SEBI receives the DRHP of Uniparts' proposed IPO

14 Jun 2022 , 11:59 AM

Uniparts, a provider of engineering systems and solutions, has filed its planned IPO’s draft red herring prospectus (DRHP) with SEBI. There will be no fresh issue component to the IPO; it will be entirely an offer for sale by existing shareholders.

Unlike a new share offering, the OFS does not dilute the company’s capital or EPS, nor does it bring in new cash. This, on the other hand, is beneficial to the company’s floating stock, which serves as a facilitator for the company’s eventual listing.

The promoter group entities are responsible for the specific individuals and trusts offering shares in Uniparts’ OFS. The Karan Soni 2018 CG-NG Nevada Trust, The Meher Soni 2018 CG-NG Nevada Trust, and Pamela Soni are among the promoter’s marketing shares in the OFS.

Some early investors, such as Ashoka Investment Holdings Ltd and Ambadevi Mauritius Holding Ltd, will also issue shares in the OFS.

Uniparts is a provider of engineering systems and solutions, according to its business model. The overall offer for sale as part of the IPO will be for 1,57,31,942 equity shares, or a little over 1.57 core equity shares, to be sold by promoter group businesses and current investors.

Companies typically make an offer for sale not just to provide an exit for early owners, but also to improve the company’s market image and brand value through the listing, as well as to provide a foundation for pricing shares as currency.

This is Uniparts’ third effort to generate cash through an initial public offering. Uniparts has previously filed DRHPs with SEBI for its planned IPO in 2014 and again in 2018.

Uniparts received regulatory approval to launch the IPO on both occasions, but the business opted to postpone the IPO. After the IL&FS crisis produced acute tightness in India’s financial markets, the business decided to suspend its IPO plans in 2018.

Uniparts’ business strategy is that of a concept-to-supply provider of precision off-highway vehicle parts. It is present at every stage of the value chain. Uniparts features a core product portfolio as well as a complementary product selection.

3-point linkage systems and precision machined parts are the company’s main products. A power take-off, fabrications, and hydraulic cylinders or components make up the neighboring product vertical.

Uniparts India, a worldwide recognized manufacturer of designed systems and solutions, is a major provider of off-highway systems and components.

The primary user matrix focuses on areas including agriculture and construction, forestry, and mining among its numerous user industries. Uniparts has a strong and powerful presence in more than 25 countries throughout the world, in addition to its strong franchise in India.

The book-running lead managers (BRLMs) for Uniparts’ public offering are Axis Capital, DAM Capital Advisors (previously IDFC Securities), and JM Financial. The issue’s registrars will be Link In Time India.