The Rs 835.61 crore IPO by Uniparts India, a global manufacturer of engineered systems and solutions, is all set to open on Wednesday, November 30. The IPO price band has been fixed at Rs 548-577 apiece. Last heard, Uniparts was commanding a grey market premium (GMP) of Rs 131, or 23 per cent, over the upper end of the price limit.
Given the price band, the asking valuation comes in at 14.52-15.29 times FY22 earnings per share. This is against the industry average PE range of 27.36 times. Balkrishna Industries, Bharat Forge and Ramkrishna Forgings are among listed peers of Uniparts India.
The IPO is an offer for sale (OFS) of up to 14,481,942 shares, including 1,100,000 shares by The Karan Soni 2018 CG-NG Nevada Trust; 1,100,000 shares by The Meher Soni 2018 CG-NG Nevada Trust and 2,200,000 shares by Pamela Soni.
Besides, investors such as Ashoka Investment Holdings (7,180,642 shares), Ambadevi Mauritius Holding ( 2,154,192 shares), Andrew Warren Code (177,378 shares); James Norman Hellene (177,378 shares) and Kevin John Code (177,378 shares) are among other selling shareholders.
The offer will constitute 32.09 per cent of the post-offer paid-up equity share capital. The issue will conclude on Friday, December 2. One lot comprises of 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 for qualified institutional buyers is reserved at 50 per cent. For retail investors, it is 35 per cent while the rest 15 per cent quota is reserved for non-institutional investors.
The basis of allotment is likely by Wednesday, December 7, initiation of refunds by December 8, credit of equities by December 9 and market listing by Monday, December 12.
Uniparts India is a supplier of systems and component for the off-highway market in the agriculture and construction, forestry and mining and aftermarket sectors. Its 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) and fabrications
and hydraulic cylinders or components. It also cater to the aftermarket segment especially for 3PL product range. It offers replacements of 3PL parts to organised aftermarket retailers and distributors in North America, Europe, South Africa and Australia.
Uniparts’ RONW stood at 24.35 per cent with Balkrishna Industries’ 20.70 per cent, Bharat Forge’s 16.25 per cent and Ramkrishna Forgings and 18.36 per cent. As per the red herring prospectus, net debt to Ebitda at 0.42 times was lowest against Balkrishna Industries (0.73 time), Bharat Forge (12.9 times) and Ramkrishna Forgings (2.90 times).
Uniparts had highest return on average equity (ROAE) of 26.80 per cent among peers. Balkrishna Industries had ROAE of 22.20 per cent, Bharat Forge 17.84 per cent and Ramkrishna Forgings 20.20 per cent.
