Unimech Aerospace Set to Launch ₹500 Crore IPO: Bengaluru’s High-Precision Leader Files with SEBI

Unimech Aerospace and Manufacturing Limited, a company based in Bengaluru that provides high-precision engineering solutions for industries like aerospace, defense, energy, and semiconductors, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company plans to raise ₹500 crore through an initial public offering (IPO).

The IPO is priced at ₹5 per equity share and includes a fresh issue of up to ₹250 crore and an offer for sale of up to ₹250 crore by the company’s Promoters and Promoter Group Selling Shareholders. There is also a portion of the offer reserved for eligible employees to subscribe.

The offer for sale involves equity shares from several shareholders, including ₹45 crore each from Ramakrishna Kamojhala, Mani P, and Rajanikanth Balaraman, ₹30 crore from Preetham S V, and ₹85 crore from Rasmi Anil Kumar.

The funds from the fresh issue will be used for various purposes, including ₹32.5 crore for capital expenditure on machinery and equipment to support the company’s growth, ₹25.2 crore for working capital needs, ₹43.9 crore for additional capital expenditure on machinery and equipment, ₹44.7 crore for more working capital, ₹40 crore for repaying or prepaying certain borrowings, and for general corporate purposes.

Recently, Unimech Aerospace raised ₹250 crore from investors like Steadview Capital Mauritius Ltd, ValueQuest, and Evolvence through private placement financing.

The IPO will be conducted through a book-building process, with up to 50% of the net offer being allocated to qualified institutional buyers, at least 15% to non-institutional bidders, and at least 35% to retail individual investors.

Founded in 2016, Unimech Aerospace and Manufacturing Limited specializes in creating products based on customer specifications, including complex tooling, mechanical assemblies, electro-mechanical systems, and precision components. These products are commonly used in the production, maintenance, repair, and overhaul (MRO) of aeroengines and airframes.

Anand Rathi Advisors Limited and Equirus Capital Private Limited are the book-running lead managers for the issue, while KFin Technologies Limited is the registrar.