Synopsis: Shares of Unimech Aerospace and Manufacturing soared during their market debut, listing at a premium of nearly 90% over the issue price. The Bengaluru-based company raised Rs 500 crore through its IPO, which garnered an overwhelming subscription rate of 175.31 times.
Unimech Aerospace and Manufacturing made a stellar debut on Dalal Street, significantly outperforming market expectations.
The company’s shares were listed on the BSE at Rs 1,491, marking a premium of 89.94% over its issue price of Rs 785.
On the NSE, the stock began trading at Rs 1,460, reflecting an 85.99% premium.
IPO Details and Performance:
The initial public offering (IPO) was open for bidding from December 23 to December 26, with shares priced in the band of Rs 745-785 each.
Investors could bid for a minimum lot of 19 shares.
The Bengaluru-based company successfully raised Rs 500 crore through the IPO, comprising a fresh issue of Rs 250 crore and an offer-for-sale (OFS) of Rs 250 crore by existing shareholders.
The issue witnessed robust demand, with an overall subscription rate of 175.31 times.
Qualified institutional buyers (QIBs) led the charge, with their allocation subscribed 317.63 times.
Non-institutional investors (NIIs) and retail investors also showed strong interest, subscribing 263.78 times and 56.87 times, respectively. Meanwhile, the employee portion was subscribed 97.81 times.
Grey Market Activity and Market Volatility:
The GMP stood at Rs 625 before the debut, projecting listing gains of approximately 80% for investors.
Business Overview:
Incorporated in 2016, Unimech Aerospace and Manufacturing specializes in producing complex mechanical assemblies, electro-mechanical systems, and components for aeroengine and airframe production.
The company is recognized for its expertise in manufacturing intricate products for the aerospace and defense sectors.
Market Sentiment and Expert Opinions:
Brokerage firms had a favorable outlook on the IPO, with many recommending investors to subscribe. Anand Rathi Securities and Equirus Capital acted as the book-running lead managers, while Kfin Technologies served as the registrar for the issue.
Conclusion:
Unimech Aerospace and Manufacturing’s impressive market debut underscores the growing investor confidence in India’s defense and aerospace sectors.
The IPO’s overwhelming subscription rates and strong listing gains reflect the company’s promising business prospects.
As the stock continues to trade, market participants will closely monitor its performance amid evolving economic and industry dynamics.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers are advised to consult a qualified financial advisor before making any investment decisions.
