| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 745 to ₹ 785 | 19 | 23rd Dec, 2024 – 26th Dec, 2024 | ₹ 500.00 Cr |
About Unimech Aerospace and Manufacturing Ltd IPO
Incorporated in 2016, Unimech Aerospace and Manufacturing Limited is an engineering solutions provider specializing 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 the aerospace, defence, energy, and semiconductor industries. The company possesses “build to print” capabilities, manufacturing products based on client designs and “build to specifications” capabilities, assisting clients in designing products to be manufactured based on specifications. It supplies high-precision and critical components to major OEMs and their licensees worldwide. The company’s export-oriented business features a diverse product portfolio with a strong focus on quality and timely delivery. Its product portfolio includes, among other items, engine lifting and balancing beams, assembly, disassembly, and calibration tooling, ground support equipment, airframe assembly platforms, engine transportation stands, mechanical and electro-mechanical turnkey systems, and precision components. The company is a key link in the global supply chain for aerospace, defence, semiconductor, and energy OEMs and their licensees. The company’s diverse capabilities enable it to serve customers globally, establishing it as an export-oriented business with clients in the USA, Germany, and the United Kingdom. The company is one of the entities well-positioned in both Aerospace and Defence GSTE and precision component manufacturing in India, catering to global OEMs and their approved licensees. As of the six-month period ended September 30, 2024, the company has two manufacturing facilities, Unit I and Unit II, in Bangalore, spread across an aggregate area of over 1,20,000 sq. ft. These facilities have a combined annual installed capacity of 1,65,945 hours per annum, and an annual actual production of 1,57,123 hours per annum.
Objective of the Unimech Aerospace and Manufacturing Ltd IPO
The company proposes to utilize net proceeds towards funding the following objects:
Þ Funding of capital expenditure for expansion through the purchase of machinery and equipment by the company;
Þ Funding working capital requirements of the company;
Þ Investment in the company’s Material Subsidiary for:
- purchase of machinery and equipment;
- funding its working capital requirements; and
- repayment/prepayment, in full or part, of certain borrowings availed by the company’s Materi al Subsidiary; and
Þ General corporate purposes.
Rationale To Unimech Aerospace and Manufacturing Ltd IPO
Advanced manufacturing capabilities capable of delivering high-precision engineering solutions
The company is a global high-precision engineering solutions provider specializing in manufacturing complex products with “build to print” and “build to specifications” offerings. This involves machining, fabrication, assembly, testing, and creating new products based on the specific requirements of its clients in the aerospace, defense, energy, and semiconductor industries.
The company offers unique dual capabilities:
Build to Print: Manufacturing complex, high-mix, low-volume tools and components based on client designs. Between FY22 and H1FY25, it produced 2,999 tooling and sub-assembly SKUs and 760 precision machined part SKUs for over 26 customers across seven countries.
Build to Specification: Assisting clients in product design by meeting specifications and ensuring functionality to deliver a satisfactory product experience.
The company’s manufacturing capabilities include machining processes such as turning, milling, double-column milling, electro-discharge machining (EDM), and grinding. The company’s end-to-end solutions under one roof enhance value-added offerings, improve operational efficiency, optimize resources, and strengthen customer retention.
Established player with unique capabilities in a sector with high entry barriers
The company specializes in manufacturing complex tooling, mechanical assemblies, electro-mechanical turnkey systems, and precision components. Its diverse product range and ongoing product development have allowed it to serve multiple industries and attract new customers. Between FY22 and H1FY25, the company produced 2,999 SKUs in tooling and precision complex sub-assemblies and 760 SKUs in precision machined parts, serving over 26 customers across seven countries. The company offers a variety of high-mix, highly complex, low-volume products, including engine lifting and balancing beams, ground support equipment, airframe assembly platforms, and engine transportation stands. It adheres to strict quality standards, including AS9100D and BS EN ISO 9001:2015, which are recognized industry norms for aerospace manufacturing. The production process is complex, and the lengthy client approval procedures make it challenging for new entrants to establish facilities for manufacturing similar products. Winning bids require technical expertise, competitive pricing, and strict adherence to quality and delivery standards. Scaling operations in a high-mix, low-volume manufacturing environment is intricate, demanding a skilled workforce, robust infrastructure, and consistent execution. Maintaining this balance while ensuring high quality is a significant challenge for new entrants. The company has established itself as an approved supplier for various leaders in the aerospace, defense, semiconductor, and energy industries.
Valuation of Unimech Aerospace and Manufacturing Ltd IPO
Incorporated in 2016, Unimech Aerospace and Manufacturing Limited specializes in the manufacture of complex tools, including mechanical assemblies, electromechanical systems, and components for aero-engine and airframe production. The company provides engineering solutions tailored to meet clients’ specific requirements in industries such as aerospace, defense, energy, and semiconductors. Their offerings include “build to print” and “build to specifications,” which encompass machining, fabrication, assembly, testing, and the development of new products. The Asian region is expected to witness the largest fleet expansion, with an anticipated addition of 11,925 aircrafts by 2042, solidifying its status as a global aviation leader. In the energy sector, there is a growing focus on renewable energy sources, including solar and wind, along with government support for cost-effective and environmentally friendly projects. Notable Asian countries with advanced semiconductor manufacturing capabilities include Taiwan, South Korea, China, and Japan, while India is emerging as a key player in the precision components sector for the chip manufacturing industry. Unimech’s systems and processes ensure efficient order fulfilment and on-time delivery. As of September 2024, the company had an order backlog valued at Rs. 807.52 million, with delivery timelines ranging from 4 to 16 weeks. In terms of financial performance, Unimech is the fastest-growing company in its sector, having recorded an impressive compound annual growth rate (CAGR) of 139.7% in revenue between FY22 and FY24. Their EBITDA saw a remarkable growth rate of 220.2% during the same period. Additionally, Unimech achieved the third-highest PAT margin of approximately 27.9% in FY24, up from 24.2% in FY23. The issue is valued at a price-to-earnings (P/E) ratio of 59.3x on the upper price band based on FY24 earnings, which is comparatively lower than its peers. Considering the company’s strong financial performance, industry tailwinds & attractive valuation, we recommend a “SUBSCRIBE” rating for this issue.
What is the Unimech Aerospace and Manufacturing Ltd IPO?
Unimech Aerospace IPO is a book built issue of Rs 500.00 crores. The issue is a combination of fresh issue of 0.32 crore shares aggregating to Rs 250.00 crores and offer for sale of 0.32 crore shares aggregating to Rs 250.00 crores. Login to your account now.
How to apply for the Unimech Aerospace and Manufacturing Ltd IPO through StoxBox?
To apply for the Unimech Aerospace and Manufacturing Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Unimech Aerospace and Manufacturing Ltd IPO open?
Unimech Aerospace and Manufacturing Ltd IPO is opening on 23rd December 2024. Apply Now
What is the lot size of the Unimech Aerospace and Manufacturing Ltd IPO?
The Lot Size of Unimech Aerospace and Manufacturing Ltd IPO is 19 equity shares . Login to your account now
When is the Unimech Aerospace and Manufacturing Ltd IPO allotment date?
The allotment Date for Unimech Aerospace and Manufacturing Ltd IPO is 27th December 2024. Login to your account now.
When is the Unimech Aerospace and Manufacturing Ltd IPO listing date?
The listing Date for Unimech Aerospace and Manufacturing Ltd IPO is 31st December 2024. Login to your account now
What is the minimum investment required for the Unimech Aerospace and Manufacturing Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,915. Login to your account now
What is the maximum investment allowed for the Unimech Aerospace and Manufacturing Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 193,895. . Login to your account now
What are the risks associated with investing in the Unimech Aerospace and Manufacturing Ltd IPO?
- The company’s business is heavily reliant on exports, with 95.6% and 97.6% of total revenue from operations in the six months ended September 30, 2024 and FY24, respectively, coming from exports. Adverse changes in global market conditions, particularly in key markets like the United States and Germany, could negatively affect the company’s business, cash flows, operations, and financial condition
- The customer on-boarding process can take up to three years, potentially causing delays in revenue generation. This reliance on trust-building for scaling operations may negatively impact the company’s financial condition and future results.
- The company’s business operates on a longer gestation period, with a time gap of 7 to 28 weeks between receiving an order and receiving payment, impacting its working capital requirements.
When will the Unimech Aerospace and Manufacturing Ltd IPO shares be credited to my Demat account?
The Unimech Aerospace and Manufacturing Ltd IPO be credited to the account on allotment date which is 30th December 2024. Login to your account now
Where can I find the Unimech Aerospace and Manufacturing Ltd IPO prospectus?
The prospectus of Unimech Aerospace and Manufacturing Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
What are the important dates related to Unimech Aerospace and Manufacturing Ltd IPO?
| IPO Open Date | Monday, December 23, 2024 |
| IPO Close Date | Thursday, December 26, 2024 |
| Basis of Allotment | Friday, December 27, 2024 |
| Initiation of Refunds | Monday, December 30, 2024 |
| Credit of Shares to Demat | Monday, December 30, 2024 |
| Listing Date | Tuesday, December 31, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 26, 2024 |
