Unimech Aerospace and Manufacturing Limited is launching its Initial Public Offering (IPO). The IPO includes a fresh issue and an offer for sale (OFS). The fresh issue will raise Rs. 250 crore, and the OFS will also aim for Rs. 250 crore. The total issue size stands at Rs. 500 crore. The bidding for the IPO opens on December 23, 2024, and closes on December 26, 2024. The shares will be listed on both BSE and NSE.
GMP of Unimech Aerospace and Manufacturing
The share price of Unimech Aerospace and Manufacturing Limited in the grey market was trading at a 64.97 percent premium as of December 24th, 2024. The shares in Grey Market traded at Rs. 1,295. This gives it a premium of Rs. 510 per share over the cap price of Rs. 785.
Overview of Unimech Aerospace and Manufacturing
Unimech Aerospace and Manufacturing Limited was founded in 2016 and manufactures complex tools, mechanical assemblies, and precision machined parts for aerospace and defense.
The company offers “build to print” and “build to specifications” manufacturing for mechanical assemblies, electro-mechanical systems, and precision machined parts. Unimech serves clients across the aerospace, defense, energy, and semiconductor industries, demonstrating strong innovation and engineering capabilities.
Unimech operates two state-of-the-art facilities in Bangalore, covering 1,20,000 sq. ft., where its team of 384 employees produces high-quality products. Between 2022 and 2024, Unimech supplied over 2,356 tooling SKUs and 624 precision parts to 26 clients across 7 countries.
Products Offering:
Unimech Aerospace manufactures diverse products, including Aero Engine Tooling like engine lifting beams and oil tube fixtures, and Airframe Tooling such as assembly platforms and drill jigs. The company also produces precision parts like missile components and precision subsystems, including advanced assemblies like Rocker Arm – HMC CDA.
Promoters of Unimech Aerospace and Manufacturing
The company is promoted by Anil Kumar P, Ramakrishna Kamojhala, Mani P, Rajanikanth Balaraman, and Preetham S V. The promoters bring deep expertise in aerospace manufacturing and business management.
The offer for sale includes equity shares from all five promoters. Each promoter will sell a portion of their shares as part of the IPO process. The total offer for sale amounts to Rs. 250 crore.
Lead Managers of Unimech Aerospace and Manufacturing
The IPO is managed by Anand Rathi Advisors Limited and Equirus Capital Private Limited as the book-running lead managers. KFin Technologies Limited serves as the registrar to the offer.
Objectives of Unimech Aerospace IPO
The primary objectives of Unimech Aerospace and Manufacturing’s IPO are:
- Funding of capital expenditure for expansion through the purchase of machinery and equipment worth
- Funding for working capital requirements
- Investing in its material subsidiary for the purchase of machinery and equipment, working capital needs, and debt repayment.
- General corporate purposes.
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Financial Analysis of Unimech Aerospace and Manufacturing
Unimech Aerospace and Manufacturing Limited’s revenue has increased from Rs 94.17 crore in FY23 to Rs. 208.78 crore in FY24, which has grown by 121.71 percent. The net profit of the company has also increased by 129.14 percent, from Rs. 34.56 crore in FY23 to Rs. 79.19 crore in FY24.
Unimech Aerospace and Manufacturing Limited’s revenue and net profit have grown at a CAGR of 140.95 percent and 214.25 percent over the last two years, respectively.
In September 2024, the company earned revenue of Rs. 120.66 crore and a net profit of Rs. 38.68 crore. Unimech Aerospace and Manufacturing Limited has maintained an EBITDA margin of 40.47 percent.
Unimech Aerospace and Manufacturing Vs Peers
Unimech Aerospace competes with established peers like MTAR Technologies, Azad Engineering, Dynamatic Technologies, Data Patterns, and Paras Defence. With a total revenue of Rs. 120.66 crores, Unimech operates on a smaller scale than its peers. The company has a return on net worth of 9.92 percent, which is higher than its peer competitors.
Strengths and Weaknesses:
Strengths:
- Strong capabilities in precision engineering and aerospace technology.
- Advanced facilities meeting global standards.
- Diversified customer base across defense and commercial sectors.
- Proven track record of quality and on-time delivery.
- Experienced and visionary leadership.
Weaknesses
- Dependence on a limited number of clients.
- Exposure to regulatory changes in the aerospace sector.
- Competitive pressure from larger industry players.
- High initial costs for expanding production.
- Vulnerability to global supply chain disruptions.
Written By – Nikhil Naik
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