Unimech Aerospace and Manufacturing Limited IPO (Unimech Aerospace IPO) Detail – Date, Price, Review, Valuation & Financials

Unimech Aerospace IPO Detail Review –

Unimech Aerospace IPO is set to open for subscription from 23rd Dec 2024 to 26th Dec 2024. In this article we will analyze the financials , strengths and weaknesses of the Unimech Aerospace IPO. Keep scrolling below to read more!

Unimech Aerospace IPO Overview –

Established in 2016, Unitech Aerospace and Manufacturing Limited is engaging in the manufacturing of complex tools like mechanical assemblies, electro-mechanical systems, and components for aeroengine and airframe production.

The company is an engineering solutions provider specializing in the manufacturing of complex products with “build to print” and “build to specifications” offerings. This involves machining, fabrication, assembly, testing, and creating new products based on the specific requirements of clients in the aerospace, defense, energy, and semiconductor industries.

Between Year 2022 and Year 2024, They have manufactured 2,356 SKUs in tooling and precision complex sub-assemblies category and 624 SKUs in the precision machined parts category, supplying to more than 26 customers across 7 countries.

As of March 31, 2024, the company operates two manufacturing facilities in Bangalore, covering a total area of over 1,20,000 sq ft. Unit I, located in Peenya, spans over 30,000 sq ft, while Unit II, situated in a Special Economic Zone near Bangalore International Airport, covers over 90,000 sq ft. These facilities are registered with ISO.

As of March 31, 2024, The Company had 384 employees.

Products:

  • Aero Engine tooling: Engine lifting and balancing beams,Oil Tubes Alignment Fixture, Radial Centering Support etc.
  • Airframe tooling: Lateral Spar Assembly, Drill Jig, Airframe Assembly Platforms
  • Precision Parts: Missile Component, Missile Component
  • Precision Sub System: Rocker Arm – HMC CDA

Competitive Strenghths:

  • Advanced manufacturing capabilities capable of delivering high precision engineering solutions
  • Digital-first manufacturing company with a robust infrastructure facilitating seamless integration of operations
  • Established player with unique capabilities in a sector with high barriers to entry
  • Export driven player with a global delivery service model
  • Robust vendor ecosystem and strong sub-contractor management with proven execution capabilities
  • Experienced and complementary management team with strong implementation skills and operational effectiveness

Unimech Aerospace IPO Synopsis –

Unimech Aerospace IPO is set to be open for subscription from 23rd Dec 2024 to 26th Dec 2024, offering combination of fresh issue of 0.32 crore shares aggregating to Rs 250.00 crores and offer for sale of 0.32 crore shares aggregating to Rs 250.00 crores. This NSE,BSE IPO follows a Book Built Issue IPO with tentative listing date fixed as Tuesday, December 31, 2024.

The total issue size of this IPO amounts to Rs. 500.00 Crores. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.

ParticularsDetails
Opening Date23rd Dec 2024
Closing Date26th Dec 2024
Lot Size19 Shares
Face ValueRs 5
IPO SizeRs. 500.00 Cr
Fresh IssueRs. 250.00 Cr
IPO Price RangeRs. 745 – 785
Min. InvestmentRs. 14,915
Offer for Sale (OFS)Rs. 500.00 Cr
Employee Discount
Basis of Allotment27th Dec 2024
Refunds28th Dec 2024
Listing Date31st Dec 2024
DRHP Draft Prospectus:Click Here
RHP Draft Prospectus:Click Here

Unimech Aerospace IPO Market Lot –

Unimech Aerospace IPO minimum market lot is 19 shares with ₹14,915 application amount. The retail investors can apply up to 13 lots with 247 shares or ₹1,93,895 amount.

ApplicationLot SizeSharesAmount
Retail Minimum119₹14,915
Retail Maximum13247₹1,93,895
S-HNI Minimum14266₹2,08,810
S-HNI Maximum
671,273₹9,99,305
B-HNI Minimum681,292₹10,14,220

Unimech Aerospace IPO Book Running Lead Managers –

  • Anand Rathi Securities Limited

  • Equirus Capital Private Limited.

Unimech Aerospace IPO Promoters –

  • Anil Kumar P

  • Ramakrishna Kamojhala

  • Mani P

  • Rajanikanth Balaraman

  • Preetham SV.

Pre-Issue Promoter Shareholding

91.83%

Post-Issue Promoter Shareholding

Unimech Aerospace IPO Registrar to the offer –

The registrar for the Unimech Aerospace IPO is Kfin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

The Objective Of The Issue –

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

  • Financing capital expenditures for growth using the company’s acquisition of machinery and equipment.

  • Financing the company’s operating cash needs.

  • Investment in the material subsidiary for the following purposes:

    • Financing its working capital needs
    • Buying machinery and equipment
    • Repaying or partially repaying some of the loans that its material subsidiary has taken out.
  • General corporate purposes.

Key Performance Indicator –

The market capitalization of Unimech Aerospace and Manufacturing Limited is Rs 3,992.27 Cr.

KPI as of March 31, 2024.

KPIValues
ROE:53.53%
ROCE:54.36%
EBITDA Margin:37.93%
PAT Margin:27.85%
Debt to equity ratio:0.27
Earning Per Share (EPS):₹13.23 (Basic)
Price/Earning P/E Ratio:N/A
Return on Net Worth (RoNW):53.53%
Net Asset Value (NAV):₹24.71

Financial Status –

Unimech Aerospace and Manufacturing Limited’s revenue increased by 125% and profit after tax (PAT) rose by 155% between the financial year ending with March 31, 2024 and March 31, 2023.

Below is the synopsis of the company’s financial data for the financial year that concluded on 31 Mar 2024.

  • The company’s total assets are Rs. 509.27 crore.

  • The company’s total revenue is Rs. 127.58 crore.

  • The company’s PAT is Rs. 38.68 crore.

  • The company’s net worth is Rs. 390.1 crore

Period Ended30 Sep 202431 Mar 202431 Mar 202331 Mar 2022
Total Assets509.27175.6393.3456.88
Revenue from operations
127.58213.7994.9337.08
Profit After Tax38.6858.1322.813.39
Net Worth390.1108.648.8527.66
Reserves and Surplus113.7186.5947.826.62
Total Borrowing74.7128.8622.2617.12
Amount in ₹ Crore

Evaluation of P/E Ratio :

Considering the FY ended 31 Mar 2024 with an EPS of Rs.13.23 from the last year, the resulting P/E ratio is 59.33x.

Considering the weighted EPS of Rs.8.47 for the last three years, the P/E ratio is 92.68x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 222.44x.

In simple words, the P/E ratio of this IPO (59.33x), compared with the industry’s average P/E of 222.44x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

Peers of Unimech Aerospace IPO –

Unimech Aerospace and Manufacturing Limited peer comparison with similar listed entities.

CompanyEPSPE RatioRoNW %NAVIncome
MTAR Technologies Limited18.2493.978.30219.88580.75 Cr.
Azad Engineering Limited11.2145.379.08109.12340.77 Cr.
Paras Defence & Space Technologies Limited8.22146.896.77113.66253.50 Cr.
Dynamatic Technologies Limited179.237.3418.24983.211,429.33 Cr.
Data Patterns (India) Limited32.4589.9813.72236.53519.80 Cr.

Dividend Policy –

The company has not paid a dividend in the last three FYs.

Unimech Aerospace IPO Strengths –

  • Competencies in high-end manufacturing for delivering precision engineering.

  • Multi-billion dollar digital manufacturing company with excellent infrastructure for seamless integration of operations.

  • The mature player with distinctive competencies in a high barrier-to-entry market.

  • Export-driven player: global delivery service model.

  • Powerful vendor ecosystem along with strong contractor management proven execution capability.

  • Strong experience in having complementary management teams having sound implementation skills and operational effectiveness.

Unimech Aerospace IPO Weakness –

  • Reliance on the Aerospace Sector: 98.25% of the revenue earned is from the aerospace sector during a period of six months closing September 30, 2024. Any changes detrimental to the business in this particular sector will reflect unfavorably in the operations and the finances of the company.

  • Middle Customers & Company’s Reliance: More than 90% of the total revenues are dependent on the top five customers of the company. Losing any of these important customers, or even a change in the volume of their purchase, would cause adverse effects on the financial conditions of the company.

  • Long Payment Terms: The business usually understands long gestation periods that include an average time from order to payment of 7 to 28 weeks. Also, this scenario affects operational cash flows and requirements of working capital.

  • Foreign currency exposure: A large portion of sales revenue comes from exports (95.67% to 97.64% in the recent financial period). Thus, an adverse movement in foreign currency rates, particularly between the Indian Rupee and currencies like the dollar and euro, affects profitability.

  • Cash Flow Issues are Negative: The company has had negative cash flows from the investments and financing activities in previous periods. The negative cash flows would adversely affect financial resources and operational stability if they recur in the future.

Unimech Aerospace IPO Status –

Unimech Aerospace IPO allotment status will be available on the Kfin Technologies Limited website. Click on this link to get allotment status.

Disclaimer –

  • Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing. Subscribe only after considering fundamentals of the companies.

Conclusion –

Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.

Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.

For all such latest information on upcoming IPOs, keep visiting our website.

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Disclaimer:This is not an investment advisory. The article above is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed.

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