The initial public offering (IPO) of Uniparts India will open for subscription on Wednesday (November 30). The global engineering systems and solutions provider has fixed the price range of the IPO at Rs 548-577 per share. The IPO is an offer for sale (OFS) of up to 14,481,942 equity shares entirely by the promoter group entities and existing investors.
Those offering shares in the OFS include promoter group entities The Karan Soni 2018 CG-NG Nevada Trust, The Mehar Soni 2018 CG-NG Nevada Trust, Pamela Soni and investors Ashoka Investment Holdings Limited and Ambadevi Mauritius Holding Limited.
Since the IPO will be purely OFS, the company will not receive any proceeds from the public issue. The IPO will close on December 2.
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“The company’s international sales account for more than 82 per cent of total sales in FY22. Revenue and margins have grown consistently over the last three financial years. The market cap implied at the upper price band of the issue is approximately Rs. 2,604 crores.” and P/E multiple of 15.28 times, which looks reasonable compared to its peers and pre-IPO shares, told Business Today.
Latest Gray Market Premium
Market participants said Uniparts India IPO gray market premium (GMP) was seen at around Rs 80. Upper band price of Rs 577 per equity share.
One lot consists of 25 shares and retail investors can buy 325 shares at the upper end of the price band for a maximum of 13 lots for Rs 1,87,525.
Qualified institutional buyers category reserved at 50 per cent; 35 per cent for retail investors; and 15 per cent for non-institutional investors.
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The basis for share allotment could happen on December 7, followed by a possible listing on December 12.
Uniparts India is a supplier of systems and components to the off-highway market in the agriculture and construction, forestry and mining and aftermarket sectors.
Axis Capital, DAM Capital Advisors and JM Financial are the book-running lead managers to the issue.
