Uniparts India IPO, worth Rs. 835.61 crore comprises entirely of an offer for sale of the said amount. There is no fresh issue component in this IPO. The offer for sale (OFS) component is by the promoters and early shareholders of the company. Here it must be noted that while the fresh issue component infuses fresh funds into the company, it also is EPS dilutive and equity dilutive. On the other hand, the OFS is just a transfer of shares so there is no fresh infusion of funds, but it also does not dilute the equity. The issue has been priced in the band of Rs. 548 to Rs. 577 per share and the IPO allotment price will be discovered post the book building of shares being completed during the IPO process.
Incorpotated in 1994, Uniparts India Limited is a manufacturer of engineered systems and solutions. The company 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 with the presence across over 25 countrieshttp://Website Link–https://allideass.com.
The company’s 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. Uniparts is a concept-to-supply player for precision products for off-highway vehicles (“OHVs”) with a presence across the value chain
The issue opens for subscription on 30th November 2022 and closes for subscription on 02nd December 2022 (both days inclusive). The basis of allotment will be finalized on 07th December 2022 and the refunds will be initiated on 08th December 2022. In addition, the demat credits are expected to happen on 09th December 2022 and the stock is scheduled to list on 12th December 2022 on the NSE and the BSE. The grey market price (GMP) trading normally starts about 4-5 days prior to IPO opening and continues till the listing date. In the case of Uniparts India Ltd, we already have GMP data for the last 4 days, which should give a reasonable picture of the likely listing performance.https://upstox.com/open-account/?f=4LB6Y8
There are 2 factors that impact the GMP. Firstly, the market conditions have a deep impact on the GMP, which includes the levels of the Nifty and Sensex as well as the general IPO market and macro conditions. Secondly, the extent of subscription for the IPO across the retail and the QIB segments also has a deep impact on the GMP as it is indicative of investor interest in the stock. Generally, strong QIB subscription is a trigger for a spike in GMP.
In India, the company have five manufacturing facilities, two at Ludhiana, Punjab, one at Visakhapatnam, Andhra Pradesh, and two at Noida, Uttar Pradesh.
Uniparts also have a manufacturing, warehousing and distribution facility at Eldridge, Iowa, acquired under the acquisition in 2005 of Olsen Engineering LLC, now known as Uniparts Olsen Inc. (“UOI”) and a warehousing and distribution facility at Augusta, Georgia.
The company’s global business model is based on :
1. The sales in regions outside India (“International Sales“).
2. The sales from our dual shore manufacturing facilities in India and the United States, in their respective domestic markets (“Local Deliveries“).
3. Export sales from Indian locations directly to overseas customers
4. Sales from the warehousing facilities in their respective domestic markets
Financial Highlights—-
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth | Total Borrowing |
|---|---|---|---|---|---|
| 31-Mar-19 | 958.44 | 1062.48 | 69.6 | 421.98 | 345.63 |
| 31-Mar-20 | 898.75 | 938.84 | 62.64 | 464.16 | 256.5 |
| 31-Mar-21 | 893.27 | 947.69 | 93.15 | 560.14 | 127.78 |
| 31-Mar-22 | 1031.18 | 1231.04 | 166.89 | 685.24 | 127.27 |
| 30-Jun-22 | 1063.51 | 347.76 | 50.52 | 713.93 | 114.66 |
Objects of the Issue—
To carry out the Offer for Sale of up to 15,731,942 Equity Shares by the Selling Shareholders.
– To achieve the benefits of listing the Equity Shares on the Stock Exchanges
IPO Details—–
| IPO Date | Nov 30, 2022 to Dec 2, 2022 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price | ₹548 to ₹577 per share |
| Lot Size | 25 Shares |
| Issue Size | 14,481,942 shares of ₹10 |
| Offer for Sale | 14,481,942 shares of ₹10 |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 50% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| Company Promoters |
Uniparts India IPO Tentative Date–
| Opening Date | Nov 30, 2022 |
| Closing Date | Dec 2, 2022 |
| Basis of Allotment | Dec 7, 2022 |
| Initiation of Refunds | Dec 8, 2022 |
| Credit of Shares to Demat | Dec 9, 2022 |
| Listing Date | Dec 12, 2022 |
IPO Lot Size–
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 25 | ₹14,425 |
| Retail (Max) | 13 | 325 | ₹187,525 |
| S-HNI (Min) | 14 | 350 | ₹201,950 |
| B-HNI (Min) | 70 | 1,750 | ₹1,009,750 |
| Pre Issue Share Holding | 75.54% |
| Post Issue Share Holding | 65.79% |