uniparts India IPO: The initial public offering of engineering systems and solutions provider Uniparts India, which opened for public subscription on Wednesday and closed today (Friday), has been subscribed 2.02 times so far. Rs 836 crore IPO Bids were received for 2,04,29,925 shares against 1,01,37,360 shares on offer at the end of the second day on Thursday.
Uniparts India IPO Day 3: Quota-wise subscription so far
The retail individual investors (RIIs) category was subscribed 2.01 times, the non-institutional investors portion was subscribed 3.41 times. In the case of qualified institutional buyers (QIBs), the IPO received bids for 28,16,875 shares against 28,96,388 shares on offer.
Uniparts India IPO is an offer for sale (OFS) of 14,481,942 equity shares wholly owned by the promoter group entities and existing investors.
Uniparts India IPO Day 3: Current GMP
According to market observers, the unlisted shares of Uniparts India are currently trading at a premium of Rs 45 against the upper band of Rs 577 in the gray market. This means that the company’s shares are trading at Rs 622 per share in the gray market. The price is much lower than Rs 648 per share on the opening day of the IPO (30 November). GMP indicates that the expected list price of the company’s shares is going to be higher than the issue price. The premium fluctuates depending on the sentiments in the markets.
About Uniparts India
Uniparts India is a global manufacturer of engineered systems and solutions. It is one of the leading suppliers of systems and components for the off-highway market in the agriculture and construction, forestry and mining and aftermarket sectors due to its presence in more than 25 countries.
It is a concept to supply precision products with presence across the value chain for off-highway vehicles. The company’s product portfolio includes the core product verticals of 3-point linkage systems and precision machined parts as well as adjacent product verticals of power take off, fabrication and hydraulic cylinders or parts thereof.
This is the company’s third attempt at going public. Earlier, Uniparts filed its IPO papers with SEBI in December 2018 and September 2014. It had also received regulatory approval to launch an IPO on two occasions, but did not proceed with the initial share sale.
Axis Capital, DAM Capital Advisors and JM Financial are the book running lead managers to the issue.
Uniparts India IPO: What the brokerages say
KRChoksey Shares & Securities said that considering the upper limit of the price band and FY22 EPS, the P/E multiple of Uniparts IPO is 15.6 times. This is on the lower end in comparison to the multiples at which listed peers are trading.
It said, “Considering the industry growth opportunities, Uniparts’ differentiated offering, expansion of the addressable market and focus on value addition, we recommend that the Uniparts India Limited IPO be ‘subscribed’ at a rate of Rs. to be done.”
Anandrathy said the issue appears to be reasonably priced compared to listed peers. “We recommend a “Subscribe-Long Term” rating to this IPO.”
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