Unimech Aerospace Expanding Into Different Sectors, Says CMD After Bumper Listing

Unimech Aerospace and Manufacturing Ltd., which made a bumper debut on the bourses on Tuesday, is "expanding into different sectors as well", according to Anil Kumar P, its Chairman and Managing Director.

Currently, Unimech Aerospace is "predominantly into aerospace tooling, ground support equipment and precision components", he said, while speaking to NDTV Profit. "The two offerings of aero toolings and ground support equipment are predominantly for commercial aviation.”

In terms of precision components, Unimech Aerospace caters to a number of different industries, the top executive said. "We cater to aerospace, defence, energy, and semiconductor industries. They are kind of, very high complex and low volume in nature. And also, they come with sub-assemblies and subsystems offerings.”

The company will use the funds from its initial public offering for capital expenditure in "two tranches", Anil Kumar P said.

The first phase will cover a "lot of CNC (Computer Numerical Control) machines, equipment, and the building, the infrastructure, those aspects", he explained, adding that the second tranche comes into effect in the next 12 to 18 months.

Notably, the company has raised Rs 250 crore from the fresh issue, which it aims to use for working capital and capex purposes.

Shares of Unimech Aerospace listed at a 90% premium on the stock exchanges, ending 2024 with a bang at a time when IPOs are flourishing in India.

The stock debuted on the BSE at Rs 1,491 per share, logging a premium of 89.94% over the issue price of Rs 785. On the National Stock Exchange, the shares listed at Rs 1,460 apiece, at a premium of 85.99%.

The company's scrip was trading 4.67% higher at 1,440.55 per share as of 12:55 p.m., coming down from the intraday high of 1,484. Meanwhile, the Nifty 50 was 0.48% higher at 23,759.20, following a sharp uptick in the first half of the session.