Unimech Aerospace and Manufacturing shares drop over 9% post listing

Unimech Aerospace and Manufacturing shares drop over 9% post listing

Unimech Aerospace and Manufacturing shares experienced a 9.4% decline to Rs 1,350.4 on the BSE following their impressive debut on the exchanges on Tuesday. The stock initially entered the market at Rs 1,491 on the BSE, boasting a premium of Rs 706 or 90% over the IPO price of Rs 785. On the NSE, the shares made their debut at Rs 1,460.

The Rs 500-crore IPO of Unimech Aerospace, a provider of high-precision engineering solutions, included a fresh issue of Rs 250 crore and an offer-for-sale of Rs 250 crore. This IPO was open for subscription from December 23-26. The IPO garnered significant interest, with an overall subscription of 175.31 times, receiving bids for 82.46 crore equity shares against 47.04 lakh shares on offer.

Retail investors subscribed 56.74 times, non-institutional investors subscribed 263.78 times, and qualified institutional buyers category was oversubscribed at 317.63 times. Analysts recommended subscribing to the IPO, emphasizing the company’s strong position in the aerospace sector due to its focus on manufacturing critical components for global original equipment manufacturers (OEMs).

Unimech Aerospace’s IPO offers an attractive opportunity for investors in the engineering and aerospace sectors, given its competitive valuation metrics and growth prospects, according to Canara Bank Securities, which assigned a subscribe rating to the stock.

Unimech Aerospace and Manufacturing specializes in providing engineering solutions, manufacturing critical parts such as aero tooling, ground support equipment, electro-mechanical sub-assemblies, and other precision-engineered components for the aerospace, defense, energy, and semiconductor industries.

Anand Rathi Securities and Equirus Capital served as the book running lead managers of the Unimech Aerospace IPO, with Kfin Technologies acting as the IPO registrar.

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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.