Uniparts India IPO: GMP steady ahead of subscription opening this week

Engineering systems and solutions provider Uniparts India on Friday said it has set a price band of ₹548-577 a share for its ₹836-crore initial public offering (IPO). The three-day initial share sale will open for public subscription on November 30 and conclude on December 2. The bidding for anchor investors will open on November 29.

Uniparts India IPO is entirely an Offer for Sale (OFS) of 14,481,942 equity shares by promoter group entities and existing investors. Since the IPO would be entirely an OFS, the company will not receive any proceeds from the public issue. At the upper end of the price band, the public issue is expected to fetch ₹836 crore.

UniParts listed peers included Balkrishna Industries, Bharat Forge and Ramkrishna Forgings. UniParts’ offer will constitute 32.09% of the post-offer paid-up equity share capital. The issue will conclude on Friday, December 2

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