Unimech Aerospace and Manufacturing fixes price band for its ₹500 crore IPO; Details here – CNBC TV18

Bengaluru-based space startup Unimech Aerospace and Manufacturing Ltd. has announced the price band for its upcoming initial public offering (IPO). The price band has been fixed between ₹745 to ₹785 per share.

The IPO, set to open for subscription on Monday, December 23, will remain available for bidding till Thursday, December 26.

The company aims to raise ₹500 crore through its initial share sale. The Unimech Aerospace and Manufacturing IPO consists of a fresh issue of 32 lakh shares aggregating to ₹250 crore and an offer for sale of 32 lakh shares totalling ₹250 crore. At the upper end of the price band, the total issue size is ₹582 crore.

Retail investors must buy at least 19 shares in one lot to participate in the bidding. This takes the minimum investment by the retail category to ₹14,915 for each lot. The minimum lot size investment for small NIIs is 14 lots and big NIIs is 68 lots.
Of the total offering, 50% of the shares are allocated to Qualified Institutional Buyers (QIBs), 35% to retail investors, and the remaining 15% to Non-Institutional Investors (NIIs).

Kfin Technologies Limited has been appointed as the registrar for the Unimech Aerospace and Manufacturing IPO. Anand Rathi Securities Limited and Equirus Capital Private Limited are its book-running lead managers.

Share allotment of the issue will be done on Friday, December 27. This will be followed by the credit of shares to the Demat accounts of successful bidders on Monday, December 30. Non-allottees will get their refunds on the same day.

Shares of Unimech Aerospace and Manufacturing are set to list on the BSE and NSE on December Tuesday, December 31.

The company will use the proceeds from the IPO to expand its operations by buying machines, as well as fund its working capital requirements. It will also invest in its material subsidiary from the money raised in the IPO. The remainder of the funds will go towards general corporate purposes.

Unimech Aerospace and Manufacturing Limited manufactures complex tools such as mechanical assemblies, electro-mechanical systems, and components for aero engine and airframe production.