Unimech Aerospace and Manufacturing Ltd. made a remarkable debut on the Indian stock exchanges on December 31, 2024, with its shares listing at a substantial premium over the initial public offering (IPO) price.
IPO Details and Listing Performance
The company offered its shares in the price band of ₹745 to ₹785 per share.
Upon listing, Unimech Aerospace’s shares opened at ₹1,491 on the Bombay Stock Exchange (BSE), marking an impressive 90% premium over the issue price.
Similarly, on the National Stock Exchange (NSE), the shares debuted at ₹1,460, reflecting an 86% premium.
Market Reaction and Post-Listing Performance
Despite the strong initial performance, the shares experienced some volatility during the trading session. By late afternoon, the stock had declined by approximately 9%, trading around ₹1,350 on the BSE.
Investor Sentiment and Subscription Details
The IPO garnered overwhelming investor interest, being oversubscribed by 175.31 times. The retail investor portion was subscribed 56.74 times, while the non-institutional investors (NII) category was booked 263.78 times. The qualified institutional buyers (QIB) category received 317.63 times subscriptions, and the employees’ portion saw 97.81 times subscriptions.
Company Overview
Unimech Aerospace specializes in the manufacturing and supply of critical parts such as aero tooling, ground support equipment, electro-mechanical sub-assemblies, and other precision-engineered components for the aerospace, defense, energy, and semiconductor industries.
Final Thoughts
The successful listing of Unimech Aerospace underscores the strong demand for quality engineering firms in India. While the initial surge in share price indicates robust investor confidence, the subsequent volatility highlights the dynamic nature of the stock market. Investors are advised to monitor the company’s performance and market conditions closely.
Leave a Reply