Unimech Aerospace and Manufacturing Ltd has announced its intention to propose significant changes to the utilization objectives of the funds raised through its Initial Public Offering (IPO). The company will now seek the approval of its shareholders for these modifications, a strategic move aimed at aligning its financial resources with its evolving business dynamics and long-term growth aspirations.
The company has stated its intent to change the terms of the issue objectives as outlined in its prospectus.
This proposed alteration is driven by several factors, including evolving business dynamics, vendor variations, long-term strategic objectives, and the pursuit of growth through inorganic routes, while On top of that, Unimech Aerospace is considering mergers and acquisitions to enhance market reach, achieve industry diversification, and ultimately improve shareholder value and returns. As of September 30, 2025, the unutilized amount from the IPO stood at Rs 97. 994 crore. Out of this, the company plans to allocate Rs 61. 287 crore towards mergers and acquisitions, greenfield projects, and joint ventures, reflecting a proactive approach to expansion and diversification.
Approvals Under Companies Act, 2013
In addition to modifying the IPO fund utilization, Unimech Aerospace will also seek shareholder approval for other critical financial activities. This includes obtaining consent, in accordance with Section 186 of the Companies Act, 2013, to give loans, provide guarantees, and/or offer security to any body corporate or individual(s), and to make investments in any body corporate, while Also, the company will seek approval to consider and sanction any loan, guarantee, or security under Section 185 of the Companies Act, 2013. These approvals are crucial to provide the company with the necessary flexibility to execute its strategic initiatives effectively and compliantly.
Shareholder Voting Process
To facilitate the decision-making process for these important proposals, a postal ballot notice is being dispatched to shareholders who have registered their email addresses with the company or the depository, while shareholders whose names appear in the register of members or the list of beneficial owners received from the depository as of Friday, November 14, 2025, will receive the notice exclusively through electronic mode. This ensures that all eligible shareholders are informed and have the opportunity to participate in the voting process.
Voting Period and Approval Threshold
The voting period for these resolutions will commence on Tuesday, November 18, 2025, at 9:00 AM IST and conclude on Wednesday, December 17, 2025, at 5:00 PM IST, while shareholders are required to cast their votes within this timeframe. The company has stipulated a stringent approval criterion: any change, deviation, or alteration in the issue objectives will only be implemented if the proposal is approved by more than 90 percent of the shareholders present and voting. This high threshold underscores the company's commitment to ensuring broad shareholder consensus on significant financial and strategic decisions.
Long-Term Strategy and Shareholder Value
Unimech Aerospace firmly believes that these strategic changes will lead to improved consolidated earnings and cash flows in the long term. The company's objective is to ensure the optimal utilization of IPO proceeds and enhance overall shareholder value. The Board of Directors has recommended the proposals outlined in item numbers 2 and. 3 for approval as special resolutions, highlighting the importance and strategic nature of these changes. The company is ISO 9001:2015 and AS9100 Rev D certified, reflecting its commitment to quality and operational excellence. Mr. Akash Shetty serves as the Company Secretary and Compliance Officer, and the company's official website is www. unimechaerospace, while com.
