Uniparts India stock makes a weak debut

12 Dec 2022 , 12:13 PM

The National Stock Exchange (NSE) and the BSE have listed Uniparts India’s shares at Rs. 575, well below the issue price of Rs. 577 per share, giving the company’s stock market debut a weak performance.

After being listed, the industrial products company’s stock fell to Rs. 538, or 7% less than its NSE issue price. At 10:10 AM, Uniparts India traded at Rs. 552, a 4% decline from its IPO price. The benchmark indices, in contrast, had a 0.7% marginal decline. On the NSE and BSE together, 3.8 million shares were traded.

The company’s sales and net profit increased at a CAGR of 16 and 63%, respectively, throughout FY20-22, driven by a remarkable rise in EBITDA margins that reached 21.8% in FY22 and a return on capital employed (ROCE) of 27%. In its IPO note, ICICI Securities stated that the offer is pretty valued in light of the strong financials.

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