Unimech Aerospace IPO – The Company Submits DRHP to SEBI for Rs 500 Crore Issue

Unimech Aerospace and Manufacturing Ltd, a topmost company in the aerospace sector, has submitted a DRHP to SEBI, the market regulator, for its IPO. This IPO is a mixture of a fresh issue and an offer-for-sale. As per DRHP, in the fresh issue, it contains shares worth ₹ 250 crore, while in the OSF, it also contains shares worth the same ₹ 250 crore by existing shareholders. The face value of this offering is ₹ 5 each.

In OFS Rasmi Anil Kumar is selling shares worth ₹ 85 crores, Rajanikanth Balaraman, Mani P, and Ramakrishna Kamojhala are each selling shares worth 45 crores and Preetham S V is selling shares of ₹ 30 crores as mentioned in DRHP.

Equirus Capital Private Limited and Anand Rathi Advisors Limited are book running lead managers while KFin Technologies Limited is a Registrar for this Offering. Earlier this year in July, the precision engineering solutions company had raised Rs 250 crore from ValueQuest Scale Fund, Evolvence India Fund IV, and Steadview Capital Mauritius.

The net proceeds of the Fresh Issue will be used to fund a variety of important goals, including the purchase of new machinery and equipment to increase capital expenditure, as well as the build-up of working capital. Additionally, some money will be dedicated to its Material Subsidiary for the same purpose of buying machines and equipment, provision of working capital and retirement or prepayment on certain existing loans. The rest of the funds will be used for general corporate objectives.

They are a key link in the global supply chain for global aerospace, defense, semiconductor, and energy OEMs and their licensees. Their products are characterized by complexity and a “high-mix, low volume nature,” with a wide range of products produced in small quantities based on specific customer requirements.

The profit after tax of Rs 58.1 crore for the financial year 2024 was an increase of 155 per cent over the last year, while revenue in that period increased by 121.7 per cent to reach Impressive Rs 208.8 crore.

Unimech Aerospace and Manufacturing Ltd specializes in manufacturing complex products with “build to print” and “build to specifications” capabilities. They offer machining, fabrication, assembly, testing, and creating new products based on client requirements for aerospace, defense, energy, and semiconductor industries. Their product portfolio includes engine lifting and balancing beams, assembly, disassembly, calibration tooling, ground support equipment, airframe assembly platforms, engine transportation stands, mechanical & electro-mechanical turnkey systems, and precision components.

Unimech Aerospace IPO Prospectus:

Unimech Aerospace Company Financial Report

Amount ₹ in Crores

Unimech Aerospace IPO Valuation – FY2024

Unimech Aerospace IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.

Peer Group Comparison

Objects of the Issue

• Funding of capital expenditure for expansion through purchase of machineries and equipment by
• our Company
• Funding working capital requirements of our Company;
• Investment in our Material Subsidiary for (a) Funding of capital expenditure for expansion through purchase of machineries and equipment; (b) funding its working capital requirements; and (c) repayment / prepayment, in full or part, of certain borrowings;
• General corporate purposes

IPO Lead Managers aka Merchant Bankers

• Anand Rathi Advisors Limited
• Equirus Capital Private Limited