Bengaluru-based Unimech Aerospace and Manufacturing Limited, a global leader in high-precision engineering solutions for aerospace, defense, energy, and semiconductor industries, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) with the aim of raising ₹500 crore through an initial public offering (IPO).
Unimech Aerospace and Manufacturing IPO, priced at ₹5 per equity share, consists of a fresh issue of up to ₹250 crore and an offer for sale of up to ₹250 crore by Promoter and Promoter Group Selling Shareholders. Additionally, the offer includes a reserved portion for eligible employee subscriptions.
The offer for sale includes the following equity share sales: up to ₹45 crore by Ramakrishna Kamojhala, up to ₹45 crore by Mani P, up to ₹45 crore by Rajanikanth Balaraman, up to ₹30 crore by Preetham S V, and up to ₹85 crore by Rasmi Anil Kumar.
The proceeds from the new issue will be allocated as follows: ₹32.5 crore for capital expenditure on machinery and equipment to support the Company's expansion; ₹25.2 crore for working capital needs; ₹43.9 crore for capital expenditure on machinery and equipment; ₹44.7 crore for working capital requirements; ₹40 crore for the repayment or prepayment of certain borrowings, and general corporate purposes.
Unimech Aerospace has recently secured ₹250 crore from investors such as Steadview Capital Mauritius Ltd, ValueQuest, and Evolvence through private placement financing.
The offer is being conducted via a book-building process, with a maximum of 50% of the net offer allocated to qualified institutional buyers on a proportionate basis. At least 15% of the net offer will be available for non-institutional bidders, and no less than 35% will be allocated to retail individual investors.
Founded in 2016, Unimech Aerospace and Manufacturing Limited specializes in "build to print" and "build to specifications" services, which include machining, fabrication, assembly, testing, and the development of new products based on client specifications.
Unimech Aerospace and Manufacturing Ltd is a prominent manufacturer of complex tooling, mechanical assemblies, electro-mechanical turnkey systems, and precision components. These products are widely used in aeroengine and airframe tooling for production, MRO (Maintenance, Repair, and Overhaul), and line maintenance activities, as detailed in an F&S Report included in the DRHP.
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.
