Uniparts India IPO: All You Need To Know
The manufacturer of components for off-highway market will launch its IPO on Nov. 30 at a price band of Rs 548-577 apiece.
Uniparts India Ltd., the manufacturer of systems and components for the off-highway market in agriculture, construction, forestry and mining sector, will launch its initial public issue between Nov. 30 to Dec. 2.
The issue comprises of an offer for sale of 1.44 crore shares by the promoter group and selling shareholders at a price band of Rs 548-577 apiece in the IPO. The size of issue is Rs 835.60 crore.
The promoters and the promoter group will hold 67.10% of the post-offer issued, and paid-up equity share capital. The offer for sale comprises 32.9% of the post-offer equity capital in the IPO.
The company allotted 43.44 lakh shares to anchor investors to raise Rs 250.7 crore a day before the issue opened. The anchor round included Nomura, Morgan Stanley, BNP Paribas, IMCO, Carmignac, Abakkus, Nippon Life, and HDFC Mutual Fund among others.
Duration: Nov. 30-Dec. 2.
Offer for sale: 1.44 crore shares.
Price band: Rs 548-577 per share.
Issue size: Offer for sale of Rs 835.10 crore.
Face value: Rs 10 apiece.
Lot size: 26 shares and multiples.
Listing on: BSE and NSE.
Lead managers: Axis Capital, DAM Capital.
Uniparts India is a global manufacturer of engineered systems and solutions. They are one of the leading suppliers on account of their presence across over 25 countries.
It is a concept-to-supply player for precision products for off-highway vehicles with presence across the value chain. Its product portfolio includes core product verticals of three-point linkage systems and precision machined parts, as well as adjacent product verticals of power take-off, fabrications and hydraulic cylinders or components thereof.
In fiscal 2022, it 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 (construction, forestry and mining) sector in terms of value.
The company gets over 80% revenue from supply to original equipment manufacturers.
It also caters to the aftermarket segment, especially for 3PL product range, and provide replacements to organised aftermarket retailers and distributors in North America, Europe, South Africa and Australia.
Uniparts gets nearly 85-87% of revenue from exports to international markets, and only 13-15% of its revenues are from India.
Use Of Proceeds
The issue is an offer for sale and proceeds will not go to the company.
The company has an Ebitda margin of 22% from operations.
The company does not have any listed industry peers in India, which operate in similar business segments.
Uniparts India depends on a limited number of customers for a significant portion of its revenues. The loss of a major customer or significant reduction in production and sales of, or demand for, products from any of its major customers may adversely affect business, financial condition, results of operations and prospects.
If the company is unable to accurately forecast demand for products, business, cash flows, financial condition, results of operations and prospects may be adversely affected.
Availability and cost of raw materials and labour may adversely affect business, financial condition, results of operations and prospects.
It is exposed to foreign currency exchange rate fluctuations, which may harm results of operations and cause results to fluctuate.
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 business.
Its business is also impacted by tractor production volumes globally.
Its dependence on overseas subsidiaries—Uniparts USA Ltd. and Uniparts Olsen Inc.—exposes the company to significant risks.
Watch | Uniparts India management talks to BQ Prime: