Uniparts India IPO opens on November 30 – Here are 10 things you need to know before you subscribe

Nov 30, 2022

By: bhakti.makwana@timesinternet.in

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IPO dates

The IPO of Uniparts India, an engineered systems and solutions provider, opens its IPO for subscription on November 30 and closes on December 2. The price band of the IPO is set at ₹548-577 a share.

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Size of the IPO

The ₹836 crore IPO of the New Delhi-based company is an offer for sale of 14.4 million shares by promoters and shareholders.

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What does the company do?

Uniparts India manufactures critical products and components for the off-highway vehicles (OHV) industry. More specifically, it caters to the agriculture, construction forestry and mining (CFM) and aftermarket sectors.

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More about the company

Uniparts India has a presence in 25 countries around the world. It has five manufacturing facilities – two each in Punjab and Uttar Pradesh and one in Andhra Pradesh.

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Analysts’ views

“In view of healthy financials, strong global presence, leadership position in supply of systems and components, growing opportunities in the precision machined parts and 3-point linkage systems markets, and attractive valuation, we recommend a ‘SUBSCRIBE’ to the issue,” said analysts at Reliance Securities.

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Analysts’ views

“When compared to its listed peers, the issue appears to be reasonably priced. We recommend a "Subscribe-Long Term" rating to this IPO,” said analysts at Anand Rathi.

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Profitability rose 80 percent in FY22

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Revenue from top 10 clients

In its draft filing, Uniparts India noted that the top ten customers contributed to 70.4 percent of its total revenue in FY22, down from 73 percent in FY21.

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High grey market demand

The grey market premium (GMP) of the company’s shares stand at ₹65 per share. GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges.

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Allotment and listing date

The company’s shares are scheduled to be allotted on December 7 and listed on December 12 on the BSE and NSE.

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