Unimech Aerospace IPO: Should you subscribe? Know price band, issue size, lot size and more

The initial public offering (IPO) of Unimech Aerospace and Manufacturing Limited opened for subscription on December 23 and will conclude on December 26. The company has launched the IPO with a total issue size of Rs 500 crore. Ahead of the issue, the company mobilised Rs 149.5 crore from anchor investors on December 20. The price band is fixed between Rs 745 and Rs 785 per share.

The Rs 500 crore comprises a fresh issue of up to Rs 250 crore and an offer-for-sale (OFS) of up to Rs 250 crore.

Brokerages recommend subscribing to the IPO

Several domestic brokerages, including SBI Securities, Hem Securities and KRChoksey have suggested subscribing to the issue.

SBI Securities has recommended to subscribing the IPO at the upper price band (Rs 785). The brokerage also cited that Unimesh Aerospace is valued at an FY25 annualised P/E multiple of 51.6x on post-issue capital which is at a discount to its peers like Dynamatic Technologies, Data Patterns India, Azad Engineering, MTAR Technologies, and Paras Defence.

Another domestic brokerage, Hem Securities has a 'subscribe' rating on the IPO. According to it, the company's upper price band price to earnings is at 52x on the post-issue basis.

Ventura Securities recommends subscribing to the issue, citing that the company’s strengths include cutting-edge manufacturing capabilities, a digital-first approach, a strong vendor network, and high entry barriers in its niche sector.

"Backed by an experienced management team, Unimech is poised for growth as it prepares to launch its IPO," Ventura Securities noted.

According to KRChoksey's analysts, Unimech's valuation appears attractive among its peers. They have suggested subscribing to the IPO.

Unimech Aerospace IPO Key Details: Lot size, allotment date and other details

Lot size of the IPO is 19 shares.

Unimech Aerospace IPO | Allotment date

The allotment date of Unimech Aerospace IPO is fixed on Friday, December 27.

Unimech Aerospace IPO | Listing Date

The Unimech Aerospace stock will debut on Tuesday, December 31, 2024.

Key Details of Unimech Aerospace IPO; BRLMs & registrar

Book Running Lead Managers (BRLMs): Anand Rathi Advisors, and Equirus Capital.

Official Registrar: KFin Technologies