Unimech Aerospace and Manufacturing Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹785
Per ShareLot Size
19 Shares
Minimum Investment
₹14,915
Issue Size
₹500 Cr
Face Value
₹5
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Unimech Aerospace and Manufacturing Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
91.83%
Promoter Holding (Post-Issue)
79.82%
Issue Type
Book Building
ISIN
INE0U3I01011
About the Company
We are an engineering solutions company specializing in 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. We possess "build to print" capabilities, wherein we manufacture products based on client designs, and "build to specifications" capabilities, wherein we assist clients in designing the products to be manufactured basis specifications. We supply high precision and critical components to major OEMs and their licensees worldwide. Our export-oriented business has a diverse product portfolio and strong focus on quality and timely delivery.
Industry Overview
Global air travel spends had amounted to USD 876 billion in 2019 and is further expected to surpass the USD 1 trillion mark in 2024. As the aviation industry continues to expand, driven by increasing air travel demand and fleet modernization initiatives, the aircraft MRO market also experiences significant growth and evolution in tandem. MRO services encompass a wide range of activities, including scheduled maintenance checks, unscheduled repairs, component replacement, and overhaul services. Aerospace and defence industries rely heavily on precision tooling to manufacture high-performance components which includes machining components, tooling materials & coatings, assembly & fastening etc. The Ground Support Tooling Equipment (GSTE) are used in manufacturing and maintenance of the aircraft. The touch points of Ground Support Tooling Equipment providers are across three phases in both Engine and Aircraft manufacturing and maintenance. We are one of the companies which is well positioned in both Aerospace and Defence GSTE and precision component manufacturing in India catering to global OEMs and their approved licensees.
Company History
Our Company was originally incorporated as "Unimech Aerospace and Manufacturing Private Limited" under the provisions of the Companies Act, 2013 pursuant to a certificate of incorporation dated August 12, 2016, issued by the Central Registration Centre, for and on behalf of the Jurisdictional Registrar of Companies, Karnataka at Bangalore ("RoC"). The name of our Company was subsequently changed to "Unimech Aerospace and Manufacturing Limited", upon conversion of our Company from a private limited to a public limited company, pursuant to a board resolution dated February 14, 2024, and a shareholders' resolution dated March 4, 2024. A fresh certificate of incorporation dated June 21, 2024, was issued by the RoC.
Products & Services
- The Company is an engineering solutions company specializing in 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.
Growth Strategy
- Market Development: Enhancing our global footprint in strategic regions, thereby enriching the customer experience for our existing clientele and expanding our reach to new markets.
- Market Penetration: Capturing a higher market share and increase in wallet shares from customers.
- Capacity Expansion Strategies: Increasing manufacturing capacity and collaborative manufacturing with global and local manufacturers for growth.
- Diversification: Focus on growth by opportunistic inorganic acquisitions and partnerships with customers.
- Product Development: Manufacturing of products including semiconductor manufacturing equipment, medical devices, robotics and other industries which require high-mix, low-volume.
Customer Base
Wholesaler and Retailer
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 63,69,426 equity shares of face value of Rs. 5/- each ("Equity Shares") of Unimech Aerospace And Manufacturing Limited (The "Company" or The "Company" or The "Issuer") for cash at a price of Rs. 785 per equity share (Including a Premium of Rs. 780 per Equity Share) (The "Offer Price") aggregating to Rs. 500.00 crores (The "Offer") comprising a fresh issue of 31,84,713 equity shares of face value of Rs. 5/- each by the company aggregating to Rs. 250.00 crores (The "Fresh Issue") and an offer for sale of 31,84,713 equity shares of face value of Rs. 5/- each aggregating to Rs. 250.00 crores (The "Offer for Sale"), comprising 5,73,248 equity shares of face value of Rs. 5/- each aggregating to Rs. 45.00 crores by Ramakrishna Kamajhola, 5,73,249 equity shares of face value of Rs. 5/- each aggregating to Rs. 45.00 crores by Mani P, 5,73,248 equity shares of face value of Rs. 5/- each aggregating to Rs. 45.00 crores by Rajanikanth Balaraman, 3,82,166 equity shares of face value of Rs. 5/- each aggregating to Rs. 30.00 crores by Preetham S V and 10,82,802 equity shares of face value of Rs. 5/- each aggregating to Rs. 85.00 crores by Rasmi Anil Kumar (Referred to as The "Selling Shareholders" and such equity shares offered by the selling shareholders, the "Offered Shares"). The offer includes a reservation of 19,108 equity shares of face value of Rs. 5/- each, aggregating to Rs. 1.50 crores, for subscription by eligible employees not exceeding 5 % of the post-offer paid-up equity share capital (The "Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer constitutes 12.52 % and 12.49 %, respectively, of the post-offer paid-up equity share capital of the company. The face value of the equity share is Rs. 5/- each and the offer price is 157 times the face value of equity share.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- We are a global high precision and engineering solutions company with capabilities to manufacture under two models: (i) build to print and (ii) build to specifications, for our customers.
- We have established ourselves as an approved supplier for various industry leaders in aerospace, defence, semi-conductor and energy sectors.
- We have developed and have a potential to further evolve our facilities to cater to all the specific and changing needs and requirements of the customers with respect to the products we make and for the industry we supply products to, allowing us to provide customized and tailored solutions.
- We are a leading exporter of aerospace components, with exports significantly contributing to our overall revenue.
- We have a global delivery service model for supplying products to our customers, which includes logistical support and direct export to various companies including USA and Europe.
- A significant portion of its total revenue from operations i.e. 98.25%, 99.35%, 94.70% and 95.84% in the six months period ended September 30, 2024, Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively is attributable to the aerospace sector wherein its manufacture products pertaining to aero engine tooling and airframe tooling. Any adverse changes in the aerospace sector could adversely impact its business, results of operations and financial condition.
- The company is dependent on its top five customers who contribute to 94.62%, 96.80%, 93.88% and 88.97% of its total revenue from operations in the six months period ended September 30, 2024, Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively and the loss of any of these customers or a significant reduction in purchases by any of them could adversely affect its business, results of operations and financial condition.
- Its business works on a longer gestation period wherein, there is considerable time gap of 7 to 28 weeks between the receipt of order and the payment, thereby, affecting its working capital requirements.
- Its business is dependent on exports and the performance of geographies where the company supply its products. 95.67%, 97.64%, 95.20% and 91.06% of the company total revenue from operations in the six months period ended September 30, 2024, Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively came from exports. Any adverse changes in the conditions affecting the industries in global markets in which its products are supplied, including its key markets such as United States and Germany, can adversely impact its business, cash flows, results of operations and financial condition.
- A significant part of its operations i.e. 83.46%, 89.35%, 73.50% and 68.06% in the six months period ended September 30, 2024, Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively were conducted through its Material Subsidiary, Innomech Aerospace Toolings Private Limited ("Innomech"), and the company is dependent on the operating income and cash flows generated by Innomech. Any loss or reduction in the business attributable to its subsidiary, or a change in the company shareholding in Innomech, could have a material adverse effect on its business, prospects, results of operations, cash flows and financial condition on a consolidated basis.