Unimech Aerospace Prepares for Rs 500-Crore IPO

Unimech Aerospace and Manufacturing Ltd, based in Bengaluru, gears up for a Rs 500-crore IPO. The offering includes a fresh issue of shares worth Rs 250 crore and an offer for sale by promoters. Funds will aid expansion, machinery purchase, working capital, debt payment, and general corporate purposes.

Unimech Aerospace and Manufacturing Ltd, a Bengaluru-based high precision engineering solutions company, has filed draft papers with capital markets regulator Sebi to float a Rs 500-crore initial public offering (IPO).

The IPO comprises a fresh issue of equity shares worth Rs 250 crore and an offer of sale (OFS) of up to Rs 250 crore by the promoter and the promoter group, according to the draft red herring prospectus (DRHP). The offer also includes a reservation for subscription by eligible employees.

Funds raised from the fresh issue will be utilized for expansion through the purchase of machinery and equipment, funding working capital requirements, investment in its material subsidiary, payment of debt, and general corporate purposes. The company secured Rs 250 crore through private placement financing from investors like Steadview Capital Mauritius Ltd, ValueQuest, and Evolvence.

(With inputs from agencies.)