Unimech Aerospace Files for ₹500 Crore IPO to Fuel Expansion

21 Aug 2024 , 11:40 AM

Unimech Aerospace and Manufacturing Ltd has filed draft papers with SEBI for a ₹500-Crore Initial Public Offering (IPO).

The IPO includes a fresh issue of equity shares worth ₹250 Crore and an Offer For Sale (OFS) of up to ₹250 Crore by the promoter and promoter group. A portion of the offer is reserved for subscription by eligible employees.

The funds raised from the fresh issue will be used for expansion, including the purchase of machinery and equipment, funding working capital, investing in its material subsidiary, debt repayment, and general corporate purposes.

Unimech Aerospace is a precision engineering company that provides complex manufacturing solutions for the aerospace, defense, energy, and semiconductor industries.

The company recently raised ₹250 Crore through private placement financing from investors such as Steadview Capital Mauritius Ltd, ValueQuest, and Evolvence. Anand Rathi Advisors Ltd and Equirus Capital Private Ltd are the book-running lead managers for the IPO.

Unimech is AS9100 Rev D and ISO45001 certified, specializing in manufacturing and supplying complex tooling, mechanical assemblies, structural fabrications, and precision components for aerospace, defense, power generation, and semiconductor sectors.

Over 90% of Unimech’s sales come from exports to global OEMs and tier 1 suppliers, making it a significant player in the global market and a supporter of the domestic defense industry.

The company boasts a skilled team with expertise in engineering design, manufacturing, business analysis, strategic planning, quality control, and operations management. Unimech is one of the few Boeing-approved suppliers in India, serving major companies like Boeing, Collins Aerospace, Mitsubishi, Eaton, and LAM Research.