Unimech Aerospace and manufacturing stock soars 75% on market debut, achieves Rs 7,000-crore market cap
image for illustrative purpose
Unimech Aerospace and Manufacturing made a remarkable debut on the stock market, with its shares surging over 75 percent on December 31, 2024. This impressive performance marked the final debut from the mainboard segment for the year.
The stock opened strongly, jumping 86 percent to Rs 1,460 on the National Stock Exchange (NSE). It reached an intraday high of Rs 1,485 before experiencing some profit-taking that pulled it down to Rs 1,327.75, forming a Morning Star candlestick pattern on the 15-minute charts, indicating a bullish reversal. The stock quickly recovered, closing at Rs 1,376.25, up 75.32 percent from its issue price of Rs 785, with a trading volume of 84.2 lakh shares.
On the Bombay Stock Exchange (BSE), the stock also performed well, rising 74.93 percent to close at Rs 1,373.20 with a volume of 6.97 lakh shares. The company’s market capitalization stood at Rs 6,983.67 crore at the end of the day.
Unimech Aerospace, a Bangalore-based engineering solutions provider, specializes in manufacturing and supplying aero tooling, ground support equipment, electro-mechanical sub-assemblies, and other precision-engineered components for the aerospace, defense, energy, and semiconductor industries. The company caters to top global airframe and aero-engine OEMs and their approved licensees.
The company raised Rs 500 crore through its IPO, which included a fresh issue and an offer-for-sale of shares worth Rs 250 crore each. The IPO was well-received, with the offer being subscribed 175.31 times during the subscription period from December 23-26.
The proceeds from the fresh issue will be used for expansion through the purchase of machinery and equipment, working capital requirements, debt repayment, and general corporate purposes.
