Bengaluru-based Unimech Aerospace and Manufacturing Limited, a global leader in high-precision engineering solutions for the aerospace, defence, 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 funds ₹500 crore through an initial public offering (IPO).
Unimech Aerospace and Manufacturing initial public offering, priced at ₹5 per common share, consists of a new issue of up to ₹250 crores and an offer for sale of up to ₹250 crore from the promoter and selling shareholders of the promoter group. In addition, the offer includes a portion reserved for subscriptions by eligible employees.
The offer for sale includes the following sales of capital shares: up to ₹45 crores for Ramakrishna Kamojhala, up to ₹45 crores for Mani P, up to ₹45 crores for Rajanikanth Balaraman, up to ₹30 crores by Preetham SV and up to ₹85 crores for Rasmi Anil Kumar.
About the company
The proceeds from the new issue will be allocated as follows: ₹Rs 32.5 crore for capital expenditure on machinery and equipment to support the expansion of the business; ₹25.2 crore for working capital requirements; ₹Rs 43.9 crore for capital expenditure on machinery and equipment; ₹44.7 crore for working capital requirements; ₹40 crores for repayment or prepayment of certain loans and general corporate purposes.
Unimech Aerospace has recently obtained ₹250 crore from investors including Steadview Capital Mauritius Ltd, ValueQuest and Evolvence through private placement funding.
He offer The tender will be conducted through a portfolio construction process, where a maximum of 50% of the net offer will be allocated to qualified institutional buyers on a proportional basis. At least 15% of the net offer will be available to non-institutional bidders and no less than 35% will be allocated to individual retail investors.
Established in 2016, Unimech Aerospace and Manufacturing Limited specializes in “build-to-print” and “build-to-spec” services, including machining, manufacturing, assembly, testing and new product development based on customer specifications.
Unimech Aerospace and Manufacturing Ltd is a leading manufacturer of complex tooling, mechanical assemblies, turnkey electromechanical systems and precision components. These products are widely used in aero-engine and airframe tooling for production, MRO (maintenance, repair and overhaul) and line maintenance activities, as detailed in an F&S report included in the RDHP.
Anand Rathi Advisors Limited and Equirus Capital Private Limited are the lead book-running managers for the issue and KFin Technologies Limited is the registrar for the offer.
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