BackUniparts India IPO: GMP rises ahead of subscription opening. Subscribe?
The public subscription period for Uniparts India's ₹836 crore initial public offering (IPO) will begin on Wednesday, November 30, 2022, and end on Friday, December 2, 2022.
PremiumThe public subscription period for Uniparts India's ₹836 crore initial public offering (IPO) will begin on Wednesday, November 30, 2022, and end on Friday, December 2, 2022. Uniparts India is a provider of engineering systems and solutions. The IPO is fully an offer for sale (OFS) of 14,481,942 equity shares by promoter group companies and existing investors. The company has set the IPO price band at ₹548-577 per share.
Market watchers report that shares of Uniparts India are currently available on the grey market for a premium (GMP) of ₹80. Considering that the price band for the Uniparts India IPO is 577, the anticipated listing price is 657 ( ₹577 + ₹80), and the anticipated gain per share in terms of percentage is thus 13.86%. On Monday, Uniparts India shares were available at a premium (GMP) of ₹140 in the grey market which had reflected an estimated listing price of ₹717 which was 24.26% higher than the IPO's upper band price of ₹577 per equity share. The lowest GMP is recorded at ₹0 on 24th November while the highest GMP is ₹140 recorded on 28th November.
Uniparts India IPO Activity
IPO Open Date: 30-11-2022
IPO Close Date: 02-12-2022
Basis of Allotment Finalisation Date: 07-12-2022
Refunds Initiation: 08-12-2022
Credit of Shares to Demat Account: 09-12-2022
IPO Listing Date: 12-12-2022
The Uniparts India IPO GMP records a minimum subscription of 1 lot equals 25 shares amounting to ₹14,425 while the maximum lot size is 325 shares or 13 lots worth ₹187,525.
Mr. Swapnil Shah - Head of Research at Stoxbox said “The global market for 3PL systems (~56% of FY2022 revenues) is expected to grow at a CAGR of 6% - 8% through CY2026, aided by strong global tractor production volumes. With India accounting for about 50% of the global tractor production, we believe that Uniparts India is in a sweet spot to leverage this opportunity going forward. Additionally, multiple business drivers such as fully integrated engineering solutions, long-term relationships with OEMs, the strategic location of manufacturing and warehousing facilities, global footprint, and geographically diversified revenues should provide further tailwinds to the business. However, an unexpected slowdown in tractor production due to economic headwinds and the company’s high dependency on its top customers for revenues continue to remain key risks. On the upper end of the price band, the issue is valued at a P/E of around 15.1x which we feel is fairly valued, given the fact that the company has healthy RoCE and RoAE ratios (31% and 26.8%, respectively for FY2022) along with low debt. We, therefore, recommend “SUBSCRIBE" to the IPO."
An international producer of engineered systems and solutions, Uniparts is situated in India. The company, which works out of six production sites and four warehouse locations in the US, Europe, and India with its products spanning across 25 nations, is a leading provider of systems and components for the off-highway sector.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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