The initial public offering (IPO) of Uniparts India would open for subscription on Wednesday (November 30). The global engineering systems and solutions provider fixed the IPO price band at Rs 548-577 per share. The IPO is entirely an offer for sale (OFS) of 14,481,942 equity shares by promoter group entities and existing investors.
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.
Since the IPO would be entirely an OFS, the company would not receive any proceeds from the public issue. The IPO would conclude on December 2.┬а
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“The company’s international sales accounted for over 82 per cent of total sales in FY22. There is a steady growth in revenues and margins over the past three fiscal years. The implied market cap at the upper price band of the issue stands at approx. Rs 2,604 crore and the asking P/E multiple is 15.28x, which looks reasonable as compared to its peers. The market is at all-time highs which should also boost the interest of investors,” Manan Doshi of UnlistedArena.com,┬аdealing in unlisted & pre-IPO shares, told Business Today.
Latest grey market premium
Market participants said Uniparts India IPO grey market premium (GMP) was seen around Rs 80. It implies that the grey market expected the company to list around Rs 657 (Rs 577 + Rs 80), which is nearly 14 per cent higher than the IPO’s upper band price of Rs 577 per equity share.
One lot comprises 25 shares and retail investors can buy a maximum of 13 lots of 325 shares worth Rs 1,87,525 at the upper end of the price band.
The qualified institutional buyers’ category is reserved at 50 per cent; 35 per cent for retail investors; and 15 per cent for non-institutional investors.
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The basis of share allotment may happen on December 7, followed by a likely listing on December 12.
Uniparts India is a supplier of systems and components for the off-highway market in the agriculture and construction, forestry and mining and aftermarket sectors.┬а
Axis Capital, DAM Capital Advisors and JM Financial are the book-running lead managers to the issue.
