Uniparts India IPO: Company Files DRHP with SEBI

Uniparts India Ltd, an engineering systems and solutions provider, has filed the Draft Red Herring Prospectus (DRHP) with the capital markets regulator Securities & Exchange Board of India (SEBI) to raise funds via an initial public offering (IPO).

As per the draft papers, Uniparts India IPO is entirely an Offer for Sale (OFS) of 15,731,942 equity shares by promoter group entities and existing investors. 

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 will sell shares in the Uniparts India IPO.

This is the third time Uniparts India has filed the draft papers for its IPO with SEBI. Earlier in December 2018 and September 2014, the company had also filed DRHP for IPO. It had received the regulatory approval for the IPO but did not go ahead with the initial share sale.

Uniparts India has appointed Axis Capital, DAM Capital Advisors and JM Financial as the book running lead managers for the issue.

Objectives of Uniparts India IPO

Uniparts India IPO is a complete OFS by promoter group entities and existing investors. Hence, the company will not receive any proceeds from the public issue and all the proceeds will go to the selling shareholders.

About Uniparts India

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 agriculture and construction, forestry and mining and aftermarket sectors.

The company has six manufacturing facilities and four warehousing locations across the US, Europe and India. The company has its presence across 25 countries.

Uniparts India’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 fabrications and hydraulic cylinders or components thereof. 

It serves OHV players, including OEMs and aftermarket retail store chains, through our global business model based on its dual-shore integrated manufacturing, warehousing and supply chain management systems and solutions.

Uniparts India Financials 

Uniparts India reported consolidated revenue from operations of Rs 903.14 crore in FY21, down from Rs 907.22 crore in FY20. The company’s net profit in FY21 increased to Rs 91.21 crore from Rs 62.75 crore in FY20.

On a standalone basis, the company’s total revenue from operations stood at Rs 591.17 crore for FY21, compared to Rs 537.86 crore for FY20. It posted a net profit of Rs 43.39 crore in FY21 versus Rs 15.76 crore in the previous FY20.

Management

Gurdeep Soni is the Chairman & Managing Director of Uniparts India, and Paramjit Singh Soni is its Vice Chairman & Director.

Sudhakar Kolli is the Group Chief Operating Officer, and Munish Sapra is the Group Chief Financial Officer.

Herbert Coenen is the Non-Executive Director. Alok Nagory, Sanjeev Kumar Chanana, Sharat Krishan Mathur, and Shradha Suri are the company’s Independent Directors.

Internal and External Risks

• Uniparts India depends on a limited number of customers for a significant portion of its revenue.
• The company is exposed to foreign currency exchange rate fluctuations.
• High cost and unavailability of raw materials and labour may adversely affect the company’s business, financial condition and operations.
• Cyclical effects in the global and domestic economy, specifically in the agriculture and CFM sectors
• Stricter environmental and, health and safety laws, and regulations in the jurisdiction where the company operates.

How to apply for Uniparts India IPO?

You can apply for the Uniparts India IPO in these ways:

UPI

Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more

Demat Account

1. If you are an Existing TradeSmart demat account holder and wish to apply for Uniparts India IPO. Click Here
2. If you don’t have a TradeSmart Account? Sign up

FAQs

What is a Demat Account?

A Demat account is an essential account that holds and maintains financial securities in a digital form and to trade in the share market. In India, Demat accounts are maintained by depositories. In India, two depositories are the National Securities Depository Limited and the Central Depository Services Limited.

What is an offer for sale?

An offer for sale is a mechanism by which existing shareholders of a company dilute their stake by selling their shares on an exchange. 

Anyone including retail investors, companies, Foreign Institutional Investors (FIIs) and Qualified Institutional Buyers (QIBs) can bid on these shares.

How can you check the subscription status of the IPOs?

The subscription status of any live IPO can be checked on the websites of stock exchanges, BSE or NSE. You need to follow the below procedure to check your subscription status on the NSE website:

Step 1: Go to the Home Page of the NSE website and select ‘Market Data’. Click on ‘New Public Issue’ in the drag down menu

Step 2: Select the Company Name

Step 3: You can check the NSE bid details and the Consolidated bid details. The bid details of all the categories of investors are reflected.

Where can you check IPO allotment status?

There are two ways to check the allotment status of your IPO application online. The IPO allotment status can be checked through the website of BSE or that of the IPO registrar, such as KFintech, Link Intime, or Bigshare Services.