The initial public offering (IPO) of Uniparts India, a manufacturer of agriculture and construction equipment components, will open for subscription today. The three-day IPO of the manufacturer of the engineered system will close on December 2, 2022. 

The company has fixed a price band of ₹548 to ₹577 per share for the IPO, which is completely an offer for sale (OFS) of 14,481,942 equity shares by promoters and existing investors. At the upper price band, the issue would fetch ₹835.61 crore to the company.

The IPO will see existing investors Ashoka Investment Holdings and Ambadevi Mauritius Holding exiting the company by selling their entire shareholding of 71.8 lakh shares and 21.54 lakh shares, respectively.

As per the offer document filed with SEBI, promoter group entities, which currently hold a 75.3% stake in the company, will offload 9.75% shareholding via OFS. Among promoters, Pamela Soni will offload 22 lakh shares, while The Karan Soni 2018 CG-NG Nevada Trust and The Meher Soni 2018 CG-NG Nevada Trust proposed to sell 11 lakh shares each.

Ahead of the IPO, the company has raised ₹250.69 crore in the pre-IPO round by allotting 43,44,582 equity shares to 21 anchor investors (including 9 schemes of 5 MFs) at ₹577 per share. The anchor book opened for a day on November 29. The key investors which participated in the issue include Nomura, Morgan Stanley, BNP Paribas, IMCO, Carmignac, Abakkus, Theleme, HDFC MF< Aditya Birla Sun Life, Nippon Life Trustee, Bajaj Allianz Life, Invesco, Mahindra Manulife, Ptimix, Carnelian Capital, ICG Q Ltd, and others.

Here are key things to know about the Uniparts India IPO:

IPO dates

The issue will open for public subscription on November 30 and the bidding will close 2, 2022.

Issue size

The IPO is completely an offer for sale (OFS) of 14,481,942 equity shares by promoters and existing investors.

Price band

The company has fixed an issue price of ₹548-₹577 per share, which would fetch ₹835.61 crore at the upper price band.

Lot size

Investors can make a bid for a minimum of 25 equity shares and in multiples of 25 shares thereafter. This means retail investors can buy a maximum of 325 shares worth ₹187,525.

IPO reserved quota

The company has reserved 50% of the issue for qualified institutional buyers, 15% for non-institutional investors, and the remaining 35% for retail investors.

Financial performance

For the June quarter of 2022 (Q1 FY23), the company reported profit after tax (PAT) of ₹50.52 crore, while total revenue stood at ₹347.76 crore. For the financial year ended March 2022 (FY22), the company posted a 79.2% year-on-year growth in consolidated profit to ₹167 crore, while it grew by 49% to ₹93 crore in FY21. Consolidated revenue from operations jumped 36% YoY to ₹1,227 crore in FY22, while it dropped 0.45% to ₹903 crore in FY21.

IPO review

As many as 12 brokerage houses, including Religare Broking Limited, BP Equities (BP Wealth), Capital Market, Nirmal Bang, have recommended a “subscribe” rating to the IPO.  

About company

Established in 1994, Uniparts India is a global manufacturer of engineered systems and solutions and 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 on account of their presence across over 25 countries. The company's product portfolio includes core product verticals of 3-point linkage systems (3PL) and precision machined parts (PMP) as well as adjacent product verticals of power take-off (PTO), fabrications, and hydraulic cylinders or components.

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