Unimech Aerospace and Manufacturing Filed DRHP: Upcoming IPO?

Unimech Aerospace and Manufacturing Private Limited has filed a DRHP with the SEBI for its upcoming Initial Public Offering (IPO). The public issue is a 100% book-built offer. This upcoming IPO is offering a fresh issue worth up to Rs 250 Crore of equity shares and an offer for sale worth up to Rs. 250 Crore equity shares, which sums up an aggregate total size of up to Rs 500 Crore equity shares. The face value mentioned by the company is Rs. 5 for each share. This new IPO issue is being made through the book-building process with a reservation of not more than 50% of the new offer reserved for Qualified Institutional Investors, not less than 15% reserved for NII and the remaining 35% or more reserved for Retail Individuals. So, when will the IPO come? The Application for public issue and subscription opening/closing dates and other important dates will be declared soon. However, the public issue price band at which you can bid will be declared soon.

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About Unimech Aerospace and Manufacturing Private Limited

Unimech Aerospace and Manufacturing Limited is a global leader in high-precision engineering solutions, specializing in the manufacturing of complex products tailored to client specifications. The company offers comprehensive services, including machining, fabrication, assembly, and testing, catering to aerospace, defense, energy, and semiconductor industries. Unimech's diverse product portfolio includes engine lifting beams, ground support equipment, and electro-mechanical systems, all characterized by their complexity and "high-mix, low-volume" nature.

With two advanced manufacturing facilities in Bangalore, Unimech adheres to strict industry standards like AS9100D & BS EN ISO 9001:2015. The company has a strong export focus, with a significant portion of its revenue coming from international markets, including the USA, Germany, and the UK.

Unimech Aerospace and Manufacturing Private IPO Objectives

The Company intends to finance a number of important goals with the Net Proceeds from the New Issue. These include taking care of the Company's working capital requirements, making calculated investments in our Material Subsidiary, and funding the capital expenditure needed for expansion through the purchase of new gear and equipment. The Material Subsidiary's investments will specifically go toward purchasing machinery and equipment, covering its working capital needs, and repaying or prepaying some of the subsidiary's debt, either fully or partially. Furthermore, a segment of the money will be assigned for overall company uses.

Financials of the Company

As of March 31, 2024, the company's assets rose to Rs 175.63 crores, shows an increase of 88.16% compared to March 31, 2023. Revenue grew by 121.71%, reaching Rs 208.78 crores. Profit after tax saw increment of 154.83%, totaling Rs 58.13 crores for the same period. The total borrowing also increased from Rs 22.26 crores to Rs 28.86. These figures demonstrate substantial growth in key financial areas, although the rise in borrowing need to monitor the financial levels closely.

Lead manager(s), Registrar of IPO & Promoter(s) of the Company

The issue has been managed by Anand Rathi Advisors Limited and Equirus Capital Private Limited, that is the book running lead manager of this IPO. For the company, the registrar dealing with the issue is responsible for its management is KFin Technologies Limited. Whereas, Anil Kumar P, Ramakrishna Kamojhala, Mani P, Rajanikanth Balaraman, Preetham S V are the promoters of the company.

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