Price Band, GMP, Listing; Key Details Investors Should Know

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The Initial Public Offering (IPO) of engineered systems and solutions manufacturer, Uniparts India is set to open for application on Wednesday (November 30), going through till December 2. Anchor investors will be able to bid on the shares from November 29 onwards. The company is looking to raise Rs 836 crores through this public listing. The price band for the IPO has been set at Rs 548 to 577 per share.

Investors can bid for the shares with a lot size of 25 shares and multiples thereafter. Individual retail investors’ buying capacity is capped at 13 lots (or 325 shares) per investor. Grey market sentiments regarding the IPO seem to be positive.

The share’s price in the grey market is largely stable and is indicating a positive reaction towards the issue. The latest reported grey market premium (GMP) of the IPO was Rs 131. This means that the grey market expects the IPO to get a listing of around Rs 708 ( Rs 577 + 131).

The IPO, comprising 14,481,942 equity shares being sold by promoter group entities and existing investors, is wholly constituted as an Offer for Sale (OFS). Half the shares of the public issue are reserved for institutional buyers, while another 35 per cent are earmarked for retail investors. The rest of the shares are reserved for non-institutional buyers. The entire IPO being OFS implies that the company will receive no proceeds from the issue.

The company’s shares are expected to list on the bourses on December 12.

Uniparts is a global manufacturer of engineered systems and solutions. The company claims to be a leading supplier of systems and components for the off-highway vehicles market in the agriculture, construction forestry & mining (CFM) and aftermarket sectors. It currently has a presence in 25 countries. The firm operates out of six manufacturing facilities and four warehousing locations spread across India, Europe, and the US.

Uniparts India’s product portfolio encompasses core product verticals of 3-point linkage systems (3PL) and precision machined parts (PMP). It also has adjacent product verticals of power take-off, fabrications and hydraulic cylinders or their components.

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