Upcoming IPO: Kalpataru Ltd and Unimech Aerospace and Manufacturing Ltd has been issued final observation by the Securities and Exchange Board of India (SEBI), allowing them to raise funds through an initial public offering (IPO). Kalpataru filed its IPO documents with SEBI on August 14, 2024, while Unimech Aerospace and Manufacturing filed draft papers on August 20, 2024.
Kalpataru is a well-known real estate developer in the Mumbai Metropolitan Region (MMR) of Maharashtra, with a presence in all micro-markets throughout the area, according to the Anarock Report. The company is fully integrated into the real estate development process, engaging in key activities such as identifying and acquiring land (or development rights), planning, designing, executing, selling, and marketing their projects.
As of March 31, 2024, Kalpataru has approximately 22.02 million square feet (msf) of ongoing projects. Additionally, their upcoming projects amount to about 19.93 msf of developed area and are expected to be launched in phases during the financial years 2025, 2026, and 2027.
The company’s initial public offering includes a new issue of up to ₹15,900 million. It plans to use the net proceeds primarily to repay or pre-pay, either in full or in part, certain borrowings incurred by the company and its subsidiaries, as well as for general corporate purposes.
ICICI Securities Ltd, JM Financial Ltd, and Nomura Financial Advisory and Securities (India) Private Ltd are serving as the book running lead managers for this offering.
Founded in 2016, Unimech Aerospace and Manufacturing specializes in “build to print” and “build to specifications” services. This includes machining, fabrication, assembly, testing, and the creation of new products based on the specific requirements of its clients.
The company is a leading 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, maintenance, repair and overhaul (MRO), and line maintenance activities, as noted in an F&S Report.
The offer for sale includes equity shares being sold by various individuals, with Ramakrishna Kamojhala, Mani P, and Rajanikanth Balaraman each offering up to ₹45 crore, Preetham S V offering up to ₹30 crore, and Rasmi Anil Kumar offering up to ₹85 crore.
The proceeds from the fresh issue, totaling ₹32.59 crore, will be allocated towards capital expenditure aimed at expansion through the purchase of machinery and equipment. Additionally, ₹25.28 crore will be used to meet the working capital requirements of the company. The investment in its material subsidiary is planned to be ₹43.94 crore for capital expenditure related to machinery and equipment, along with ₹44.71 crore for working capital needs. Furthermore, ₹40 crore will be allocated for the repayment or prepayment of certain borrowings, as well as for general corporate purposes.
Anand Rathi Advisors Ltd and Equirus Capital Private Ltd are serving as the book-running lead managers for this issue, while KFin Technologies Ltd is acting as the registrar to the offer.
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