Unimech Aerospace shares see blockbuster listing, IPO investors’ money nearly doubles as expected

Unimech Aerospace IPO comprised a fresh issue of Rs 250 crore and an offer-for-sale of Rs 250 crore.

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Unimech Aerospace and Manufacturing Ltd shares made a blockbuster stock market debut today in line with street expectations, listing at Rs 1,460 on the NSE -- a premium of 86 percent over the IPO price of Rs 785 per share. The robust opening aligns with the expectations of investors tracking unofficial markets, who were eyeing listing gains of 80-90 percent after the IPO got an overwhelming 175 times oversubscription.

Unimech Aerospace IPO oversubscription set stage for bumper listing

The Rs 500-crore IPO of high-precision engineering solutions provider Unimech Aerospace, comprising a fresh issue of Rs 250 crore and an offer-for-sale of Rs 250 crore, was open for subscription during December 23-26. The public issue garnered a strong response across investor categories, with retail investors subscribing 57 times, non-institutional investors (NIIs) subscribing 264 times, and qualified institutional buyers (QIBs) subscribing 318 times.

“Unimech Aerospace and Manufacturing has generated substantial investor interest. The company is set for a strong debut today,” said Abhishek Pandya, Research Analyst at StoxBox, said ahead of listing. He had expected a potential listing premium of 90 percent over the IPO allotment price.

Also read | Standard Glass Lining sets price band of Rs 133-140 a share for IPO

Unimech Aerospace growth strategy, expansion plan

High-precision engineering company Unimech Aerospace serves the aerospace, defence, energy, and semiconductor industries. With a focus on aggressive capacity expansion, the company plans to double its manufacturing capability in two phases, funded partly by the IPO proceeds.

In addition to organic growth, Unimech is actively pursuing mergers and acquisitions in adjacent sectors such as oil and gas. A significant portion of the Rs 250 crore fresh issue will be allocated to these activities, complementing Rs 250 crore raised in pre-IPO funding specifically for M&A initiatives.

However, Unimech’s client concentration has been flagged as a potential risk. Its largest customer accounts for 55-60 percent of revenue, and the top five clients contribute 95 percent of the total revenue. The company plans to diversify its portfolio and tap into new markets. Analysts said that its focus on high-growth industries, combined with an aggressive expansion strategy, positions the company well for sustained performance.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.