 |
|
Unimech Aerospace & Manufacturing, a provider of engineering solutions, successfully launched its initial public offering (IPO) anchor book, raising a significant ₹149.5 crore. This successful fundraising precedes the official opening of the ₹500 crore IPO, scheduled to commence on December 23rd and conclude on December 26th. The IPO is structured with a dual offering: a fresh issue and an offer-for-sale, each contributing ₹250 crore to the total offering. Promoters will participate in the offer-for-sale portion, selling their shares to investors. The price band for the shares has been fixed within a range of ₹745 to ₹785 per share, providing investors with a defined price range for participation. The allocation of 19.05 lakh equity shares to anchor investors at the higher end of the price band, ₹785 per share, signifies strong early investor confidence in the company's prospects.
A detailed breakdown of the anchor investor participation reveals a diverse range of institutional investors. Notably, seven domestic mutual funds, participating through ten different schemes, received a significant allocation of 10.16 lakh shares. These mutual funds include prominent names in the Indian investment landscape such as ICICI Prudential Mutual Fund, Axis Mutual Fund, Tata Mutual Fund, HSBC MF, Motilal Oswal AMC, Edelweiss, and Bandhan Mutual Fund. Their participation underscores the attractiveness of the Unimech Aerospace investment opportunity for a wide range of investors. Beyond mutual funds, other substantial investments were made by global and domestic institutional investors, indicating broad-based interest and confidence in the company's future. These investors include Goldman Sachs, Ashoka India Equity Investment Trust, Sunil Singhania's Abakkus Diversified Alpha Fund, Copthall Mauritius, Clarus Capital, VQ Fastercap Fund, Kotak Mahindra Life Insurance, and Natixis International Funds.
The allocation of shares in the IPO demonstrates a considered approach to investor participation. Qualified institutional buyers (QIBs), including a significant portion reserved for the anchor book (up to 60 percent), will receive a substantial allocation. Non-institutional investors will receive 15 percent of the issue, while retail investors, an important segment of the market, will have access to 35 percent of the shares. This allocation strategy aims to balance the interests of different investor classes and ensure broad participation. The minimum bid size for investors is set at 19 equity shares, with further bids in multiples of 19 shares. This relatively low minimum bid size aims to promote broader retail investor participation. Based on the upper price band, Unimech Aerospace is projected to achieve a valuation of approximately ₹4,000 crore upon successful completion of the IPO. This valuation reflects the market's expectation for the company's future growth and profitability.
Unimech Aerospace's operations are centered in Bangalore, Karnataka, where it maintains two manufacturing facilities. The company's specialization lies in the manufacturing and supply of critical components, including aero tooling, ground support equipment, electro-mechanical sub-assemblies, and other precision-engineered components. These components cater to various demanding sectors, including aerospace, defense, energy, and semiconductors. The company's competitive landscape includes listed peers such as MTAR Technologies, Azad Engineering, Paras Defence and Space Technologies, Dynamatic Technologies, and Data Patterns. This competitive landscape suggests that Unimech Aerospace operates within a well-established and growing sector. The company's current order book stands at a healthy ₹80.75 crore as of September 2024, with delivery timelines ranging from 4 to 16 weeks. This indicates a strong near-term revenue outlook and operational efficiency.
The proceeds generated from the fresh issue portion of the IPO are earmarked for strategic investments. A significant portion will be dedicated to expansion, which includes the acquisition of machinery and equipment to enhance production capacity. Working capital requirements will also be addressed to facilitate smooth operations and timely delivery of orders. Furthermore, a portion of the proceeds is intended for debt repayment, strengthening the company's financial position. Finally, a portion of the funds will be used for general corporate purposes, providing flexibility to address emerging opportunities and manage the overall growth of the business. Anand Rathi Advisors and Equirus Capital are serving as the merchant bankers for this IPO, guiding the company through the process and ensuring regulatory compliance. The successful fundraising through the anchor book, coupled with the well-defined IPO structure, positions Unimech Aerospace for a strong start in the public markets.
Source: Unimech Aerospace raises over Rs 149 crore via anchor book for a Rs 500-crore IPO