Unimech Aerospace IPO opens in 2 days: 10 key factors to know from RHP earlier than you subscribe to ₹500 crore situation

Unimech Aerospace IPO: The preliminary public providing (IPO) of Unimech Aerospace is scheduled to open for subscription on Monday, December 23, and can stay open until Thursday, Thursday 26. The corporate goals to boost ₹500 crore by way of the providing, which includes a contemporary situation of 0.32 crore shares price ₹250 crore and a suggestion on the market of 0.32 crore shares, additionally aggregating to ₹250 crore.

The IPO worth band is about at ₹745 to ₹785 per share. Of the overall providing, 50% is reserved for Certified Institutional Patrons (QIBs), 35% for Retail Buyers, and 15% for Non-Institutional Buyers (NIIs).

Anand Rathi Securities and Equirus Capital Personal are the book-running lead managers for the Unimech Aerospace IPO, whereas KFin Applied sciences is the registrar for the difficulty.

Retail buyers can apply for at least 19 shares in a single lot and its multiples thereafter. On the higher finish of the IPO worth band, retail buyers are required to make a minimal funding of ₹14,915 per lot.

Allow us to check out a few of the key factors talked about in Unimech Aerospace’s RHP:

Unimech Aerospace IPO: 10 key issues to know

Concerning the Firm: Unimech Aerospace is a worldwide high-precision engineering options supplier, specialising within the manufacturing of complicated merchandise by way of “construct to print” and “construct to specs” choices.

These processes contain machining, fabrication, meeting, testing, and the creation of recent merchandise tailor-made to the particular necessities of purchasers within the aerospace, defence, vitality, and semiconductor industries.

Its product portfolio consists of engine lifting and balancing beams, meeting, disassembly and calibration tooling, floor help gear, airframe meeting platforms, engine transportation stands, mechanical & electro-mechanical turnkey methods, and precision parts.

Targets of the Concern: The corporate intends to utilise the online proceeds from the contemporary situation to fund capital expenditure for growth by buying equipment and gear, in addition to to fulfill its working capital necessities.

Moreover, a portion of the proceeds shall be invested in its materials subsidiary for buying equipment and gear, funding its working capital wants, and repaying or prepaying sure borrowings availed by the subsidiary, both in full or partially. The remaining funds shall be allotted for common company functions, as per the RHP.

Manufacturing Capability: As of March 31, 2024, the corporate had two manufacturing services, Unit I and Unit II, in Bangalore, that are unfold throughout an combination space of over 120,000 sq. ft. Its facility in Unit I in Peenya, Bangalore, is unfold throughout an space of over 30,000 sq. ft., and its Unit II facility in Devanahalli is located in a Particular Financial Zone (“SEZ”) close to Bangalore Worldwide Airport, which is unfold throughout an space of over 90,000 sq. ft.

Capabilities: As an engineering options supplier, it affords a variety of capabilities, from product conceptualisation to remaining meeting. Its capabilities embody design, engineering, manufacturing, and high quality assurance, enabling it to ship complicated and customised options to its purchasers.

The corporate has manufactured 2,356 SKUs within the tooling and precision complicated sub-assemblies class and 624 SKUs within the precision machined elements class, supplying to greater than 26 clients throughout 7 international locations.

World Alternatives: The corporate is well-positioned in each aerospace and defence GSTE and precision part manufacturing, serving world OEMs and permitted licensees. The Asian area is about to see the biggest fleet growth, with 11,925 plane anticipated by 2042, solidifying its function as a worldwide aviation hub.

Within the vitality sector, there’s rising emphasis on renewable sources like photo voltaic and wind, supported by authorities initiatives. Moreover, India is increasing its nuclear energy capability, with 22 operational reactors and 11 extra anticipated, including 8,700 MW.

Peer Comparability: The corporate considers Azad Engineering, Dynamatic Applied sciences, MTAR Applied sciences, Information Patterns (India), and Paras Defence and Area Applied sciences as listed friends, that are into the manufacturing of sure parts used within the aerospace and defence business.

Financials: Its whole income from operations was ₹2,087.75 million, ₹941.66 million, and ₹363.49 million for fiscal years 2024, 2023, and 2022, respectively. Its EBITDA for the fiscal years 2024, 2023, and 2022 was ₹791.86 million, ₹345.63 million, and ₹77.26 million, respectively, leading to EBITDA margins of 37.93%, 36.70%, and 21.25%.

The corporate PAT elevated from ₹33.92 million in Fiscal 12 months 2022 to ₹228.13 million in Fiscal 12 months 2023 after which to ₹581.34 million in Fiscal 12 months 2024, translating right into a PAT margin of 27.85%, 24.23%, and 9.33% in Fiscal Years 2024, 2023, and 2022, respectively.

Worldwide Gross sales a Key Income Supply: The corporate generates nearly all of its income by way of exports, accounting for 91.06%, 95.20%, and 97.64% of whole income from operations in Fiscal 2022, 2023, and 2024, respectively. Greater than 95% of this income comes from gross sales to its high 10 clients in every of those fiscal years.

Key dangers: A good portion (greater than 94%) of its whole income from operations in every of the final three fiscal years is attributable to the aerospace sector, whereby it manufactures merchandise associated to aero engine tooling and airframe tooling. Any hostile adjustments within the aerospace sector may adversely impression its enterprise, outcomes of operations, and monetary situation.

Allotment and Itemizing Particulars: The allotment of shares for the Unimech Aerospace IPO is anticipated to be finalised on Friday, December 27, 2024. Tentative itemizing on each the BSE and NSE is scheduled for Tuesday, December 31, 2024.

Disclaimer: The views and suggestions given on this article are these of particular person analysts. These don’t characterize the views of Mint. We advise buyers to test with licensed specialists earlier than taking any funding choices.