IPO-bound Unimech Aerospace raises Rs 250 crore led by Steadview Capital Mauritius, others

Bengaluru-based Unimech Aerospace has raised Rs 250 crore (or approximately $30 million) in a private placement round.

The investment was secured from Steadview Capital Mauritius Limited, ValueQuest Scale Fund, and Evolvence India Fund IV Ltd.

This is Unimech Aerospace's first funding round since its establishment in 2016. The funds were raised at a post-money valuation of Rs 3,250 crore ($390 million).

Focusing on both organic and inorganic growth

The company will use the raised funds to pursue both organic and inorganic growth, as well as to refine its product offerings. 

"This investment will enable us to pursue both organic and inorganic growth, enhancing our Build to Print and Build to Spec solutions," said Anil Puthan, Chairman and Managing Director of Unimech Aerospace.

The company specializes in high-precision tooling for aero-engines and airframes, complex high-precision components, assemblies, and electro-mechanical turnkey systems for the aerospace, defense, energy, and semiconductor industries.

It has a significant presence in the USA, Europe, and the United Kingdom.

Unimech's financial performance

For the fiscal year ended in March 2023 (FY23), Unimech’s revenue increased to Rs 28 crore from Rs 16 crore in the previous fiscal year. It also maintained profitability, reporting a net profit of Rs 2.81 crore in FY23, up from Rs 1.69 crore in FY22.

Unimech Aerospace claims to have grown to over Rs 200 crore ($24 million) in revenue by FY24.

IPO plans

Unimech Aerospace is preparing to file a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its upcoming Initial Public Offering (IPO).

This will make Unimech the first venture-funded aerospace manufacturing company in India to go public.

"The funds raised from this investment will bolster the company's expansion efforts and strategic objectives," said Anil Puthan.