Unimech Aerospace And Manufacturing Files Draft Papers To Raise Rs 500 Crore Via IPO
The proposed public offering consists of a fresh issue of Rs 250 crore and an offer-for-sale component of Rs 250 crore.
Unimech Aerospace And Manufacturing Ltd. filed its preliminary papers with the Securities and Exchange Board of India on Tuesday to raise Rs 500 crore through an initial public offering.
The proposed public offering consists of a fresh issue of Rs 250 crore and an offer-for-sale component of Rs 250 crore, according to the draft red herring prospectus. The offer also includes a reservation for a subscription by eligible employees.
The offer for sale consists of sale of equity shares up to Rs 45 crore by Ramakrishna Kamojhala, up to Rs 45 crore by Mani P, up to Rs 45 crore by Rajanikanth Balaraman and up to Rs 30 crore by Preetham S V. Rasmi Anil Kumar the promoter group will offload stock worth Rs 85 crore.
Anand Rathi Advisors Limited, and Equirus Capital Private Limited are the book-running lead managers to the issue and KFin Technologies Limited is the registrar to the offer.
The equity shares are proposed to be listed on both Bombay Stock Exchange and National Stock Exchange.
Net proceeds from the issue amounting to Rs 32.5 crore will be used for funding of capital expenditure for expansion through purchase of machineries and equipment. A total of Rs 25.2 crore will go towards working capital requirements of the company and for investments in its material subsidiary.
While Rs 43.9 crore will go towards capital expenditure for expansion through purchase of machineries and equipment, Rs 44.7 crore will go towards working capital. The company will use Rs 40 crore for repayment or prepayment of borrowing and towards general corporate purposes.
Unimech Aerospace has recently raised Rs 250 crore from investors including Steadview Capital Mauritius Ltd, ValueQuest and Evolvence in private placement financing.
The Bengaluru-based firm is a leading manufacturer of complex tooling, mechanical assemblies, electro-mechanical turnkey systems, and precision components. These components are used in aeroengine and airframe tooling for production, maintenance, repair and overhaul, and line maintenance activities.
The company offers a diverse range of products and manufactures relatively small quantities of each, tailored to specific customer requirements.
