Uniparts India Ltd GMP On The Decline

Uniparts India IPO was launched on 30 Nov 2022 and closed on 2 Dec 2022. The complete IPO is only an offer for sale by the existing shareholders, hence no capital will be raised for the company. The promoters shareholding will reduce from 75.54% to 65.79% after the IPO. 

Uniparts India Ltd is a global manufacturer of engineered systems and solutions. It is a leading supplier of systems and components for the off-highway market in the agriculture, construction, forestry & mining (CFM) etc.  It provides a  comprehensive solution of high-quality, critical products and components for Off Highway Vehicles (OHV) . It has  end-to-end solutions ranging from product conceptualization, design, prototyping, testing, development and assembly to customised packaging and delivery. The company’s product portfolio includes core product verticals of 3-point linkage systems and precision machined parts as well as adjacent product verticals of power take off, fabrications and hydraulic cylinders and its components.

Uniparts Group has at last successfully launched its IPO after 3 failed attempts. The IPO is expected to raise Rs.836 crores  comprising 14,481,942 equity shares. The allocation is 35% to retail investors, 15% to (non institutional Investors) NII’s and 50 % to (qualified institutional buyers) QIB’s.  It was oversubscribed  25.32 times.  The category for Qualified Institutional Buyers (QIBs) was subscribed 67.14 times. The non-institutional investors  category received 17.86 times subscription and the category for Retail Individual Investors (RIIs) was subscribed 4.61 times. 

The shares were allotted at Rs. 577 per share on 7 Dec 2022. Listing on the BSE and NSE is expected on 12 Dec.

The lead managers of the issue are Axis Bank, Dam Capital Advisors and JM Financial. Link Intime has been appointed as the registrar. 

Uniparts profits have grown from Rs. 62.64 cr in the fiscal year 2020FY to Rs. 93.15 cr in the fiscal year 2021. In the year 2022 it recorded a profit of  Rs. 166.89 cr. The group has shown a sharp improvement in its top and bottom lines making this IPO a very reasonably priced one. 

It had a  GMP( grey market premium) of Rs.68 per share earlier this week. However  the volatile market conditions are dampening this IPO. The GMP has reduced to Rs. 40 per share and showing indications of further going down. Some brokerage firms are still bullish on this stock and are considering it a good long term bet. All eyes are on the listing day to see if it lives up to the investors expectations.

Quick Recap

Lead Managers: JM Financial Limited and Axis Bank and Dam Capital Advisors

Registrar : Link Intime India Private Limited

Issue Size : Rs. 836 crores

Subscription : Oversubscribed 25.32 times

Listing Date : Dec 12 on NSE and BSE

Lot Size : 25 shares

Allotment Price : Rs.  Rs 577 per share

Listing Price : NA

GMP as on 10 Dec : Rs. 40

For more details on Uniparts IPO check out “Uniparts India Limited IPO, Listing Date And GMP” and “IPO Season And The Outcome So Far – Bikaji Foods, Archean Chemicals, Keystone Realtors and Uniparts India

DisclaimerThe investments discussed or recommended in the market analysis, research reports, etc. may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and only after consulting such independent advisors as may be necessary.

Uniparts India Ltd GMP On The Decline
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