Uniparts India IPO Details and Review – Is the IPO attractively priced?

Noida based Uniparts India is coming up with an IPO that would open for subscription on 28th November, 2022.  Uniparts India Ltd is a manufacturer of engineered systems and solutions in India. Company had strong revenue and margin growth in the last 3 years. Should you invest in Uniparts India IPO? This article would provide IPO details, Dates, GMP, Listing Date and conclusion on whether this is good or bad for investment.

Also Read: Dharmaj Crop Guard IPO – Should you invest or avoid?

About Uniparts India Limited

Company is a manufacturer of engineered systems and solutions in India.

It is one of the leading suppliers of systems and components for the off-highway market in the agriculture and construction, forestry and mining and aftermarket sectors with the presence across over 25 countries.

Its product portfolio includes core product verticals of 3-point linkage systems and precision machined parts as well as adjacent product verticals of power take-off, fabrications and hydraulic cylinders or components. Uniparts is a concept-to-supply player for precision products for off-highway vehicles with a presence across the value chain

Company have 5 manufacturing facilities of which 2 are at Ludhiana(Punjab), 1 at Visakhapatnam(Andhra Pradesh) and 2 at Noida(Uttar Pradesh).

It also have a manufacturing, warehousing and distribution facility at Eldridge, Iowa, acquired under the acquisition in 2005 and a warehousing and distribution facility at Augusta, Georgia.

Uniparts India IPO Details, GMP, Size, Dates and Review

Uniparts India IPO Details

IPO Opening Date 30-Nov-22
IPO Closing Date 02-Dec-22
Issue Type Book Built Issue IPO
Face Value Rs 10 per equity share
IPO Price band Rs 548 to Rs 577 per equity share
Lot Size 25 Shares
Min Order Quantity 25 Shares
Listing at BSE and NSE
Total Issue Size Rs. 835.61 Crores

Uniparts India IPO RHP

What are the strengths of Uniparts India Limited?

1) It has a leading market presence in global off-highway vehicle systems and components segment

2) Company with engineering driven, vertically integrated precision solutions provider

3) The company has a global business model optimizing cost-competitiveness and customer supply chain risks

4) It has long-term relationships with key global customers, including major original equipment manufacturers, resulting in a well-diversified revenue base

5) Company is strategically located manufacturing and warehousing facilities that offer scale and flexibility

6) It has a healthy financial position with robust financial performance metrics

7) It has experienced promoters and qualified senior management team

What are the Objects of the IPO Offer?

Uniparts India IPO Size is Rs 835.61 Crores which entirely OFS. Under OFS, selling shareholders would sell their shares and the company would not get any money from this IPO proceeds. Beyond this, company would get listing benefits.

Who are the promoters of Uniparts India Limited?

Gurdeep Soni and Paramjit Singh Soni are the promoters of the company.

How is the company financial track record?

Here are the total assets, revenues and profits of the company in the last 3 years and 3 months.

Financial Year ending / Period ending (Amt in Crores)
Particulars FY20 FY21 FY22 30-Jun-22
Total Assets 898.8 893.3 1,031.2 1,063.5
Revenues 938.8 947.7 1,231.0 347.8
Profit After Tax 62.6 93.2 166.9 50.5
Profit % 6.67% 9.83% 13.56% 14.53%

Why to invest in Uniparts India IPO?

Here are the positive factors in this company.

1) Uniparts India Ltd is the manufacturer of engineered systems and solutions. It has a leading market presence in global off-highway systems and components segment.

2) Company had strong revenue growth in the last 3 years.

3) Company had strong margin growth in the last 3 years and these margins are improving year on year.

4) Company EPS is increasing year on year.

Risk Factors of investing in Uniparts India IPO

1) Company IPO proceeds is entire Offer for Sale (OFS). Such IPO proceeds would go to selling shareholders and company would not get benefitted from this except for listing gains.

2) Company depends on a limited number of customers for a significant portion of its revenues. Any loss of a major customer can have an impact on the business.

3) Company 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 the business.

4) Company has overseas subsidiaries Uniparts USA Limited and Uniparts Olsen Inc., which might expose them to significant risks.

5) Company has certain open bills in the Export Data Processing and Monitoring System of the Reserve Bank of India.

6) Company has compounded delayed filing of certain records with the Reserve Bank of India in the past.

7) It has sustained negative cash flows from operations in the past. Any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect business.

8) Investors should read complete risk factors indicated in the RHP of the IPO document before investing in this IPO.

IPO of Uniparts India Valuation

Uniparts India IPO price band is Rs 548 to 577 per share.

If we consider FY2022 EPS of Rs 36.98, the P/E ratio works out to be 16x.

If we consider last 3 years weighted EPS of Rs 27.68, the P/E ratio works out to be 21x.

If we annualize Q1FY23 EPS, the P/E ratio works out to be 13x.

Means company is asking for the issue price in P/E of 13x to 21x. There are listed peers like Bharat Forge trading at P/E 37x (Highest) and Ramakrishna Forgings trading at P/E 19x (Lowest). Hence Uniparts India Ltd share price is attractively priced.

Dilip Davda, a veteran journalist also believes that Uniparts IPO Price is reasonably priced.

Uniparts India dates – subscription, Allotment and Listing

Offer Open 30-Nov-22
Offer close 02-Dec-22
Finalization of Allotment 07-Dec-22
Initiation of Refunds 08-Dec-22
Credit to Demat Account 09-Dec-22
IPO Shares Listing Date 12-Dec-22

How to buy Uniparts India IPO online through Zerodha?

If you do not have Zerodha account, sign-up here and proceed to the next step.

If you have a demat account with Zerodha, you can apply this IPO online using the UPI as a payment gateway. Zerodha customers can apply in this IPO by login into Zerodha Console submitting an IPO application form.

Follow below steps to apply this IPO in Zerodha platform:

1) Visit the Zerodha portal and login to the console.

2) Go to Portfolio and click the IPOs link.

3) Visit ‘Uniparts India Limited IPO’ row and click the ‘Bid’ button.

4) Enter your UPI ID, Qty and the Price which you want to bid.

5) Click on ‘Submit’ IPO application form.

6) Visit the UPI App (net banking or BHIM) to approve the mandate.

FAQS on Uniparts IPO

What is Uniparts india ltd ipo date?

Uniparts IPO opens on 30th November and closes on 2nd December, 2022.

What is Uniparts India IPO GMP?

GMP is nothing but the premium at which the shares are trading in offline market. This is just an indication about the IPO price as it is unorganized market. Uniparts India GMP today as per market observers is ranging between Rs 148 to Rs 150. Uniparts India IPO GMP IPOWatch – Rs 150 Uniparts India IPO GMP Chanakya – Rs 148 Uniparts India GMP as per IPOCentral – Nil Uniparts India IPO GMP IPO Bazar – Nil

What is Uniparts IPO size?

Uniparts India IPO Size is Rs 835.61 Crores which is entirely OFS. Under OFS, the IPO proceeds would go to selling shareholders and company would not get anything.

Also Read: This ETF has generated positive returns for 9 out of 10 calendar years

Uniparts India IPO Review – Should you invest?

After going through all these points, you might be wondering whether you should invest in Uniparts India IPO or avoid?

Uniparts India Limited is a manufacturer of engineered systems and solutions and leading suppliers of systems and components of the off highway market in the agriculture and construction segments. Company had generated strong revenue growth in the last 3 years. Its margins are improving year on year. The issue price is attractively priced.

Subscribe to the IPOOn the other side, the IPO proceeds would go to selling shareholders and company would not get benefitted. Company has other internal and external risk factors which investors need to understand.

Considering positive and negative factors, investors can subscribe to this IPO for medium to long term perspective.

Did you like our IPO Analysis, then share it with your friends on WhatsApp, FB, Twitter and Telegram?

Suresh KP

7 comments

  • Sumit

    Didn’t get allotment of this IPO also.
    Have applied for all IPOs which you recommended but zero score in allotment this year (except LIC)

  • Nanmith

    Hi Suresh

    Which IDCW fund is best ?
    And which IDCW fund can give monthly returns of 40K and for this how much will be the investment amount ? 50 lakhs ?

    • Looks someone already similar question. Instead of going with IDCW funds, you can invest in a simple balanced advantage direct plan and put SWP (sytematic withdrawal plan) of 40K per month. If we consider 8% to 10% returns (balanced funds can generate in this range or little higher in bull runs), you would need Rs 60 Lacs (8% can generate 4.8 Lacs per annum or Rs 40K per month)

      • Nanmith

        Thanks brother. But in bear markets these balanced funds also may not generate 8-10%, right ?
        And which fund in current time we can invest lumpsum to generate 40K per month ?

  • Vijay

    Hi Brother

    Can hdfc balanced fund idcw or any other better idcw fund can give 40k div payout every month ?
    If yes how much will the total amount need to be invested in that fund ? 90 lakhs ?
    We und idcw funds give less returns on cagr basis but if it can give monthly div payout then its good diversification strategy ?
    Your thoughts on above pla

    • Vijay, Dividends would be declared at the discretion of the fund manager. If you really need 40K, just invest in couple of balanced funds and do SWP (Systematic Withdrawal Plan) of 40K per month or Rs 4.8 Lacs per annum. In this case, even if you assume 8% to 10% returns, you need to invest max of Rs 60 Lacs which can fetch you 4.8 Lacs with 8% returns.

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