Uniparts India Limited is a manufacturer of engineered systems and solutions. The company has filed its DRHP for Initial Public Offering (IPO) OFS and the issue is going to open from 30th November till 2nd December.
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About the Company:
Uniparts India Limited is a manufacturer of engineered systems and solutions and started its operations in 1994. The company is one of the leading suppliers of systems and components for the off-highway market in the agriculture and construction, forestry and mining (“CFM”), and aftermarket sectors with a presence across over 25 countries.
In India, the company has five manufacturing facilities, two at Ludhiana, Punjab, one at Visakhapatnam, Andhra Pradesh, and two at Noida, Uttar Pradesh. Uniparts also have a manufacturing, warehousing, and distribution facility at Eldridge, Iowa, acquired under the acquisition in 2005 of Olsen Engineering LLC, now known as Uniparts Olsen Inc. (“UOI”), and a warehousing and distribution facility at Augusta, Georgia. (Source: CRISIL Report)
Any History of IPO:
Uniparts India Ltd. was trying to launch its maiden IPO since 2014. It filed its first DRHP in September 2014, for an issue of 13040000 shares including a fresh equity issue of 7000000 and the balance by way of OFS. But it did not come with a public issue and preferred to drop the IPO.
After that, it filed DRHP again in December 2018 for a fresh equity issue worth Rs. 100 cr. and an OFS for 13060770 shares but this time also the issue was not completed. And then, this year, the company filed a fresh DRHP in April 2022 for an OFS of 15731942 shares, and now based on RHP, it is finally going for an issue of 14481942 shares by way of OFS (Offer for Sale) and has thus reduced the issue size.
Key Details of Uniparts India Limited IPO
This particular public issue worth ₹835.61 crores will open for bidding on 30th November 2022 and it will remain open for bidding till 2nd December 2022. The price band of the public offer has been fixed at ₹548 to ₹577 per equity share. The manufacturer of engineered systems and solutions aims to raise ₹835.61 crores from its offer.
The finalization of share allocation is expected on 7th December 2022. One lot comprises 25 shares and retail investors can buy a maximum of 13 lots of 325 shares worth Rs 1,87,525 at the upper end of the price band. The quota of shares for Qualified Institutional Buyers (QIB) is reserved at 50 percent. For Retail Investors, it is 35 percent while the rest 15 percent quota is reserved for Non-Institutional Investors (NII).
| Price Band of the Issue | ₹548 to ₹577 |
| Existing Shares (Qty) |
4.51 Crore |
| Market Cap of the Company |
2602.27 Crore |
| Earning Per Share for FY21 |
37.74 Rupees |
| PE Ratio of Company |
15.28 |
| Industry PE |
27.26 |
As per the offer documents, UIL company has shown Balkrishna Ind., Bharat Forge, and Ramkrishna Forgings as their listed peers. They are currently trading at a P/E of 27.49, 37.89, and 14.55. That means UIL is trading at a P/E ratio of 15.28 which is less as compared to its peers and industrial P/E of 27.26. Also, the company has paid a dividend of 33% during the year 21 and 92% during the year 2022.
Key Strength of Uniparts India Limited
- The company’s product portfolio includes core product verticals of 3-point linkage systems (“3PL“) and precision machined parts (“PMP“) as well as adjacent product verticals of power take-off (“PTO”), fabrications, and hydraulic cylinders or components.
- Uniparts is a concept-to-supply player for precision products for off-highway vehicles (“OHVs”) with a presence across the value chain.
- UIL has an estimated 16.68% market share of the global 3PL market in Fiscal 2022 in terms of value and an estimated 5.92% market share in the global PMP market in the CFM sector in Fiscal 2022 in terms of value.
- It also caters to the aftermarket segment, especially for the 3PL product range. The company provides replacements of 3PL parts to organized aftermarket retailers and distributors in North America, Europe, South Africa, and Australia.
- Position of market leadership in the worldwide area of the off-road vehicle systems and components market
- A precise solutions supplier that is engineering-driven and vertically integrated.
- The global business approach aims to minimize risks associated with client supply chains and maximize cost competitiveness.
- Long-term ties with significant clients worldwide, including OEMs, have led to a well-diversified revenue base.
- Facilities for production and storage that are situated in advantageous locations and provide both size and flexibility.
- The promoter of the Company has 75% shareholding with 0% share pledging which is a positive sign for an investor.
Purpose of Uniparts India Limited IPO?
The company (Uniparts India Limited) will not receive any proceeds from the Offer and all such proceeds will go to the Selling Shareholders.
Financials of Uniparts India Limited:
| Period | Net Worth | Total Asset | Borrowings | Revenue | Profit After Tax (PAT) |
| 2018-2019 | 421.98 | 958.44 | 345.63 | 1062.48 | 69.6 |
| 2019-2020 | 464.16 | 898.75 | 256.5 | 938.84 | 62.64 |
| 2020-2021 | 560.14 | 893.27 | 127.78 | 947.69 | 93.15 |
| 2021-2022 | 685.24 | 1031.18 | 127.27 | 1231.04 | 166.89 |
*All values are in Crores
Apply or not for this Issue?
- Since Company has shown a consistent decrease in the borrowing part which is a positive sign
- There is an increase in Net worth which is a good sign
- Continuous Increase in the Profit After Tax (PAT) which is also a positive sign
- The promoter of the Company has 75% shareholding with 0% share pledging which is a positive sign for an investor.
- The company will not receive any funds from this IPO and all will go to the Selling Shareholders, which means no profit to the company from this IPO In a way. So, it can be a cause of concern for fresh investors.
The company has shown consistent growth and reduction in its borrowings which in turn is good for the future of the company and for its investors. Hence, you may apply for this IPO issue but it is not a recommendation and you must research on your own before investing.
Uniparts India IPO Registrar:
Link Intime India Private Ltd has been appointed as the official registrar of Uniparts India IPO.
Link Intime India Pvt. Ltd,
C 101, 247 Park, L.B.S.Marg, Vikhroli (West), Mumbai – 400083.
Public Issue-Shares and Bonds (Allotment) : (0) 8108114949
Fax: 022 – 4918 6060
Toll-free number: 1800 1020 878
Monday – Friday 10:00 AM – 4:00 PM
Uniparts India IPO listing: The public issue is proposed for listing on BSE and NSE.
Disclaimer:
The data, views, and recommendations made above are those of individual analysts, available freely on the internet or of broking companies, and not of financefetch. We advise our readers and investors to check with certified experts and by themselves before making any investment decisions on this Issue.