The shares of the company listed at a discount of nearly 0.4 percent to the issue price on the stock exchanges BSE and NSE. The Rs 836 crore entirely OFS IPO was open for subscription from November 30 till December 2.
The engineering systems and solutions provider Uniparts India made a weak debut on the stock exchanges BSE and NSE on Monday. On BSE, Uniparts India listed at Rs 575 apiece against the issue price of Rs 548 - Rs 577 . The stock started its trading journey at Rs 575 apiece on NSE — a nearly 0.4 percent discount to the issue price.
Uniparts India's IPO, to raise up to Rs 836 crore, was open for subscription from November 30 till December 2 with a subscription of 25.32 times. The qualified institutional buyer (QIB) portion was subscribed by a huge 67.14 times. The portion reserved for non-institutional investors was subscribed 17.86 times, while the retail portion was subscribed 4.63 times.
The entire issue was an Offer for Sale (OFS), where Ashoka Investment Holdings and Ambadevi Mauritius Holdings were to sell their stake. Both these entities together held a 20.68 percent stake in the company currently. An Offer for Sale (OFS) means that the company will not receive any proceeds from the sale of shares.
In an interaction with CNBC-TV18, Uniparts India Chairman and MD Gurdeep Soni said that the company is not in need of any fresh cash and the IPO is an exit for private equity investors.
Talking to CNBC-TV18 post the listing, Soni said that the promoter group was allotted shares as per the ESOP plan. “We have an ESOP plan and the ESOP plan was set up several years ago, the shares were issued at Rs 52.5 to the key management people. This was done many years ago. Jaswinder Singh Bhogal had shares at that particular price and some of the shareholders exercise the right to apply for the shares depending on the longevity of their tenure with the company and Bhogal and in fact, some other shareholders even before him, exercise the rights. And that is the reason they got it at that particular price.”
Ahead of the IPO, Uniparts India had raised Rs 250.69 crore from 21 anchor investors, who subscribed to the company’s shares at Rs 577 apiece. Anchor investors included Nomura, Morgan Stanley, BNP Paribas, Invesco, and Abbakus.
Uniparts India is a global manufacturer of engineered systems and solutions and is one of the leading supplier of systems and components for the off-highway market in the agriculture and construction, forestry, and mining segments. The company is present in over 25 countries.
The company's RHP says that it had a 16.68 percent market share in the global 3 PL market and a 5.92 percent market share in the global PMP market. Uniparts India's revenue is diversified across geographies and only 13.4 percent of its revenue in financial year 2022 came from the Indian market. The US contributed to nearly half of the company's total topline.
Uniparts India has five manufacturing facilities in the country, including two in Ludhiana, one at Visakhapatnam, and two in Noida. In the US, the company has a manufacturing, warehousing, and distribution facility in Iowa, which it acquired post its acquisition of Olsen Engineering in 2005. It also has a warehousing and distribution facility in Germany, which is a base for their key European customers.
Soni said that the China+1 strategy is working in the company's favour. “We expect growth to continue at a fairly good pace because of the China+1, while the industry will grow at its 7-8 percent growth that has been talked about by CRISIL." He added that China+1 is playing out well for India and for Uniparts in particular. "We are getting a lot more business opportunities actually coming and executing orders because of the shift of business from China to India.”