Uniparts India’s ₹836 crore IPO to open on November 30

• Uniparts India intends to raise ₹836 crore entirely via an offer for sale by existing shareholders.
  
• The price band for the IPO is set at ₹548-577 per share, with each lot consisting of 25 shares.
  
• Uniparts India was founded in 1994 and is an engineered systems and solutions provider based in New Delhi.
  

Uniparts India, an engineered systems and solutions provider, is all set to open its initial public offer (IPO) for subscription on November 30. The New Delhi-based company plans to raise ₹836 crore from the public issue.

Founded in 1994, Uniparts India obtained the market regulator Securities Exchange Board of India’s (SEBI) clearance to launch its IPO twice, but never went ahead with it.

The price band has been fixed between ₹548-577 per share. Each lot will consist of 25 shares.

The IPO will go live on November 30 and will be available for subscription till December 2, according to the red herring prospectus filed by the company.

In its filing, Uniparts India mentioned that the entire issue will be an offer for sale of 14.4 million existing shares.

Since this is entirely an offer for sale, the company will not receive any proceeds from the issue. The IPO will see divestment from promoter group entities - The Karan Soni 2018 CG-NG Nevada Trust, The Meher Soni 2018 CG-NG Nevada Trust, Pamela Soni; apart from Ashoka Investment Holdings and Ambadevi Mauritius Holding.

Understanding the business of Uniparts India

Uniparts manufactures critical products and components for the Off Highway Vehicles (OHV) industry. More specifically, it caters to the agriculture, construction forestry & mining (CFM) and aftermarket sectors.

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

The company also has a manufacturing, warehousing and distribution facility in Iowa, and another in Georgia. A significant portion of its revenue is from its top ten customers.

In its filing, Uniparts India noted that the top ten customers contributed to 70.4% of its total revenue in FY22, down from 73% in FY21. However, it added that this is still a significant number and that the loss of a major customer could affect its financial results and prospects.

Another important risk that the company has highlighted in its filing is its reliance on agriculture, construction, forestry and mining. For instance, fertilizer prices, weather conditions can have a direct impact on agricultural production, which is beyond the company’s control.

Here are the company key financial metrics:


Source: Red herring prospectus

Uniparts India has multiple listed peers, including Bharat Forge and Balkrishna Industries.


Note: Performance as on November 25, 2022

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