The Unimech Aerospace IPO is making waves among investors. It will open for subscription from December 23 to December 26. With impressive subscription figures, it’s worth diving into the details. This article will cover the company’s financials, IPO details, and if you should invest.
Unimech Aerospace IPO – Key Highlights and GMP
Investors first look at the Grey Market Premium (GMP). The GMP for Unimech Aerospace is ₹610. This means a potential listing gain of about ₹77 per share. Investors could see profits of up to ₹1,000 per lot. But, GMP can change based on market conditions.
About Unimech Aerospace – Business Model and Growth Potential
Unimech Aerospace and Manufacturing Limited started in 2016. It makes high-end tools and parts for aircraft engines and airframes. These parts are key for assembly, maintenance, and repairs in the aerospace sector.
Between 2022 and 2024, Unimech Aerospace made over 2,300 unique tools and assemblies. It supplied them to 26 clients in seven countries. As of March 2024, it has around 384 employees.
The aerospace manufacturing sector is hard to enter. But Unimech Aerospace has a strong position, which helps its growth.
Unimech Aerospace IPO – Detailed IPO Information
- IPO Price Band: ₹745 to ₹785 per share
- Total Issue Size: ₹500 crore
- Fresh Issue: A big part of the IPO is fresh equity, with the rest being an offer-for-sale.
- Lot Size: One lot is 19 shares, needing a minimum investment of ₹14,491.
- IPO Timeline: Subscription ends on December 26, and listing is expected on December 31.
Financial Performance – Unimech Aerospace
The company has shown steady financial growth. As of September 30, 2024, Unimech Aerospace has assets worth about ₹500 crore.
Revenue Growth (YoY):
- FY22: ₹1,113 crore
- FY23: ₹2,213 crore
- FY24: ₹3,058 crore
Profit After Tax (PAT):
- FY22: ₹3 crore
- FY23: ₹22 crore
- FY24: ₹58 crore
The company keeps a good balance of reserves and surplus. Although it has a debt of ₹74 crore, its debt-to-equity ratio is 0.32, which is manageable.
Fundamentals and Valuation – Is Unimech Aerospace IPO Worth It?
Unimech Aerospace has strong profitability metrics like ROE, ROA, and profit margins. Its profit margin is 27%. The company’s Price-to-Earnings (P/E) ratio is around 64, which is in line with or lower than its peers.
When compared to competitors, Unimech Aerospace’s valuation seems fair. This supports its growth potential.
Market Demand and Subscription Analysis
The IPO has seen strong demand during the subscription phase. This shows investors are very interested. This demand could lead to positive listing gains.
Should You Apply for the Unimech Aerospace IPO?
After looking at Unimech Aerospace’s strong financials, industry position, and market demand, this IPO looks promising. But, investors should do their homework and think about their investment goals before applying.
For those interested in the aerospace manufacturing sector, Unimech Aerospace offers a great opportunity.
Keep an eye on GMP and subscription trends leading up to the listing date for the best investment choice.