Uniparts India IPO: GMP, subscription status on day 2 of the issue

Since Uniparts India IPO is entirely an OFS, the company will not receive any proceeds from the issue

The initial public offer (IPO) of engineering systems and solutions provider Uniparts India received 58% subscription on the first day of the offering on Wednesday. The issue, with a price band in the range of ₹548-577 a share, concludes on Friday, December 2, 2022. The engineering systems and solutions provider raised ₹251 crore from anchor investors ahead of its initial share sale.

As per market observers, Uniparts India shares are available at a premium (GMP) of ₹68 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 of up to 14,481,942 equity shares. At the upper end of the price band, the IPO is expected to fetch ₹836 crore. Since the offer is entirely an Offer for Sale (OFS), the company will not receive any proceeds from the public issue.

“Uniparts India is manufacturer of engineered systems and solutions and leading supplier of of components for the off highway market in agriculture and construction. International sales contributed to over 82% sales in FY22. Revenues and margins grew steadily in past three fiscal years. At the upper band of the offer, the implied market cap stands at approx. ₹2,604 crore and the asking p/e multiple is 15.28x which looks quite reasonable as compared to its peers. The secondary market being at all-time highs should help the issue getting good response," said Abhay Doshi, co-founder of UnlistedArena.

Uniparts India Limited was incorporated on September 26, 1994 and 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.

It is a concept-to-supply player of precision products for off-highway vehicles with presence across the value chain. The company's product portfolio includes core product verticals of 3-point linkage systems and precision machined parts as well as adjacent product verticals of power take off, fabrications and hydraulic cylinders or components thereof.

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