Uniparts India IPO Day 2: The IPO of Uniparts India, supplier of technical systems and solutions, The IPO of Uniparts India is entirely an offer-for-sale (OFS) of 14,481,942 shares by entities of the promoter group and existing investors. 2, 71 percent enrolled so far (until 10:28 a.m. Thursday). The price range for the Rs 836 crore IPO was set at Rs 548-577 per share.
Uniparts India IPO Day 2 Subscription
Until Thursday morning, 71 percent has been subscribed to Uniparts India’s IPO. The Rs 836-crore IPO received bids for 72,27,625 shares against 1,01,37,360 shares tendered.
The retail retail investor (RII) category received 0.94 subscriptions, non-institutional investors subscribed 1.12 times. In the case of qualified institutional buyers (QIBs), the IPO received bids for 9,450 shares against the 28,96,388 shares that were offered.
Uniparts India IPO: Number Size, Price Range and Listing
The IPO is entirely an offering for sale (OFS) of 14,481,942 shares by promoter group entities and existing investors. At the top end of the Rs 577 price range, the public offering is expected to raise Rs 836 crore. The price range for the Rs 836 crore IPO has been set at Rs 548-577 per 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 both NSE and BSE on December 12.
Uniparts India IPO: Quotas for QIB, NII and Retail Investors
For the IPO, Uniparts India has reserved 50 percent of the amount spent for Qualified Institutional Buyers (QIB). The company has set a 15 percent quota for non-institutional investors (NII) and a 35 percent quota for retail investors.
Investors can bid on 25 shares and in multiples thereof. Since the IPO is entirely an OFS, the company will receive no proceeds from the public offering.
Uniparts India IPO GMP
According to market observers, the unlisted shares of Uniparts India are currently trading at a premium of Rs 72 on the gray market, above the upper limit of Rs 577. It means that the shares of the company are trading on the gray market at Rs 649 each . The price is higher than the previous day’s Rs 648 per share, which is 12.48 percent higher than the maximum issue price. The GMP indicates that the expected listing price of the company’s stock will be higher than the issue price. The premium fluctuates based on market sentiment.
Should you subscribe to the Uniparts India IPO?
Choice Broking said Uniparts has better profitability and return ratios compared to the peer average. “Given the tailwind of global policies, such as massive infrastructure investments planned by major economies, improved mechanization in agriculture and global preference for the “China plus” strategy, we believe the company has sufficient leverage to expand its business at higher rates. to expand. That’s why we’re assigning a “SUBSCRIBE” rating to the issue,” it said.
Brokerage firm AnandRathi said that compared to its listed peers, the issue appears reasonably priced. “We recommend a “Subscribe-Long Term” rating for this IPO.”
KRChoksey Shares & Securities said that given the upper end of the price range and FY22 EPS, Uniparts IPO is valued at a P/E multiple of 15.6 times. This is on the downside compared to multiples at which the listed peers trade.
“Given the growth opportunities in the industry, Uniparts’ differentiated offerings, expansion of the addressable market and focus on added value, we recommend that Uniparts India Limited IPO be rated ‘SUBSCRIBE’,” the company said.
About Uniparts India
Uniparts India is a global manufacturer of engineering 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 player of precision off-road vehicle products with a presence across the entire value chain. The company’s product portfolio includes vertical product segments of 3-point lift systems and precision machined parts, as well as adjacent vertical product segments of power take-offs, structures and hydraulic cylinders or components thereof.
This is the company’s third attempt to go public. Previously, Uniparts had filed its IPO filings with Sebi in December 2018 and in September 2014. It also received regulatory approval to launch the IPO on the two occasions but did not go through with the initial share sale.
Axis Capital, DAM Capital Advisors and JM Financial are the issue’s lead managers.
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