Uniparts India IPO price band set at Rs 548-577; large stakeholders exiting company, no fresh issue of shares

Uniparts India IPO price band set at Rs 548-577; large stakeholders exiting company, no fresh issue of shares

Uniparts India IPO will open for public subscription on Wednesday, 30 November, and will close on 2 December. The issue is entirely an OFS by existing shareholders and promoters, and no fresh issue of shares. The price band for this initial public offering has been set in the range of Rs 548-577, with the lot size of 25 shares. The anchor book for the IPO will open on 29 November. The IPO share allotment will likely be finalized by 8 December, and the shares will be credited to the demat accounts of the investors by 9 December. Uniparts India’s shares are likely to debut on the stock exchanges on 12th December.

Uniparts India IPO consists entirely of an offer for sale (OFS) of 1.44 crore shares from its current promoters and shareholders. Ashoka Investment Holdings and Ambadevi Mauritius Holding are divesting their stake in the company by selling their entire holding of over 93 lakh shares. The current promoters are selling over 44 lakh shares and they hold 75.54% of a stake in the company. Uniparts India will not receive any capital from the IPO.

The company reported a revenue of Rs 948 crore in FY21 and a PAT sum of Rs 92 crore, while their earnings per share (EPS) was Rs 20.95. The revenue accrued from countries outside India is 72.3% in FY22, making Uniparts India extremely vulnerable to currency fluctuations. Currency prices further influence the company in countries where a portion of their manufacturing occurs. Further, the company is dependent on a limited number of customers. Revenue from their top ten customers amounted to 70.42% in FY22. QIIs (qualified institutional investors) will receive 50% of the issue, whereas retail investors will be allocated 35%. The remaining 15% will be set for non-institutional players.

Uniparts India is a renowned manager of engineered systems and solutions, while also supplying systems and solutions for the off-highway market in the agriculture and construction, forestry and mining and aftermarket sectors. Since Uniparts manufactures load bearing and structural parts of equipment, it is subject to heavy scrutiny. The company has an established presence in 25 countries across Europe, North America, Asia and Australia.