Unimech Aerospace Shares List At 90% Premium Over Issue Price

Shares of Unimech Aerospace And Manufacturing Ltd. debuted on the BSE at Rs 1,491 per share, marking a premium of 89.94% over the issue price of Rs 785. The stock listed on the National Stock Exchange at Rs 1,460 apiece, at a premium of 85.99%.

Unimech Aerospace's IPO, which closed on Dec. 26, was subscribed 175.31 times, with demand led by qualified institutional buyers. The Rs 500-crore offering consists of a fresh issue of Rs 250 crore and an offer for sale of Rs 250 crore.

The company also raised nearly Rs 150 crore from anchor investors a day before its IPO opened for bidding.

From net proceeds of the issue, Rs 36.37 crore will be used for funding capital expenditure for expansion through purchase of machinery and equipment. Another Rs 25.29 crore will go towards working capital requirements of the company and for investments in its material subsidiary.

While Rs 43.89 crore will go towards capital expenditure for expansion through purchase of machinery and equipment of material subsidiary, Rs 44.7 crore will go towards its working capital requirements.

The company will use Rs 40 crore for repayment or prepayment of borrowing by the subsidiary.

The OFS comprises a sale of stake worth up to Rs 45 crore each by Ramakrishna Kamojhala, Mani P and Rajanikanth Balaraman; up to Rs 30 crore by Preetham SV; and up to Rs 85 crore by Rasmi Anil Kumar.

Anand Rathi Advisors Ltd., and Equirus Capital Pvt. are the book-running lead managers to the issue and KFin Technologies Ltd. is the registrar to the offer.

The Bengaluru-based firm is a leading manufacturer of complex tooling, mechanical assemblies, electro-mechanical turnkey systems, and precision components for clients in the aerospace, energy and semi-conductor industries. These components are used in aeroengine and airframe tooling for production, maintenance, repair and overhaul, and line maintenance activities.

The company offers a diverse range of products and manufactures relatively small quantities of each, tailored to specific customer requirements.