Uniparts India Limited IPO – Price, Lot size, Open date, GMP & Review

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)	Minimum – 1 lot Maximum – 13 lots
Shares	Minimum – 25 Maximum – 325
Investment amount	Minimum – Rs. 14,425 Maximum – Rs. 1,87,525

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:

1. Conduct offer for sale as current equity shareholders of the company partially liquidate their stake.
2. 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	The company is engineering driven and provides vertically integrated precision solutions. They have a global business model that optimises the cost at the same time maintains the quality of the product. The company also has shown sound financial performance with respect to its own past as well as in comparison to its peers.
Future prospects	The company has a strong niche in the global off-highway vehicle systems and components segment. Their manufacturing and warehousing facilities are strategically located and help in offering good scale and flexibility for future growth opportunities. They have a strong and diversified revenue base through long-term relations with global customers and major OEMs.

Risks of investment

Here are some of the risks that investors of Uniparts India Limited IPO should know:  

Category	Details
Business viability and profitability	Since it has international clients, company is exposed to risk of exchange rate fluctuations that can impact its bottom line. High dependency on subsidiaries for market share expansion in the US can be detrimental to its performance. Furthermore, it has had negative cash flow from operations in the past.
Competition	The company is in a niche market where it has to face competition in both domestic and international markets.
Industry outlook	Company’s performance can be impacted by the different economic and sectoral cycles across markets like agriculture and CFM. The nature of the industry requires precision work which may hinder growth prospects.

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

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