Uniparts India IPO’s price band fixed, issue opens next week

Uniparts India’s IPO is entirely an Offer for Sale (OFS) of 14,481,942 equity shares by promoter group entities and existing investors. The company will not receive any proceeds from the public issue as the offer is entirely an OFS.

Currently, the promoters collectively hold 9,195,090 equity shares, representing 20.37% of the pre-offer issued, subscribed and paid-up equity share capital of the company.

Karan Soni 2018 CG-NG Nevada Trust, Meher Soni 2018 CG-NG Nevada Trust, Pamela Soni, and investors Ashoka Investment Holdings Ltd and Ambadevi Mauritius Holding Ltd are the promoter group entities that are offering shares in the OFS.

Uniparts India Limited was incorporated on September 26, 1994. Uniparts is a global manufacturer of engineered systems and solutions, and it is one of the leading suppliers of systems and components for the off-highway market in the agriculture and construction, forestry and mining (CFM) and aftermarket sectors on account of their presence across over 25 countries. In Fiscal 2022, the company’s customer base comprised over 125 customers in over 25 countries globally.

Uniparts had an estimated 16.68% market share of the global 3PL market in Fiscal 2022 in terms of value and an estimated 5.92% market share in the global PMP market in the CFM sector in Fiscal 2022 in terms of value.

“Over the years, the company has evolved from a component supplier to a provider of complete assemblies of precision engineered products and end-to-end solutions ranging from product conceptualization, design, prototyping, testing, development and assembly to customized packaging and delivery, becoming an integral part of certain of their customers’ global supply chains,” said Axis Capital in a note.

In India, Uniparts has 5 manufacturing facilities, 2 at Ludhiana, 1 at Visakhapatnam, and 2 at Noida. They also have set-up a distribution facility in Noida. In the United States, they have a manufacturing, warehousing and distribution facility at Eldridge, Iowa, acquired in 2005 of Olsen Engineering LLC, now known as Uniparts Olsen Inc. and a warehousing and distribution facility at Augusta, Georgia.