Unimech Aerospace And Manufacturing Ltd. will launch its initial public offering on Dec. 23 at a price band of Rs 745-785 per share to raise Rs 500 crore.
The proposed public offering consists of a fresh issue of Rs 250 crore and an offer-for-sale component of Rs 250 crore, according to the draft red herring prospectus. Market value at the upper end of the price band as per NDTV calculations is Rs 3,992 crore.
The offer for sale consists of sale of equity shares up to Rs 45 crore by Ramakrishna Kamojhala, up to Rs 45 crore by Mani P, up to Rs 45 crore by Rajanikanth Balaraman and up to Rs 30 crore by Preetham S V. Rasmi Anil Kumar, the promoter group, will offload stocks worth Rs 85 crore.
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 equity shares are proposed to be listed on both Bombay Stock Exchange and National Stock Exchange.
Use Of Proceeds
Net proceeds from the issue, amounting to Rs 32.5 crore, will be used for funding capital expenditure for expansion through purchase of machinery and equipment. A total of Rs 25.2 crore will go towards working capital requirements of the company and for investments in its material subsidiary.
While Rs 43.9 crore will go towards capital expenditure for expansion through purchase of machinery and equipment, Rs 44.7 crore will go towards working capital. The company will use Rs 40 crore for repayment or prepayment of borrowing and towards general corporate purposes.
Unimech Aerospace Business
The Bengaluru-based firm is a leading manufacturer of complex tooling, mechanical assemblies, electro-mechanical turnkey systems, and precision components. 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.
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