Mumbai: Unimech Aerospace and Manufacturing Limited’s (UAML) is coming out with its Initial Public Offering (IPO) priced at Rs 745 to Rs 785 per Equity Share – aggregating Rs 500 crores – which will be opening on December 23 and closing on 26, 2024.
The IPO is a mix of fresh issue upto Rs 2,500 million and an Offer for Sale upto Rs 2,500 million.
The proceeds from the fresh issue to the extent of Rs 363.66 million will be used for funding capital expenditure for expansion through purchase of machineries and equipment by the Company; Rs 252.85 million for funding working capital requirements of the Company; Rs 438.91 million for funding of capital expenditure of the material subsidiary for expansion through purchase of machineries and equipment; Rs 447.15 million for funding working capital requirements of the material subsidiary; and Rs 400 million for repayment / prepayment of borrowings by the material subsidiary, in full or part, of certain borrowings; and general corporate purposes.
Anil Kumar P, CMD, (UAML), said that 94% of its products are “Build to Print” and 6% is “Build to Specifications,” besides the major revenue coming in from the U.S. market and manufacturing of each module needing several hundred types of complex, intricate tools.
Noting that the company has its own tech platform, Ramakrishna Kamojhala, CFO, UAML, said its Revenue for FY24 is Rs 2,087.75 million with most of the revenue coming in from exports (97.64% FY24), besides manufacturing for the defence and energy sector.
“We are seeking CAPEX for product development, market development in strategic regions and reaching new markets, focusing on growth through opportunities in organic acquisitions and partnerships with customers.
Incorporated in the year 2016, Unimech Aerospace and Manufacturing Limited 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.
The company supplies high precision and critical components to major OEMs and their licensees around the globe.
Unimech’s product range includes 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, as well as precision components.
Based in Bengaluru, the Company is a key link in the global supply chain for global aerospace, defence, semi-conductor and energy OEMs and their licensees for the supply of critical parts like aero tooling, ground support equipment, electro-mechanical sub-assemblies and other precision engineered components. Its key clients include some of the world’s top airframe and aero-engine OEMs and their approved licensees.
Anand Rathi Advisors Limited, and Equirus Capital Private Limited are the book-running lead managers, and KFin Technologies Limited is the registrar of the issue.
