Uniparts India Limited IPO

Uniparts India Limited IPO – Do you invest? – Know the company before investing

Uniparts India Limited IPO

Uniparts India Limited IPO – The company filed DRHP for IPO with market regulator SEBI on April 25, 2022.  The company is coming up with an offer for sale (OFS) only. Promoters and investors are selling their stake in the offer. Uniparts India will sell up to 14,481,942 Equity Shares as OFS at a face value of INR 10 each. Considering the face value, the total IPO size will be INR 835.61 Cr. But the actual price of each equity share is not yet announced. This is the third time that the company has attempted to list the exchanges. Uniparts India filed DRHP twice before, once in 2014 and again in 2018 before it filed in 2022.

The company was incorporated as “Uniparts India Limited” dated September 26, 1994, and the company started business operation on September 7, 1998. The registered and corporate office of Uniparts India Limited’ is – Gripwel House, Block – 5, Sector C 6 & 7, Vasant Kunj, New Delhi 110 070, India.

  • Uniparts India manufacturer of engineered systems and solutions.
    • The Group is one of the leading suppliers of systems and components for the off-highway market.
    • Off-highway vehicle components include complete assemblies of precision-engineered products and end-to-end solutions ranging from product conceptualization to delivery.
    • The company operates 6 manufacturing, 3 warehousing locations, and 1 distribution center across 3 continents.
    • Uniparts India products are reaching over 25 countries worldwide.
    • The company operates in three end market segments – Agriculture, Construction Forestry and Mining (CFM), and Aftermarket.

Uniparts India Limited Products: Focuses on off-highway vehicle (OHV) components

The company focuses on off-highway vehicle (OHV) components. The company’s products categorized by end-users are as follows.

  • The company serves both OEMs and after-market in the agriculture segment includes
    • 3-Point Linkage System
    • Assemblies
    • Precision Machined Parts (PMP)
    • Power take-off (PTO) components
    • Forgings as well as Hydraulic Cylinder Solutions
  • CFM segment includes precision machined parts (PMP) and Hydraulic Cylinder Solutions for the mobile equipment market and the construction market.
  • The company is also a leading service provider in the after-market of US and European countries.

Uniparts India Limited Promoters and Leadership team

The company is run by experienced Promoters and a qualified senior management team with significant experience in the business.

Mr. Gurdeep Soni is the Promoter, Chairman, and Managing Director of the company since its incorporation.  He holds 8,995,090 Equity Shares which represents 19.93% of the issued, subscribed, and paid-up Equity Share capital of the Company. Mr. Gurdeep Soni holds a master’s degree in management studies from the Birla Institute of Technology and Science, Pilani. He has 42 years of work experience, which includes 27 years within the Uniparts Group.

Mr. Paramjit Singh Soni is one of the Promoters of the company. He also is the Executive Director and Vice Chairman of the company. Paramjit Singh Soni holds 200,000 Equity Shares which represents 0.44% of the issued, subscribed, and paid-up Equity Share capital of our Company. He has 40 years of work experience including 27 years of experience as a Director of Uniparts India. Currently, he is based in the USA.

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Uniparts India Limited Revenue and profits

The total income for the nine months ended December 31, 2021, is INR 8,841.89 Crores. The company’s income has declined from INR 10,624.78 Crores in FY 2019 to INR 9,476.89 Crores in FY 2021. Total income for the full year of FY 2022 may be higher than the previous years.   

However, the profit has grown from INR 695.97 Crores in FY 2019 to INR 923.86 Crores in FY 2021. The net profit of the company will be higher in FY 2022. By December 2021, the company recorded a net profit of INR 1223.36 Crores.

Uniparts India Limited IPO – Valuation Parameters

Uniparts India Limited has registered a strong debt-equity ratio and declining over the years. The Net cash flow from operating activities has increased over the years. Other parameters such as the return on equity, ROCE, and EPS are looking strong.  The AUTHORISED equity share capital of the company was INR 6,00,00,000 by 31st March 2021.

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Uniparts India Limited IPOFinancial Parameters of the company

All amounts in INR Million except percentages
(Year ended March 31)
201920202021
Revenue from Operations10,605.66 9,072.209,031.42
Total Income10,624.789,388.389,476.89
Profit After Tax for the Year695.97626.42923.86
EBITDA1,398.481,278.101,639.26
EBITDA Margin13.19%14.09%18.15%
Return on Equity17.68% 14.14%18.05%
Return on Capital Employed15.37% 13.98%19.81%
Net Debt / Equity0.780.520.21
Earnings Per Share-Diluted (in INR)15.4213.8820.47
Net Cash from Operating Activities-56.511330.671,527.55

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Uniparts IPO: Do you invest? 6 factors to know

  • The company has been in operation for more than three decades off-highway vehicle components. However, ROE and ROCE are not above 20%.
  • Revenue from the top 10 customers across product segments and geographies was about 73% of the total revenue from operations in FY 2021. Any loss of a major customer will significantly affect its business.
  • Huge competition from the listed players for the products of the company in the Indian market.
  • JCB India is the leader in the backhoe loader segment, commanding approximately 60% market share.
  • Tata Hitachi and L&T Construction Equipment are major players in the excavator space having technology collaborations with Japanese companies Hitachi and Komatsu.
  • The off-highway vehicle business is seasonal in nature.
  • Promoters tried to bring IPO two times before this offer but were postponed.
  • This is completely an offer for sale (OFS) where promoters and investors are selling their stakes. The company will not receive any amount from the net proceeds.
  • With this, I would prefer not to invest in the company while I have other opportunities available in the market.

Uniparts IPO Details

Uniparts IPO DetailsDetails Date and Price
Uniparts India Limited IPO Subscription Date30-Nov-2022 to 2-Dec-2022
Uniparts India Limited IPO Price band₹548 to ₹577 per share
Uniparts India Limited IPO Allotment dateDec 7, 2022
Refunds Initiation dateDec 8, 2022
Credit of Shares to Demat AccountDec 9, 2022
Listing DateDec 12, 2022
Fresh IssueNil
Offer for Sale14,481,942 shares of ₹10
(aggregating up to ₹835.61 Cr)
Equity Shares outstanding prior to the Offer45,133,758 Equity Shares
Equity Shares outstanding after the Offer45,133,758 Equity Shares
Minimum bid for
Retail Investor (lot size)                                                     
1 lot of 25 Shares
(Minimum Retail Investment ₹14,425)
Minimum bid for
Retail Investor (lot size)   
13 lot of 325 Shares
(Minimum Retail Investment₹187,525
Face ValueINR 10 per share
Listing on BSE & NSE

Uniparts IPO allotment status

Uniparts IPO allotment status will be available on  Link intime Limited website. To know your allotment status, get ready with your PAN number and click on this link. You may also reach out to E-mail: uniparts.ipo@linkintime.co.in, +91 22 4918 6000,

Uniparts IPO GMP

Looking at the business, Uniparts IPO GMP is expected to go up. The tentative listing price of the share may be INR 657 based on the Uniparts IPO GMP at present.

DateUniparts IPO GMPUpper IPO PriceTentative Listing Price
29-11-2022INR 80INR 577INR 657

Uniparts India Limited IPO Lead managers and Company Contacts

Contact DetailsLead Managers
1st Floor, B208, A1 & A2,
Phase-II, Noida 201 305,
Uttar Pradesh, India
91 120 458 1400
compliance.officer@unipartsgroup.com
www.unipartsgroup.com
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