Unimec Aerospace and Manufacturing Limited’s IPO received 133 times subscription on the third day of share sale. This IPO opened on 23 December and was very popular among investors. The price band was fixed at Rs 785. The issue comprised a fresh issue of Rs 250 crore and an offer for sale (OFS) of Rs 250 crore.
Gray Market Premium (GMP)
investorgain.com According to , Unimec Aerospace’s IPO is trading at a premium of Rs 630 in the gray market. This means that the company’s shares may be listed at a premium of about 81% at the time of listing on BSE and NSE on December 31. The probable listing price is likely to be around Rs 1415.
Key details of IPO
- Issue Size: Rs 500 crore (Rs 250 crore fresh issue and Rs 250 crore offer for sale).
- Use of funds:
- To purchase machinery and equipment.
- Capital expenditure for expansion.
- To meet working capital requirements.
- Capital expenditure of subsidiary companies and repayment of their borrowings.
- For general corporate purposes.
Company Background and Business Model
Unimech Aerospace & Manufacturing Limited was established in 2016. It is a leading engineering solutions provider that manufactures and supplies highly precision and critical equipment and components to the aerospace, defense, energy, and semiconductor industries.
- flagship product:
- aero tooling
- ground support equipment
- Electro-Mechanical Sub-Assembly
- Other Precision Engineered Components.
- Expertise: Manufacturing high quality components and parts for the aerospace and defense industry.
Why is this IPO attractive?
- High Growth Industries: The company’s business spans across fast-growing sectors such as aerospace and defence.
- Strong GMP: The possibility of an 81% premium has piqued investor interest.
- Financial Strength: The funds will be used to fund expansion and meet working capital requirements, thereby boosting the company’s growth.
Special information for investors
This IPO of Unimac Aerospace has created huge enthusiasm among investors. The gray market premium and potential returns on listing have made it one of the most talked about IPOs of 2024. Investors should keep an eye on the company’s performance after the listing on December 31.
