Uniparts India shares listed at 0.3% discount to IPO price on NSE and BSE amid a negative domestic market. The shares debuted at Rs 575 on the bourses as compared to the issue price of Rs 577. The scrip touched a low of Rs 539 before recouping some losses to trade with a 3.2% discount at Rs 556. Prior to the listing, analysts expected a stellar debut as Uniparts India shares were trading at a premium of Rs 51 or 9% in the grey market.

“The company’s muted listing debuted at Rs 575 over its issue price of Rs 577. But the issue had received a good response from investors on both the institutional and retail sides. The company has a leading market presence, a global business model, and long-term relationships with key customers. So, allottees who applied for the public offering for listing premium are advised to maintain their stop loss at Rs 535”, said Santosh Meena, Head of Research, Swastika Investmart.

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The IPO received substantial interest from investors as it was subscribed 25.32x overall, the price band was set between Rs 548-577. The issue raised Rs 835.61 crore for the company, while anchor investors bought shares with Rs 251 crore. Uniparts India IPO consists entirely of an offer for sale (OFS) of 1.44 crore shares from its current promoters and shareholders. Ashoka Investment Holdings and Ambadevi Mauritius Holding are divesting their stake in the company by selling their entire holding of over 93 lakh shares. The current promoters are selling over 44 lakh shares and they hold 75.54% of a stake in the company. Uniparts India will not receive any capital from the IPO.

Prior to the listing, Santosh Meena of Swastika Investmart said, “It enjoys a healthy financial position with continuous growth in revenue and profit and improving margins. As for the risk factor, the issue is a complete offer for sale. However, the issue is attractively priced at a P/E valuation of 15.61, which is lower than its listed peers.”

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Uniparts India is a renowned manager of engineered systems and solutions, while also supplying systems and solutions for the off-highway market in the agriculture and construction, forestry and mining and aftermarket sectors. Since Uniparts manufactures load bearing and structural parts of equipment, it is subject to heavy scrutiny. The company has an established presence in 25 countries across Europe, North America, Asia and Australia.