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Rs 500-Crore Unimech IPO Becomes a Hotcake with 44x Subscription!
Unimech Aerospace and Manufacturing Ltd shareholders recently have shown interest in the company's initial public offer (IPO) which was closed on the 26th of December, 2024. The ₹500 crore IPO, which will have a price band of ₹745 – ₹785 per share, consists of a fundraiser through a fresh issue of equity of ₹250 crore and an Offering for Sale (OFS) of ₹250 crore.
Robust Subscription Rates Between Investor Categories
By the last day, the IPO had seen 44.87 times subscription to the issue which received bids for 21.10 crore shares against the 47.04 lakh shares offered. The subscription rate among Non-Institutional Investors (NIIs) was held at 111.28 times, Retail Individual Investors (RIIs) stood at 31.69 times, and that of Qualified Institutional Buyers (QIBs) at 17.95 times.
Listing Prospects Indicated by Grey Market Premium.
Unimech Aerospace shares are fetching about ₹630 over the upper IPO price in the grey market, implying a listing price of around ₹1,415 per share. The company’s market debut is supported by a premium of over 80%, a sign of strong investor confidence.
Key Dates for Investors
The shares are expected to be finally allotted on 27 December 2024. Successful allottees can expect the credit of shares into their demat accounts by December 30, 2024. The company will list its shares on the BSE and NSE on December 31, 2024.
Market Position and Company Profile
Unimech Aerospace specialises in high-precision engineering solutions, catering to industries like aerospace, defence and energy. Due to its key position of expertise in complex manufacturing solutions, these industries helped give rise to heightened investor interest during the IPO.
Investor Considerations
Despite the significant grey market premium as a sign of positivity, investors should be careful. Grey market premiums are premiums which are un-sanctioned and therefore they can easily fluctuate. One should invest based on a sound analysis of the company and its prospects in a particular industry.
Conclusion
The enthusiastic response to Unitmch Aerospace's IPO is a clear indication that the market has confidence in the company. Before its listing date, investors and market watchers will focus on the stock performance and it will serve as a benchmark for other high-precision engineering IPOs.