IPO INFO

Unimech Aerospace IPO Activity Date

Basis of Allotment Date* 27th Dec 2024

Refunds Initiation* 30th Dec 2024

Credit of Shares to Demat* 30th Dec 2024

IPO Listing Date* 31st Dec 2024

🛩️ Unimech Aerospace and Manufacturing IPO

🗓️ Date : 23 - 26 Dec ,2024

🏷️ Price Band : ₹745- ₹785

📦 Market Lot : 19 Shares

💰 Appl Amt : ₹14,915

📏 Size : ₹582 Cr Approx

👦 Retail Portion :35%

📃 Retail Form : 1,16,980

📄 HNI Small Form : 1,194

📄 HNI Big Form : 2,387

🏷️ Face Value : ₹5

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Business Model

The company is primarily an engineering solutions company specializing in the manufacturing and supply of critical parts. It operates a "high-mix, low-volume" production framework, where they manufacture a diverse array of products (high-mix) in comparatively small quantities for each type (low-volume). The company operates intwobusiness segments. 1. Aero-Tooling: This is the company's primary business segment. It involves the production of aero engine tooling and airframe tooling. The company's capabilities include both "build to print" and "build to specifications", where it manufactures products based on client designs and assists clients in designing products based on its specifications. 2. Precision Engineered Components: This segment includes the manufacturing of precision engineered components for various industries including aerospace, defense, energy, and semiconductor. Between FY22 and the six-month period ended September 30, 2024, the company produced 2,999 SKUs in the tooling and precision complex sub-assemblies category and 760 SKUs in the precision machined parts category, serving over 26 customers across 7 countries.

Risks

• A significant portion of the company’s total revenue from operations is attributable to the aerospace sector wherein they manufacture products pertaining to aero engine tooling and airframe tooling.

• The Company’s business works on a longer gestation period wherein, there is considerable time gap of 7 to 28 weeks between the receipt of order and the payment, thereby, affecting their working capital requirements.

• The Company is dependent on exports and the performance of geographies where they supply their products.

• Business and profitability is substantially dependent on the availability and cost of raw materials, and any disruption to the timely and adequate supply of raw materials, or volatility in the prices of raw materials may adversely impact business,

• Track record of strong financial performance.

• The company is dependent on contract labour and any disruption to the supply of such labour for manufacturing facilities or inability to control the composition and cost of contract labour could adversely affect operations.

Unimech Aerospace IPO Objective

The Company intends to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

👉Funding of capital expenditure for expansion through purchase of machineries and equipment by the Company

👉Funding working capital requirements of the Company

👉Investment in the Material Subsidiary for: (i) purchase of machineries and equipment; (ii) funding its working capital requirements; and (iii) repayment / prepayment, in full or part, of certain borrowings availed by their Material Subsidiary

👉General corporate purposes.

Strengths

• 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 subcontractor management with proven execution capabilities.

• Experienced and complementary management team with strong implementation skills and operational effectiveness.

Expansion into High-Growth Sectors:

 As Unimech looks to further expand its product offerings, its focus is on introducing new products that align with the needs of high-growth sectors.  For instance, the company plans to enhance its offerings in medical devices and robotics, targeting clients within these sectors who require advanced, high-precision equipment for their operations.  This expansion aligns with Unimech's goal of broadening its presence in these high-value markets and positioning itself to meet the evolving demands of these industries.

Enhancing global footprint in strategic regions:

 Unimech is a key link in the global supply chain for global aerospace, defence, semiconductor, and energy OEMs and their licensees for the supply of critical parts like aero tooling, ground support equipment, electro-mechanical sub-assemblies, and other precision-engineered components.  The United States holds substantial importance as a market for aerospace and precision components and assemblies, with Unimech primarily serving clients within the United States. Unimech's current operations face challenges related to high lead times due to geographical distance and lack of direct access to the US market.  To overcome these obstacles and better serve customers, Unimech is exploring two primary approaches: establishing tooling inventory and warehousing in the USA and setting up a manufacturing presence either through acquisition or organic growth.  Europe stands as the second-largest market for aerospace products, notably in the aero tooling sector. Major players in aero tooling and maintenance, repair, and overhaul (MRO) sectors maintain strong footholds in the European market.  Unimech's approach emphasizes product innovation, process refinement, and customized engineering solutions to meet the diverse requirements of its clientele across various geographies.  By expanding its presence in international markets, Unimech aims to cater to the growing demand of existing customers, offer distinctive products and value-added services, and onboard new customers from key markets.

Unitech Aerospace and Manufacturing Limited IPO company Research Report


Unitech Aerospace and Manufacturing Limited Incorporated 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.

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🗓️ Date : 20 - 24 Dec ,2024

🏷️ Price Band : ₹610- ₹643

📦 Market Lot : 23 Shares

💰 Appl Amt : ₹14,789

📏 Size : ₹1,600 Cr Approx

👦 Retail Portion :10%

📃 Retail Form : 1,08,121

📄 HNI Small Form :3,861

📄 HNI Big Form : 7,723

🏷️ Face Value : ₹1

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