Uniparts India shares make muted debut amid weakness in broader market

Uniparts India witnessed a subdued listing on Monday, tracking broader sluggish market sentiment. The stock opened at a slight discount on exchanges BSE and NSE compared to its upper price band of the IPO. Uniparts shares received strong demand in its IPO which was open from November 30 to December 2nd.

On both BSE and NSE, Uniparts listed at ₹575 per equity share -- which is at a discount of ₹2 or 0.35% from the IPO's upper price band of ₹577 per share.

On BSE, at around 10.12 am, the stock traded at ₹552.20 apiece down by ₹22.80 or 3.97% from the listing price. However, the stock dipped by 4.30% from the IPO price band. The company's market valuation is around ₹2,477 crore currently. 

The equity shares of Uniparts India are listed and admitted for dealings on BSE in the ''B'' group securities.

Meanwhile, on NSE, the stock traded at ₹548.05 apiece lower by 5.02% from the IPO price band. 

What should investors do? 

Talking about Uniparts listing, Santosh Meena, Head of Research, Swastika Investmart said: “The issue had received a good response from investors on both the institutional and retail sides. The company’s major business areas are agriculture, construction, forestry, and after-market. The company has a leading market presence, a global business model, and long-term relationships with key customers.”

Further, Swastika's research head highlighted that Uniparts also enjoys a healthy financial position with continuous growth in revenue and profit and improving margins. “As for the risk factors, the issue is a complete offer for sale. However, the issue is attractively priced at a P/E valuation of 15.61, which is lower than its listed peers,” he said.

Hence, Meena added, "allottees who applied for the public offering for listing premium are advised to maintain their stop loss at 535."

Uniparts India IPO details: 

Uniparts India launched its ₹836 crore IPO from November 30th to December 2nd. The IPO was oversubscribed by 25.32 times. Qualified institutional buyers (QIBs) showed strong demand for the IPO as the portion reserved for this category oversubscribed by 67.14 times, while the non-institutional investors (NII) category subscribed by 17.86 times. Meanwhile, the retail investors' category witnessed a subscription of 4.63 times against their offered size.

The company had set a price band of ₹548 per equity share and ₹577 per equity share for the IPO.

Uniparts 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 the agriculture and construction, forestry and mining, and aftermarket sectors on account of our presence across over 25 countries. The company has a leading presence in the manufacture of 3PL and PMP products globally.

In the fiscal that ended March 31, 2022 (FY22), the company had an estimated 16.68% market share of the global 3PL market in terms of value and an estimated 5.92% market share in the global PMP market in the CFM sector in terms of value.

Currently, the company has six manufacturing facilities -- five in India and one in the USA.

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