Unimech Aerospace and Manufacturing Limited has announced an initial public offering (IPO) to raise up to ₹5,000 million, with plans to channel the proceeds into critical business objectives. The offering comprises a fresh issue of equity shares worth up to ₹2,500 million and an offer for sale by existing shareholders aggregating up to ₹2,500 million. The equity shares, each with a face value of ₹5, will be offered through a 100% book-building process.
The company intends to allocate a significant portion of the IPO proceeds to support its capital expenditure for acquiring machinery and equipment, enabling business expansion. Funds will also be directed towards meeting working capital requirements and investing in its material subsidiary for similar purposes. Additionally, the proceeds will facilitate the repayment or prepayment of certain borrowings. A portion, not exceeding 25% of the gross proceeds, has been earmarked for general corporate purposes.
Unimech’s IPO structure includes a fresh issue of shares by the company and a sale of shares by five promoter shareholders, including Ramakrishna Kamojhala, Mani P, Rajanikanth Balaraman, Preetham S V, and Rasmi Anil Kumar. Up to ₹15 million worth of shares have been reserved for eligible employees, which will not exceed 5% of the post-offer equity share capital. The shares are proposed to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with BSE as the designated primary exchange.
The allocation of shares will adhere to regulatory guidelines, with up to 50% of the net offer reserved for Qualified Institutional Buyers (QIBs), including anchor investors. At least 15% of the net offer will be available to Non-Institutional Bidders (NIBs), while a minimum of 35% will be allocated to Retail Individual Investors (RIIs). Eligible employees will also have a reserved portion, capped at ₹0.5 million per individual.
The IPO timeline begins with the Anchor Investor Bidding Date set for December 20, 2024. The bid/offer period will run from December 23, 2024, to December 26, 2024. Further updates on the offer, including the price band, will be announced prior to the bidding period.
Unimech Aerospace and Manufacturing Limited, established in 2016, operates manufacturing facilities in Bangalore, Karnataka, focusing on aerospace tooling and manufacturing solutions. The company’s red herring prospectus highlights potential risks for investors and offers detailed materials and financial disclosures for review.
The IPO is being managed by Anand Rathi Advisors Limited and Equirus Capital Private Limited, with KFin Technologies Limited serving as the registrar.