aerospace IPO is largely positive, driven by the increasing demand for high-precision components in the aerospace and defense sectors. Company strengths include impressive financial growth, with revenues soaring from ₹36.35 crores in FY22 to ₹208.78 crores in FY24, and a net profit increase from ₹3.39 crores to ₹58.13 crores, reflecting strong operational efficiency. However, risks and challenges include potential regulatory hurdles in international markets and reliance on a limited number of clients, which could impact revenue stability.
The valuation analysis indicates a total IPO size of ₹500 crores, split between a fresh issue and an offer for sale, which appears reasonable given the company’s growth trajectory and return on net worth of 53.53% for FY24. From a long-term investment perspective, Unimech Aerospace is well-positioned to capitalize on the expanding aerospace market, making it an attractive option for investors seeking exposure in this critical industry.
Investor Considerations
Investors considering the Unimech Aerospace IPO should weigh several critical factors. Company performance and fundamentals are robust, as Unimech specializes in high-precision engineering solutions for the aerospace, defense, energy, and semiconductor sectors, demonstrating strong revenue growth potential. The sector outlook is promising, with increasing demand for aerospace components driven by global defense spending and a push for domestic manufacturing.
The IPO valuation is set between ₹745 and ₹785 per share, with a total issue size of ₹500 crores, which appears attractive given the company’s growth trajectory. Growth prospects are bolstered by plans to utilize proceeds for capital expenditure, expanding manufacturing capabilities, and enhancing working capital. However, risk factors include reliance on the aerospace sector for nearly all revenue, potential supply chain disruptions, and regulatory challenges. A long-term investment horizon is advisable, as Unimech Aerospace is well-positioned to capitalize on industry growth while navigating inherent market risks.
| Date | GMP | Trend |
|---|---|---|
| 30 Dec 2024 15.35 | ₹675 | Down |
| 29 Dec 2024 12.01 | ₹715 | Up |
| 28 Dec 2024 11.36 | ₹660 | Up |
| 27 Dec 2024 11.12 | ₹630 | --- |
| 26 Dec 2024 11.32 | ₹630 | Up |
| 25 Dec 2024 11.21 | ₹510 | --- |
| 24 Dec 2024 11.01 | ₹510 | Up |
| 23 Dec 2024 11.58 | ₹480 | Up |
| 22 Dec 2024 12.06 | ₹400 | --- |
| 21 Dec 2024 12.12 | ₹400 | --- |
| 20 Dec 2024 10.45 | ₹400 | --- |
| 19 Dec 2024 12.43 | ₹400 | Up |
| 18 Dec 2024 11.57 | ₹200 | Up |
| 17 Dec 2024 12.58 | ₹00 | --- |
FAQs
The Grey Market Premium showed perfect accuracy in predicting Unimech Aerospace’s listing performance. The GMP of ₹675 predicted a premium of 85.99% over the issue price, and the stock delivered exactly the same gain of 85.99%. With zero prediction error, the GMP perfectly captured both the direction and magnitude of the listing gains, demonstrating exceptional precision in this case.
Unimech Aerospace IPO Current GMP is ₹675.
Unimech Aerospace IPO Expected Returns is 85.99%.
Unimech Aerospace IPO estimated listing price is ₹1460.