Uniparts India Ltd IPO GMP Today: The initial public offering (IPO) of engineering systems and solutions provider Uniparts India opened for subscription on Wednesday, November 30, 2022. It opened for public subscription at 10 am and was subscribed around 25 per cent by 1:48 pm on the first day of bidding.
It received total bids for 25,47,950 shares across both the stock exchanges against 1,01,37,360 shares on offer, data from National Stock Exchange (NSE) showed.
The Rs 835.6 crore Uniparts India IPO will be available for subscription till Friday, December 2, 2022, and the price band of the company has been fixed at Rs 548-577 per share.
The IPO is entirely an offer-for-sale (OFS) of 14,481,942 equity shares by promoter group entities and existing investors. The company will not receive any proceeds from the issue.
Those selling shares in the OFS are promoter groups – The Karan Soni 2018 CG-NG Nevada Trust, The Meher Soni 2018 CG-NG Nevada Trust and Pamela Soni, and investors – Ashoka Investment Holdings and Ambadevi Mauritius Holding.
Half of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and the remaining 35 per cent for retail investors.
Uniparts India is a global manufacturer of engineered systems and solutions and is one of the leading suppliers of systems and components for the off-highway market in the agriculture and construction, forestry and mining (CFM) and aftermarket sectors on account of its presence across over 25 countries.
“We are a concept-to-supply player for precision products for off-highway vehicles (“OHVs”) with presence across the value chain. Our product portfolio includes core product verticals of 3-point linkage systems (“3PL”) and precision machined parts (“PMP”) as well as adjacent product verticals of power take off (“PTO”), fabrications and hydraulic cylinders or components thereof,” the company said in its red herring prospectus (RHP).
Investors who wish to subscribe to Uniparts India IPO can bid in a lot of 25 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,425 to get a single lot of Uniparts India. The shares will be listed on both BSE and NSE.
The applicants also must note that the cut-off time for UPI mandate acceptance is Friday, December 2, 2022, upto 5:00 pm, the last day of IPO bidding. Further bids with confirmed status of mandate amount blocked (RC100) shall be considered as valid applications and hence, investors are advised to submit their UPI applications in IPO well in advance to avoid any last minute technical/systemic constraints that may hamper their ability to participate in IPOs by successfully accepting the mandate.
Axis Capital, DAM Capital Advisors and JM Financial are the book-running lead managers to the offer while Link Intime India is the registrar of the issue.
Before heading into the IPO, Uniparts India on Tuesday raised over Rs 250.68 crore (Rs 2,50,68,23,814) from 21 anchor investors in lieu of 43,44,582 equity shares at Rs 577 each, data from the stock exchanges showed.
The anchor investors include Nomura, HDFC Mutual Fund (MF), Aditya Birla Sun Life MF, Nippon India MF, Morgan Stanley, BNP Paribas, Invesco MF, Mahindra MF, Carnelian Capital, Bajaj Allianz Life Insurance Company and Aditya Birla Sun Life Insurance Company among others.
The research teams at Geojit Financial Services, Motilal Oswal Financial Services, Swastika Investmart and Reliance Securities in their respective IPO notes have given a “Subscribe” rating to the offer.
Geojit Research in its IPO note said, “At the upper price band of Rs 577, UIL is available at a P/E of 15.6x (on FY22 EPS), which appears reasonably priced compared to peers. Considering its strong earnings growth, improving margins and positive industry outlook, we assign a “Subscribe” rating on a short to medium term basis.”
MOFSL in its research report noted, “UIL with its global leading positioning in off-highway market is well placed to capture the growing industry opportunity in tractor and construction equipment space. Moreover given its efforts to continuously move up the value chain has led to strong earnings delivery and expand addressable market as well as customer base. It further aims to increase its market share and diversify its portfolio both product wise and geographically. The IPO is priced at 15.6x FY22 P/E which is reasonable compared to its robust financials. Hence one can Subscribe to the IPO, given the huge capex plans of government in India and US.”
The share allotment is likely to take place on Wednesday, December 7, 2022, and the shares are expected to be listed on Monday, December 12, 2022, according to the timeline given in the RHP.