The initial public offering (IPO) of engineering systems and solutions manufacturer, Uniparts India, is expected to open for subscription on Wednesday (November 30) and run until December 2. Anchor investors can bid for the shares starting November 29. The company aims to raise Rs 836 crores through this public listing. The price range 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. The purchasing capacity of individual retail investors is limited to 13 lots (or 325 shares) per investor. Gray market sentiment regarding the IPO seems positive.
The share price on the gray market is largely stable and indicates a positive response to the issuance. The last reported gray market premium (GMP) of the IPO was Rs 131. This means that the gray market expects the IPO to be quoted at around Rs 708 (Rs 577 + 131).
The IPO, consisting of 14,481,942 shares to be sold by entities of the promoter group and existing investors, has been prepared entirely as an Offer for Sale (OFS). Half of the public offering’s shares are reserved for institutional buyers, while another 35 percent are for retail investors. The rest of the shares are reserved for non-institutional buyers. Because the entire IPO is OFS, it means the company will not receive any proceeds from the issue.
The company’s shares are expected to start trading on December 12.
Uniparts is a global manufacturer of technical systems and solutions. The company claims to be a leading supplier of systems and components to the off-road vehicle market in the agriculture, construction, forestry and mining (CFM) and aftermarket sectors. It is currently present in 25 countries. The company operates from six manufacturing facilities and four storage locations across India, Europe and the US.
Uniparts India’s product portfolio includes core vertical products of 3-point lifting systems (3PL) and precision machined parts (PMP). It also has adjacent product verticals of power take-offs, fabrications and hydraulic cylinders or their components.
Read all the latest business news here