Home / Markets / Ipo /  Uniparts India IPO kicks off. Apply or skip? GMP, key points here

Engineering systems and solutions provider Uniparts India on Tuesday said it has raised 251 crore from anchor investors ahead of its initial public offering (IPO) that has opened for public subscription on Wednesday and concludes on Friday, December 2, 2022. The price band has been fixed in the range of 548-577 a share.

At the end of Day 1, the issue has been subscribed 0.58 times with retail investors category booked 0.77 times and non-institutional investors 0.9 times.

As per market observers, Uniparts India shares are available at a premium (GMP) of 71 in the grey market today. The shares of the company are expected to list on the stock exchanges BSE and NSE on Monday, December 12, 2022.

Uniparts India IPO is entirely an Offer for Sale (OFS) of 14,481,942 equity shares by promoter group entities and existing investors. Since it is entirely an OFS, the company will not receive any proceeds from the public issue. At the upper end of the price band, the public issue is expected to fetch 836 crore.

“Considering the upper limit of the price band and FY22 EPS, Uniparts IPO is valued at a P/E multiple of 15.6x. This is at the lower end when compared to multiples at which the listed peers are trading. Considering the industry growth opportunities, differentiated offerings of Uniparts, expansion of the addressable market and focus on value addition, we recommend ‘SUBSCRIBE'," said KRChoksey.

Uniparts India is a global manufacturer of engineered systems and solutions. It 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 on account of its presence across over 25 countries.

“There are no comparable peers having product profile and business model similar to UIL. The above peers are considered only for benchmarking the demanded valuations. At higher price band, the company is demanding an EV/sales multiple of 2.2x (to its FY22 sales), which seems to be in-line to the peer average. Nevertheless, UIL has better profitability and return ratios compared to the peer average. However considering the global policy tailwinds, we feel the company has adequate levers to expand its business at higher rates. Thus, we assign a “SUBSCRIBE" rating for the issue," said Choice Broking.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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