Non-Institutional Quota Fully Subscribed; Latest GMP; Details Investors Should Know

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Uniparts India IPO Day 2: The initial public offering of engineering systems and solutions provider Uniparts India, wThe Uniparts India IPO is entirely an offer-for-sale (OFS) of 14,481,942 equity shares by promoter group entities and existing investors.hich was opened for public subscription on Wednesday till December 2, has been subscribed 71 per cent till now (Thursday till 10.28 am). The price band for the Rs 836-crore IPO was fixed at Rs 548-577 a share.

Uniparts India IPO Day 2 Subscription

Till morning on Thursday, Uniparts India IPO has been subscribed 71 per cent. The Rs 836-crore IPO received bids for 72,27,625 shares against 1,01,37,360 shares on offer.

The category for retail individual investors (RIIs) received 0.94 times subscription, non-institutional investors portion was subscribed 1.12 times. In the case of qualified institutional buyers (QIBs), the IPO recieved bids for 9,450 shares as against the 28,96,388 shares on offer.

Uniparts India IPO: Issue Size, Price Band and Listing

The IPO is entirely an offer-for-sale (OFS) of 14,481,942 equity shares by promoter group entities and existing investors. At the upper end of the price band of Rs 577, the public issue is expected to fetch Rs 836 crore. The price band for the Rs 836-crore IPO has been fixed at Rs 548-577 a share.

Those offering shares in the OFS are promoter group entities — The Karan Soni 2018 CG-NG Nevada Trust, The Meher Soni 2018 CG-NG Nevada Trust, Pamela Soni — and investors — Ashoka Investment Holdings Ltd and Ambadevi Mauritius Holding Ltd.

The company will be listed on December 12 on both NSE and BSE.

Uniparts India IPO: Quota for QIB, NII and Retail Investors

For the IPO, Uniparts India has reserved 50 per cent of the issued for qualified institutional buyers (QIB). The company has fixed 15 per cent quota for non-institutional investors (NII) and 35 per cent quota for retail investors.

Investors can bid for 25 shares and in multiples thereof. Since the IPO is entirely an OFS, the company will not receive any proceeds from the public issue.

Uniparts India IPO GMP

As per market observers, the unlisted shares of Uniparts India are currently trading at a premium of Rs 72 in the grey market, over its upper band of Rs 577. It means that the company’s shares in the grey market are trading at Rs 649 apiece. The price is higher than previous day’s Rs 648 per share, which is 12.48 per cent higher than the maximum issue price. The GMP indicates that the expected listing price of the company’s shares is going to be higher as againt the issue price. The premium gets fluctuated based on the sentiments in the markets.

Should You Subscribe To Uniparts India IPO?

Choice Broking said Uniparts has better profitability and return ratios compared to the peer average. “Considering the global policy tailwinds like massive infrastructure capex planned by the major economies, improving mechanisation in the agriculture and global biasness towards “China plus” strategy, we feel the company has adequate levers to expand its business at higher rates. Thus, we assign a “SUBSCRIBE” rating for the issue,” it said.

Brokerage firm AnandRathi said that when compared to its listed peers, the issue appears to be reasonably priced. “We recommend a “Subscribe-Long Term” rating to this IPO.”

KRChoksey Shares & Securities said that considering the upper limit of the price band and FY22 EPS, Uniparts IPO is valued at a P/E multiple of 15.6 times. This is at the lower end when compared to multiples at which the listed peers are trading.

“Considering the industry growth opportunities, differentiated offerings of Uniparts, expansion of the addressable market and focus on value addition, we recommend that Uniparts India Limited IPO be rated ‘SUBSCRIBE’,” it said,” it added.

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 agriculture and construction, forestry and mining and aftermarket sectors on account of its presence across over 25 countries.

It is a concept-to-supply player of precision products for off-highway vehicles with presence across the value chain. The company’s product portfolio includes core product verticals of 3-point linkage systems and precision machined parts as well as adjacent product verticals of power take off, fabrications and hydraulic cylinders or components thereof.

This is the company’s third attempt to go public. Earlier, Uniparts had filed its IPO papers with Sebi in December 2018 and in September 2014. It also obtained the regulator’s clearance to launch the IPO on the two occasions but did not go ahead with the initial share sale.

Axis Capital, DAM Capital Advisors and JM Financial are the book running lead managers to the issue.

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