New Delhi. Bengaluru-based Unimech Aerospace and Manufacturing Limited, a global high precision engineering solutions company specialising in complex manufacturing solutions for the aerospace, defence, energy, and semiconductor industries, has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise Rs 500 crore through an initial public offering (IPO).
The IPO with a face value of Rs 5 per equity share, is a mix of fresh issue of up to Rs 250 crore and an offer of sale up to Rs 250 crore by Promoter and Promoter Group Selling Shareholders. The offer also includes a reservation for a subscription by eligible employees.
The offer for sale consists of sale of equity shares up to Rs 45 crore by Ramakrishna Kamojhala, up to Rs 45 crore by Mani P, up to Rs 45 crore by Rajanikanth Balaraman, up to Rs 30 crore by Preetham S V, up to Rs 85 crore by Rasmi Anil Kumar.
The proceeds from the fresh issue to the extent of Rs 32.5 crore will be used for funding of capital expenditure for expansion through purchase of machineries and equipment by the Company; Rs 25.2 crore for funding working capital requirements of the Company; For Investment in its material subsidiary; Rs 43.9 crore for funding of capital expenditure for expansion through purchase of machineries and equipment; Rs 44.7 crore for funding its working capital requirements; and Rs 40 crore for repayment / prepayment, in full or part, of certain borrowings; and general corporate purposes.
Unimech Aerospace has recently raised Rs 250 crore from investors including Steadview Capital Mauritius Ltd, ValueQuest and Evolvence in private placement financing.
The offer is being made through the book-building process, wherein not more than 50% of the net offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the net offer shall be available for allocation to non-institutional bidders, and not less than 35% of the net offer shall be available for allocation to retail individual portion.
Incorporated in the year 2016, Unimech Aerospace and Manufacturing Limited offers “build to print” and “build to specifications” involving machining, fabrication, assembly, testing and creating new products basis the specific requirements of its clients.
The company is a leading manufacturer of complex tooling, mechanical assemblies, electro-mechanical turnkey systems, and precision components, which are extensively utilised in aero-engine and airframe tooling for production, MRO (Maintenance, Repair, and Overhaul), and line maintenance activities, according to an F&S Report as mentioned in the DRHP.
Unimech’s product range includes engine lifting and balancing beams, assembly, disassembly and calibration tooling, ground support equipment, airframe assembly platforms, engine transportation stands, mechanical and electro-mechanical turnkey systems, as well as precision components.
The company plays a crucial role in the global supply chain, providing critical parts such as aero tooling, ground support equipment, electro-mechanical sub-assemblies, and other precision-engineered components to global aerospace, defence, semiconductor, and energy OEMs and their licensees (Source: F&S Report in DRHP). Its key clients include some of the world’s top airframe and aero-engine OEMs and their approved licensees.
Unimech’s products are known for their complexity and their “high-mix, low-volume” nature, meaning they are produced in a wide variety but not in large quantities. The company offers a diverse range of products (SKUs) and manufactures relatively small quantities of each, tailored to specific customer requirements.
Between Fiscals 2022 and 2024, Unimech produced 2,356 SKUs in the tooling and precision complex sub-assemblies’ category and 624 SKUs in the precision machined parts category, serving more than 26 customers across 7 countries.
The company’s broad capabilities enable it to serve customers globally, establishing itself as an export-oriented business with clients in the USA, Germany, and the United Kingdom.
As of June 30, 2024, Unimech had an order in-hand of Rs 99.24 crore, with delivery timelines ranging from 4 to 16 weeks.
As of March 31, 2024, Unimech operates two manufacturing facilities, Unit I and Unit II, in Bangalore, covering a total area of over 1,20,000 sq. ft. Unit I, located in Peenya, Bangalore, spans over 30,000 sq. ft., while Unit II, situated in a Special Economic Zone (SEZ) near Bangalore International Airport in Devanahalli, covers an area of over 90,000 sq. ft.
Unimech’s revenue from operations increased by 121.71% to Rs 2,08.77 crore for Fiscal 2024 from Rs 94.17 crore for Fiscal 2023, primarily due to increase in its total annualized capacity and number of purchase orders. Profit after tax increased by 154.83% to Rs 58.13 crore for Fiscal 2024 from Rs 22.81 crore for Fiscal 2023.
The company recorded the highest revenue growth with a CAGR of 139.7% between FY 2022 – 2024, making it the fastest growing company and achieving one of the highest EBITDA and PAT margins amongst the listed peers. For FY24, it recorded the highest ROCE and ROE amongst the listed peers.
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.
