Unimech Aerospace and Manufacturing’s initial public offering (IPO) has created a significant buzz in the market as it continues to draw strong investor interest on Day 2 of the subscription process. The company, which opened its IPO on December 23, 2024, plans to raise ₹500 crore through a combination of a fresh equity issuance and an offer for sale (OFS).
Unimech Aerospace IPO: A Quick Overview
Unimech Aerospace, an engineering solutions company, has set a price band of ₹745-785 per share for its IPO. The issue is divided into a ₹250 crore fresh issuance of shares and an equal amount through the offer for sale. The offer for sale portion will see promoters and promoter group members divesting their stakes in the company. Notably, figures released so far indicate strong demand for the shares.
The IPO was initially supported by a ₹149.5 crore anchor book, which was filled on December 20, 2024, ahead of the public subscription that started on December 23. The IPO is set to close on December 26, 2024.
Subscription Details on Day 2
As of Day 2, the Unimech Aerospace IPO has garnered remarkable interest, with the overall subscription reaching 5.97x. The retail category, in particular, has led the charge with a subscription rate of 6.96x. This indicates a strong preference for the offering among individual investors. Below is a detailed breakdown of the subscription figures as of 11:24 AM on December 24:
- Retail Individual Investors (RIIs): 6.96x oversubscribed, with bids for 1,04,50,988 shares.
- Non-Institutional Investors (NIIs): 6.71x oversubscribed, with bids for 40,46,335 shares.
- Qualified Institutional Buyers (QIBs): 3.62x oversubscribed, with bids for 33,28,249 shares.
Additionally, the employee quota has been oversubscribed 6.48 times, with 1,30,530 shares bid for, reflecting a high level of internal interest in the company’s IPO.
Market Response and GMP
The response to Unimech Aerospace’s IPO has been strong across the board. As the issue gathers momentum, the company is expected to capitalize on the growing interest in India’s aerospace and defence sectors. The company’s plans to diversify and enhance its operations, particularly with its growing footprint in aerospace manufacturing and maintenance, have attracted significant market interest.
While the IPO is still in its early days, the strong interest in the retail portion points to confidence in the company’s long-term prospects. Moreover, the grey market premium (GMP) for Unimech Aerospace shares has been reported at ₹50-₹60, suggesting positive sentiment for the stock in the secondary market once it lists.
What Lies Ahead for Unimech Aerospace
As Unimech Aerospace’s IPO continues to gain traction, the strong subscription rates indicate that investors are betting on the company’s future in the rapidly expanding aerospace and aviation industries. With its expertise in aerospace manufacturing and MRO (maintenance, repair, and overhaul) services, the company is well-positioned to benefit from the growth of the Indian aviation market.
Additionally, the company’s established operations and long-term prospects in a high-demand sector such as aerospace manufacturing are likely to continue driving investor interest as the IPO progresses toward its closing date on December 26.
