Unimech Aerospace raises over Rs 149 crore via anchor book for a Rs 500-crore IPO

Unimech Aerospace & Manufacturing' Rs 500-crore IPO to open on December 23

Engineering solutions provider Unimech Aerospace and Manufacturing has mobilised Rs 149.5 crore through its anchor book launched on December 20, ahead of its IPO. The Rs 500-crore initial share sale is set to open for public subscription on December 23 and close on December 26.

The IPO comprises a fresh issue and an offer-for-sale of Rs 250 crore worth of shares each. Promoters will sell shareholders in the Rs 250 crore offer-for-sale. The price band for the offer has been fixed at Rs 745-785 per share.

The company, in its filing to exchanges on Friday, said it has finalised the allocation of 19.05 lakh equity shares to anchor investors at Rs 785 per equity share.

"Out of the total allocation of 19.05 lakh shares to the anchor investors, 10.16 lakh shares were allocated to 7 domestic mutual funds through a total of 10 schemes," it added.

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The asset management companies participated in the anchor book of Unimech Aerospace IPO are ICICI Prudential Mutual Fund, Axis Mutual Fund, Tata Mutual Fund, HSBC MF, Motilal Oswal AMC, Edelweiss, and Bandhan Mutual Fund.

Apart from fund houses, other global and domestic institutional investors like 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 also invested in the company via anchor book.

The company has reserved half of the issue size for qualified institutional buyers (including up to 60 percent portion for anchor book), 15 percent for non-institutional investors, and the remaining 35 percent for retail investors.

Investors can bid for a minimum of 19 equity shares and in multiples of 19 shares thereafter in the book-built issue.

Unimech Aerospace is expected to be valued at nearly Rs 4,000 crore at the upper price band.

With two manufacturing facilities in Bangalore, the Karnataka-based company specialising in the manufacturing and supply of critical parts such as aero tooling, ground support equipment, electro-mechanical sub-assemblies and other precision engineered components for aerospace, defence, energy, and semiconductor industries competes with listed peers like MTAR Technologies, Azad Engineering, Paras Defence and Space Technologies, Dynamatic Technologies, and Data Patterns.

It has orders in-hand of Rs 80.75 crore as of September 2024, with a delivery timeline ranging between 4 to 16 weeks.

Unimech Aerospace intends to use fresh issue proceeds for expansion through the purchase of machinery and equipment, funding working capital requirements, repaying debt, and general corporate purposes.

Anand Rathi Advisors and Equirus Capital are acting as the merchant bankers for the issue.