Unimech Aerospace And Manufacturing Files Draft Papers To Raise Rs.500 Crore Via IPO

Bangalore-based Unimech Aerospace and Manufacturing Limited has announced its plan to raise Rs.500 crore through an initial public offering (IPO). The company, which specializes in precision engineering solutions for aerospace, defense, energy, and semiconductor industries, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).

What’s in the IPO Deal?

The IPO will consist of a fresh issue of equity shares worth Rs.250 crore and an offer-for-sale (OFS) of shares valued at Rs.250 crore. Promoters Ramakrishna Kamojhala, Mani P, and Rajanikanth Balaraman will each sell shares worth Rs.45 crore in the OFS. Additional shares worth Rs.30 crore and Rs.85 crore will be sold by other promoters Preetham S V and Rasmi Anil Kumar, respectively.

IPO Fund Allocation 

Proceeds from this IPO issue will be allocated to a number of growth initiatives:

• Rs.32.82 crore for purchasing machinery and equipment
• Rs.25.3 crore for working capital
• Rs.128.86 crore for investment in a material subsidiary
• The remaining funds will be used for general corporate purposes.

Money Matters

In FY24, Unimech Aerospace saw a huge increase in revenue, which soared by 121.7% to Rs.208.8 crore from Rs.94.2 crore in FY23. The company’s net profit also surged by 155% to Rs.58.1 crore. According to the reports, exports contributed 97.64% to the company’s revenue in FY24.

Market & Investors 

The IPO is being managed by Anand Rathi Advisors and Equirus Capital as the lead managers. The share offer will be divided among qualified institutional buyers (50%), non-institutional bidders (15%), and retail investors (35%). Unimech had previously secured Rs.250 crore from investors such as Steadview Capital Mauritius, ValueQuest, and Evolvence India Fund IV through private placements.

Conclusion: In conclusion, Unimech Aerospace’s IPO is a big step to fuel its growth. With good revenue and profit boosts, the company is set to use the Rs.500 crore to ramp up its operations and further strengthen its market position. This funding will help Unimech invest in new equipment, cover working capital, and support its ongoing expansion, keeping it competitive in the precision engineering game.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.