Uniparts India Share Price: Uniparts India made a muted debut on Monday, December 12, listing at Rs 575 on BSE, a discount of 0.35 per cent over its issue price of Rs 577 apiece. The engineered systems and solution provider debuted at a discount of 0.35 per cent per cent at Rs 575x as against the given issue price on the National Stock Exchange (NSE).
The company had set a price band of Rs 548-577 per share for the Initial Public Offering (IPO).
Uniparts India’s IPO, to raise up to Rs 836 crore, was open for subscription from November 30 till December 2 with a subscription of 25.32 times.
The entire issue was an Offer for Sale (OFS), where Ashoka Investment Holdings and Ambadevi Mauritius Holdings were to sell their stake. Both these entities together held a 20.68 percent stake in the company currently. An Offer for Sale (OFS) means that the company will not receive any proceeds from the sale of shares.
Ahead of the IPO, Uniparts India had raised Rs 250.69 crore from 21 anchor investors, who subscribed to the company’s shares at Rs 577 apiece. Anchor investors included Nomura, Morgan Stanley, BNP Paribas, Invesco, and Abbakus.
The issue comprised only offer for sale (OFS). The OFS comprised sale of 1,44,81,942 equity shares by selling share holders i.e. promoter selling shareholders (44,00,000 equity shares), investor selling share holders (93,34,834 equity shares) and individual selling shareholders (7,47,108 equity shares).
On post issue expanded equity, the holding of both promoter group selling shareholders will stand decline to 13.81 per cent each from 17.51 per cent each pre issue and that of Pamela Soni decreased to 2.69 per cent from 10.10 per cent pre issue. The stake of both investor selling shareholders will be nil post issue.
The objects of the offer were to achieve the benefit of listing the equity shares on the stock exchanges as well as provide an exit option, especially to investor selling shareholders as well as promoters and some of individual selling shareholders.
Uniparts India is a global manufacturer of engineered systems and solutions and is one of the leading supplier of systems and components for the off-highway market in the agriculture and construction, forestry, and mining segments. The company is present in over 25 countries.
Among the company’s key products include the 3PL, which is a system that consists of different assemblies attached to an agricultural tractor. For the financial year 2022, 3PL contributed to more than half of the company’s overall topline. Uniparts expects the global market for 3PL, valued at $370 million in 2021, to grow between 6-8 percent between 2021-2026.
PMP is another key product from the company’s stable that are structural and load bearing parts of the equipment, varying in design and technical specification.
What Should Investors Do?
Ravi Singhal, CEO, GCL, said: “As a result of market conditions, the stock is listed below the issue price. On the other hand, stocks appear to be good long-term investments; keep stop loss at Rs 525 and target price Rs 666.”
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