This IPO created a stir in the gray market on the very first day!


Unimech Aerospace and Manufacturing Ltd. The IPO has opened for bids i.e. investment on Monday i.e. 23rd December. Let us know whether you should invest in this IPO or not? Also let us know what is the situation in the gray market?

The company is selling its shares in the range of ₹745-785 per share for the ₹500 crore IPO, where investors can bid for a minimum of 19 equity shares in a lot and in multiples thereof.

To invest or not?

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The brokerage says Unimech Aerospace’s advanced manufacturing capabilities, digital integration and expertise in high barrier sectors position it as a key player in precision engineering. The company’s strong financial performance is driven by operational efficiency and global OEM partnerships.

Although its valuation multiple EV/EBITDA of 51x and P/E (price-to-earnings) of 69x are more reasonable than its peers, reflecting its strong fundamentals and growth prospects. Thus, the brokerage has recommended subscribing to this issue.

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The company plans to expand its design and manufacturing capabilities through acquisitions (recently acquiring 30% stake in Dheya Engg), the brokerage said in its note. It is exploring organic and inorganic opportunities in the US, which will enhance its capacity and ability to serve customers in the core market.

IPO GMP आज

In the gray market, shares of Unimech Aerospace are currently trading at ₹480, representing a 61.15% premium over the issue price. Accordingly, bumper listing is being expected.

The gray market acts as an informal platform. This unregulated market allows investors to speculate on pricing.

business model

Established in 2016, Unimech Aerospace & Manufacturing Ltd. manufactures complex equipment such as mechanical assemblies, electro-mechanical systems, and components for aeroengine and airframe production. The company provides an engineering solutions service that specializes in the manufacturing of complex products, offering “built to print” and “built to specification”.

Disclaimer: This information is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investment decisions.