Uniparts India Ltd. IPO

Uniparts India Ltd.

IPO Details

Bidding Dates

30 Nov - 02 Dec '22

Bidding Dates

Min. Investment

₹13,700

Min. Investment

Lot Size

25.00

Lot Size

Price Range

₹548 - ₹577

Price Range

Issue Size

794 Cr

Issue Size

IPO Doc

(D)RHP PDF  

(D)RHP PDF

About Company

Uniparts India, a global manufacturer of engineered systems and solutions, will launch its initial public offering (IPO) on November 30 to raise over Rs 835 crore. Incorporated in 1994, Uniparts India Ltd is one of the leading suppliers of systems and components for the off-highway market in the agriculture and construction, forestry and mining (CFM) and aftermarket sectors on account of their presence across over 25 countries. Uniparts India is a concept-to-supply player for precision products for off-highway vehicles (OHVs) with a presence across the value chain. 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 thereof. Uniparts had an estimated 16.68% market share of the global 3PL market in Fiscal 2022 in terms of value and an estimated 5.92% market share in the global PMP market in the CFM sector in Fiscal 2022 in terms of value. Uniparts provides replacements of 3PL parts to organized aftermarket retailers and distributors in North America, Europe, South Africa and Australia. In India, Uniparts has 5 manufacturing facilities, 2 at Ludhiana, 1 at Visakhapatnam, and 2 at Noida. It also has set up a distribution facility in Noida. In the United States, the company has a manufacturing, warehousing and distribution facility at Eldridge, Iowa, acquired in 2005 of Olsen Engineering LLC, now known as Uniparts Olsen Inc. and a warehousing and distribution facility at Augusta, Georgia. Uniparts India IPO will open for public subscription on November 30 and close on December 2. The Rs 835.61 crore IPO comprises the sale of more than 1.44 crore equity shares by promoters and investors. The company has fixed the price band for the issue at Rs 548 – 577 per share. The company’s promoters Karan Soni 2018 CG-NG Nevada Trust, Meher Soni 2018 CG-NG Nevada Trust, Pamela Soni, Ashoka Investment Holdings and Ambadevi Mauritius Holdings will tender shares in the IPO. The company will not receive any proceeds from the public issue, and all the funds will go to the selling shareholders.

Important Dates - Uniparts India IPO

Application opens on 30th November 2022
Last date of application 2nd December 2022
Date of Allotment 7th December 2022
Refund begins from 8th December 2022
Credit of shares to Demat 9th December 2022
Listing date 12th December 2022

Why should you invest in Uniparts India Ltd. IPO?

Uniparts India has posted a decent financial performance over the years and has a niche place in the segment. The Uniparts India IPO also seems reasonably priced as per the financial details provided by the company.

 

Uniparts India Ltd IPO Noteworthy Highlights

Here are some of the key details and information about Uniparts India IPO that investors should know before investing:

- Uniparts India has a leading presence in the manufacture of 3PL and PMP products globally on account of it serving some of the largest global companies. Most of the company’s products are structural and load-bearing parts of equipment and are subject to strict tolerances, specifications, and process controls. 

- In Fiscal 2022, the company’s customer base comprised over 125 customers in over 25 countries globally. 

- Bobcat, TAFE and Kramp are some of the customers with whom it has relationship for over 15 years, while with customers like Yanmar, it has a relationship for over 10 years.

- Gurdeep Soni and Paramjit Singh Soni are the promoters of Uniparts India.

- The total promoter shareholding in the company is 75.54%. It will reduce to 65.79% after the IPO.

- Uniparts India IPO lot size is 25 shares, and a retail-individual investor can apply for up to 13 lots, making the total investment of 325 shares or Rs 187,525.

- Axis Capital, DAM Capital and JM Financial are the joint Book Running Lead Managers (BRLMs) to the issue.

- The company has reserved 50% of the offer for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 35% for retail investors.

 

Financial Snapshot - Uniparts India IPO

Check out the financial performance of Uniparts India for recent years:

Financial Year Total Assets Total Revenues Net Profit
March 2020 Rs 898.75 crore Rs 938.84 crore Rs 62.64 crore
March 2021 Rs 893.27 crore Rs 947.69 crore Rs 93.15 crore
March 2022 Rs 1,031.18 crore Rs 1,231.04 crore Rs 166.89 crore


Uniparts India Ltd. IPO - SWOT Analysis

Strengths

Uniparts India has a leading market presence in the global off-highway vehicle systems and components segment. Its global business model serves as an effective solution for customers seeking to rationalize their global sourcing and supply chain by providing them with multiple choices. It has long-term relationships with key global customers in the agriculture and CFM sectors, including major OEMs. Its strategically located manufacturing and warehousing facilities offer scale and flexibility. The company also enjoys a healthy financial position with a robust financial performance metric.

Weaknesses

The company depends on a limited number of customers for a significant portion of its revenues. Its business is impacted by cyclical effects in the global and domestic economy, specifically in the agriculture and CFM sectors, which may have an adverse effect on its business, financial condition, results of operations and prospects. Moreover, the company’s dependence on its subsidiaries, Uniparts USA Ltd and Uniparts Olsen Inc., exposes it to significant risks.

Opportunities

Uniparts India is well positioned to benefit from increasing mechanization in the agriculture and CFM sectors through leveraging its global business model, which allows it to efficiently serve OEMs across multiple global locations, contributing to its increasing efforts to rationalize their supply chain and asset/working capital management.

Threats

Availability and cost of raw materials and labour may adversely affect the company’s business, financial condition, results of operations and prospects. It is exposed to foreign currency exchange rate fluctuations. Further, the current and continuing impact of the COVID-19 pandemic on its business and operations, including its impact on the demand for equipment in which components and parts manufactured and supplied by the company are used, may have an adverse effect on its business, results of operations, financial condition and cash flows.

 

Uniparts India IPO Grey Market Premium

Date GMP
28th November Rs.150
25th November Rs.150


A competitive analysis

As per the offer documents, Uniparts India has named Balkrishna Industries, Bharat Forge, and Ramkrishna Forgings as its listed peers. Take a look at their performances:

Company Name Market Capitalisation(Rs.Cr) 1-Year Return
Bharat Forge 39,684 22.09%
Balkrishna Industries 39,669 -5.29%
Ramkrishna Forgings 3,553 18.47%



How to apply for Uniparts India Ltd. IPO?

You can apply for the Uniparts India Ltd. 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 an Uniparts India Ltd. click here.
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Uniparts India Ltd. IPO FAQs

What are the opening and closing dates for Uniparts India IPO?

Uniparts India IPO will open for subscription on November 30 and close on December 2.

What is the price band for Uniparts India IPO?

The price band for Uniparts India IPO is Rs 548 to 577 per share.

Who is taking part in the OFS?

The company’s promoters Karan Soni 2018 CG-NG Nevada Trust, Meher Soni 2018 CG-NG Nevada Trust, Pamela Soni, Ashoka Investment Holdings and Ambadevi Mauritius Holdings will sell shares in the IPO.

What will be the post-issue implied market cap of the company?

The post-issue implied market cap of the company will be Rs 2,473 – 2,604 crore.

What is Uniparts India IPO Minimum and Maximum Lot Size?

Uniparts India IPO lot size is 25 shares and in multiple thereof. A retail-individual investor can opt for up to 13 lots.

What will be the promoter shareholding in Uniparts India after the IPO?

The promoter shareholding in Uniparts India after the IPO will reduce to 65.79% from 75.54%.

Who are Uniparts India IPO Lead Managers?

Axis Capital, DAM Capital and JM Financial are the joint Book Running Lead Managers (BRLMs) to the issue.

Who is the registrar of the issue?

Link Intime India Pvt Ltd. is the registrar for Uniparts India IPO.

When will Uniparts India IPO allotment take place?

The finalisation of the basis of allotment for Uniparts India IPO will be done on December 7, and the allotted shares will be credited to investors’ demat accounts by December 9.

When and where will the Uniparts India shares be listed?

The equity shares of Uniparts India are proposed to be listed on December 12, 2022, on BSE and the National Stock Exchange (NSE).

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