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Uniparts India Shares List at a Discount to IPO Price; Should You Buy, Sell or Hold?

Uniparts India Stock Price: Uniparts India made a muted debut on Monday, December 12, listing Rs 575 on BSE, a discount of 0.35 per cent from the issue price of Rs 577 each. The tech systems and solutions provider debuted at a discount of 0.35 percent at Rs 575x to the given issue price on the National Stock Exchange (NSE).

The company had set a price range of Rs 548-577 per share for its initial public offering (IPO).

Uniparts India’s IPO, to raise up to Rs 836 crore, was open for subscription from Nov 30 to Dec 2 with a subscription of 25.32 times.

The whole matter was an Offer for Sale (OFS), whereby Ashoka Investment Holdings and Ambadevi Mauritius Holdings would sell their stake. Both entities currently jointly hold a 20.68 percent stake in the company. An Offer for Sale (OFS) means that the company receives no proceeds from the sale of shares.

Prior to the IPO, Uniparts India had raised Rs 250.69 crore from 21 anchor investors, who subscribed the shares of the company for Rs 577 each. Anchor investors included Nomura, Morgan Stanley, BNP Paribas, Invesco and Abbakus.

The issue included only offered for sale (OFS). The OFS included the sale of 1,44,81,942 shares by selling shareholders, ie promoter selling shareholders (44,00,000 shares), investors selling shareholders (93,34,834 shares), and individual selling shareholders (7,47,108 shares). .

With increased post-issuance equity, the interest of both selling shareholders of the promoter group will fall to 13.81 percent each from 17.51 ​​percent each before issuance and that of Pamela Soni fell to 2.69 percent from 10.10 percent before issue. The interest of both investor-selling shareholders will be nil after the issue.

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The objectives of the offer were to gain the benefit of listing the shares on the stock exchanges and to provide an exit option, particularly to selling shareholders, promoters and some individual selling shareholders.

Uniparts India is a global manufacturer of engineering 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 sectors. The company is present in more than 25 countries.

One of the company’s main products is the 3PL, a system consisting of several parts that are attached to an agricultural tractor. For fiscal year 2022, 3PL contributed more than half of the company’s total revenue. Uniparts expects the global market for 3PL, worth $370 million in 2021, to grow by 6 to 8 percent between 2021 and 2026.

PMP is another important product from the company’s stable that are structural and load-bearing parts of the equipment varying in design and technical specifications.

What should investors do?

Ravi Singhal, CEO of GCL: “Due to market conditions, the share is below the issue price. On the other hand, stocks seem to be good long-term investments; keep stop loss at Rs 525 and target price Rs 666.”

disclaimer:Disclaimer: The opinions and investment tips of experts in this report are their own and not those of the website or its management. Users are advised to contact certified experts before making investment decisions.

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