Shares of Unimech Aerospace and Manufacturing made a solid Dalal Street debut on Tuesday as the defence player was listed at Rs 1,491 on BSE, a premium of 89.94 per cent over its issue price of Rs 785. Similarly, the stock kicked off its maiden trading session with a premium 85.99 per cent over the issue price at Rs 1,460 on NSE.
Listing on Unimech Aerospace has been better than the expectations. Ahead of its debut, the grey market premium (GMP) of Unimech Aerospace and Manufacturing saw a mild correction due to volatile market conditions. The company was commanding a GMP of Rs 625 in the unofficial market before debut, suggesting a listing gains of around 80 per cent for the investors.
The IPO of Unimech Aerospace and Manufacturing was open for bidding between December 23-December 26. It had offered its shares in the price band of Rs 745-785 per share with a lot size of 19 shares. The Bengaluru-based company raised a total of Rs 500 crore via IPO, which included a fresh share sale of Rs 250 crore and offer-for-sale (OFS) of up to Rs 250 crore.
The issue was overall booked a stellar 175.31 times. The allocation for the qualified institutional bidders (QIBs) was subscribed a solid 317.63 times The portion for non-institutional investors (NIIs) was subscribed 263.78 times. Allocations for retail investors and employees were booked 56.87 times and 97.81 times, respectively during the three-day bidding process.
Incorporated in 2016, Unitech Aerospace and Manufacturing is engaged in the manufacturing of complex tools like mechanical assemblies, electro-mechanical systems, and components for aeroengine and airframe production, specializing in the manufacturing of complex products.
Brokerage firms had a positive view on the issue, suggesting to subscribe to it. Anand Rathi Securities and Equirus Capital are the book running lead managers of the Unimech Aerospace and Manufacturing IPO, while Kfin Technologies is the registrar for the issue.