Introduction
The latest company to join the IPO bandwagon is engineering systems and solutions provider Uniparts India Limited. This company has a customer base both, in India and overseas with a presence in about 25 countries.
Uniparts India Limited IPO issue was open from 30th November 2022 to 2nd December 2022. The issue was subscribed 25.32 times and the company’s shares commanded a grey market premium (GMP) of Rs. 60 as of 2nd December’22.
Here are all the important details of Uniparts India Limited IPO, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
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IPO Details
The various details of the Uniparts India Limited IPO are as under.
1. IPO Size
The size of the IPO and different categories of the issue are,
| Category | Details |
| IPO Opening Date | 30th November 2022 |
| IPO Closing Date | 2nd December 2022 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Rs.10 per share |
| IPO Price Band | Rs.548 – Rs.577 per share |
| IPO Size | Rs.835.61 crores (14,481,942 shares) |
| Offer For Sale | Rs.835.61 crores (14,481,942 shares) |
| Fresh Issue | – |
2. IPO Dates
The important dates for the Uniparts India Limited IPO are highlighted below.
| Event | Date |
| Opening date | 30th November 2022 |
| Closing Date | 2nd December 2022 |
| Allotment date | 7th December 2022 |
| Refund Date | 8th December 2022 |
| Share Credit Date | 9th December 2022 |
| Listing Date | 12th December 2022 |
3. IPO Lot Sizes
Investors can subscribe to the shares of Uniparts India Limited IPO in pre-defined lots. The details of the lot sizes for this IPO are mentioned below.
| Category | Details |
| Investment in lots (for retail investors) |
|
| Shares |
|
| Investment amount |
|
4. IPO Reservation
The categories of eligible investors and their share in the IPO are tabled below
| Category of Investor | Reservation Percentage |
| QIB (Qualified Institutional Buyers) | 50% |
| NII (Non-Institutional Bidders) | 15% |
| RII (Retail Individual Investors) | 35% |
Uniparts India Limited IPO Objectives
Uniparts India Limited is a first generation entrepreneur company The IPO is an Offer For Sale with approximately a 10% share being offloaded by the promoters. The key objectives of the IPO are stated below:
- Conduct offer for sale as current equity shareholders of the company partially liquidate their stake.
- Benefit from access to a larger shareholder base through listing on stock exchanges.
Top things to know about Uniparts India Limited IPO
Uniparts India Limited is a leading name in the country as a supplier of systems and components for the off-highway market in the agricultural and construction sector, Forestry and Mining (CFM) along with the aftermarket sectors. The core portfolio of the company includes
- 3-point linkage system (3PL)
- Adjacent product verticals of power take-off (PMP)
- Fabrications and hydraulic cylinders or components.
Here are some of the top facts about Uniparts India Limited:
- It is a huge name in the concept-to-supply player for precision products for off-highway vehicles (OHV) along with its presence in the value chain.
- They have 5 manufacturing units in the country (2 in Ludhiana, 2 in Noida, and 1 in Vishakhapatnam.
- Apart from its Indian manufacturing units, the company also has manufacturing, warehousing, and distribution units at Eldridge Iowa. This unit was acquired as part of an acquisition in 2005 of Olsen Engineering LLC which is also known as Uniparts Olsen Inc.
- The company also has a distribution facility in Augusta, Georgia.
- The sales of the company are broadly categorized as under
- International sales (Sales from outside India)
- Local Deliveries (Deliveries in the India and US markets from their respective dual shore manufacturing facilities)
- Direct Exports
- Warehouse Sales (sales from warehousing facilities to respective domestic markets)
Financials of the company
Uniparts India Limited financials are given in the table below:
| Year | Total Assets (Rs. In crores) | Operating Revenue (Rs. In crores) | Profit after tax (Rs. In crores) | Basic EPS (Rs.) | Diluted EPS (Rs.) | RONW |
| Mar-2022 | 1,031 | 1,227 | 167 | 37.74 | 36.98 | 24.35% |
| Mar-2021 | 893 | 903 | 93 | 21.12 | 20.64 | 16.63% |
| Mar-2020 | 898 | 907 | 62 | 14.20 | 13.88 | 13.50% |
Strengths of the company
Some of the key strengths of Uniparts India Limited that investors can take note of are:
| Category | Details |
| Business model and financials |
|
| Future prospects |
|
Risks of investment
Here are some of the risks that investors of Uniparts India Limited IPO should know:
| Category | Details |
| Business viability and profitability |
|
| Competition | The company is in a niche market where it has to face competition in both domestic and international markets. |
| Industry outlook |
|
What is the Grey Market Premium (GMP) on Uniparts India Limited IPO?
As of December 2nd, 2022, the grey market premium for the shares of Uniparts India Limited was approximately Rs. 60 as per market observers.
Should you apply for Uniparts India Limited IPO?
Uniparts India is a global name with many international as well as domestic high-profile clientele. The company has also reported better results as compared to its peers in terms of RoCE and RoAE. The net profit margin is also within the industry standards. The IPO is currently reasonably priced making it a good investment opportunity in the mid-term to a long-term investment portfolio.
How to apply for Uniparts India Limited IPO?
Investors can invest in this IPO through the Fisdom app.
FAQs
The company has shown a consistent increase in RoNW over the past three years.
The average or the ideal investment horizon for investors looking to make some gains from Uniparts India Limited IPO is anywhere between mid-term to long-term parameters as per the preference of the investor.
The price band for Uniparts India Limited IPO is Rs.548-Rs.577.
The proposed shareholding pattern of Uniparts India Ltd post the IPO is approximately 66% promoter share and about 34% for the public.
Unipart India’s operations include activities in the manufacturing process that can be dangerous and may result in injury to property or persons in certain circumstances.
