Unimech Aerospace and Manufacturing's IPO has been making waves, with the issue subscribed 9.09 times on the second day of public bidding. The company aims to raise ₹500 crore from the book-built issue, consisting of a fresh equity issuance of up to ₹250 crore and an offer for sale (OFS) of up to ₹250 crore by selling shareholders from the promoter and promoter group.
The IPO price band has been set at ₹745-785 per share, and the grey market premium (GMP) stands at ₹510 per share, indicating a potential listing price of ₹1,295, a premium of 64.97% ¹.
Here are some key highlights of the IPO:
- *Subscription Details*: The Non-Institutional Investors (NII) portion was subscribed 12.07 times, followed by the retail investor portion at 10.30x, and the Qualified Institutional Buyers (QIBs) portion at 4.64x.
- *Financial Performance*: Unimech Aerospace has shown impressive growth, with a compound annual growth rate (CAGR) of 139.7% in revenue between FY22 and FY24, and an EBITDA growth rate of 220.2% during the same period.
- *Valuation*: The issue is valued at a price-to-earnings (P/E) ratio of 59.3x on the upper price band based on FY24 earnings, which is comparatively lower than its peers.
- *Industry Outlook*: The global aircraft Maintenance, Repair and Overhaul (MRO) market is expected to grow, with the Engine MRO segment accounting for ~46% of the total MRO revenue in FY23 and expected to grow to 49% by FY28.
Overall, Unimech Aerospace and Manufacturing's IPO seems to have generated significant interest, with its strong financial performance, attractive valuation, and growth prospects in the aerospace and manufacturing sector.
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