A Bengaluru based company, Unimech Aerospace and Manufacturing Limited, received green light from the market regulator the Securities and Exchange Board of India (SEBI) to raise Rs 500 crore through an Initial Public Offering (IPO).

The offering is divided into two parts: a fresh issue of equity shares worth Rs 250 crore and an offer for sale (OFS) of up to Rs 250 crore by existing promoters and shareholders.

Details of the IPO

The Unimech IPO will have a face value of Rs 5 per share.

The OFS portion will see equity shares being sold by key promoters like Ramakrishna Kamojhala, Mani P, and others, with amounts ranging from Rs 30 crore to Rs 85 crore.

Fund Utilisation

The fresh issue proceeds will be used for several key purposes, such as funding capital expenditure for the purchase of new machinery, boosting working capital, and repaying some of the company’s borrowings.

Here is the Breakdown:

Capital Expenditure for Expansion- Rs 32.59 crore

Working Capital Requirements- Rs 25.28 crore

Investment in Subsidiary- Rs 43.94 crore

Repayment of Borrowings- Rs 40 crore

General Corporate Purposes- Remaining amount

Book-running lead managers and registrar

Anand Rathi Advisors Limited, and Equirus Capital Private Limited are the book-running lead managers to the issue and KFin Technologies Limited is the registrar to the offer.

About the company

The company was founded in 2016 and offers services like machining, fabrication, assembly, and testing. Its products range from engine lifting beams to ground support equipment, catering primarily to the aerospace industry.

Financial Highlights

In financial year 2024, the company’s revenue increased by 121.71 per cent, reaching Rs 208.77 crore compared to Rs 94.17 crore in the previous year.

Profit after tax (PAT) saw reported a surge, rising by 154.83 per cent to Rs 58.13 crore from Rs 22.81 crore in Fiscal 2023.