Unimech Aerospace and manufacturing ipo review

 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.

Comments