28 Apr 2022

Uniparts files DRHP with SEBI for its proposed IPO

Uniparts, an engineering systems and solutions provider, has filed its draft red herring prospectus (DRHP) with SEBI for its proposed IPO. The entire IPO will be an offer for sale by the existing shareholders and there will be no new issue component in the IPO.

Unlike a fresh issue of shares, the OFS is not capital dilutive or EPS dilutive nor does it bring fresh funds into the company. However, this is instrumental in improving the floating stock of the company which acts as a facilitator for the eventual listing of the company stock.

In terms of the specific persons and trusts offering shares in the OFS of Uniparts, they are all part of the promoter group entities. Among the promoter group offering shares in the OFS include the Karan Soni 2018 CG-NG Nevada Trust, The Meher Soni 2018 CG-NG Nevada Trust and Pamela Soni.

Shares will also be offered in the OFS by some early investors including Ashoka Investment Holdings Ltd and Ambadevi Mauritius Holding Ltd.

Talking about the business model of Uniparts, it is an engineering systems and solutions provider. The total offer for sale as part of the IPO would be for a total of 1,57,31,942 equity shares or approximately a little over 1.57 core equity shares that will be offered by promoter group entities and existing investors.

Normally, companies do an offer for sale, not only to give an exit to early shareholders but also to enhance the market image and brand value of the company via listing as well as get a basis for valuing stock as currency.

Interestingly, this is the third attempt made by Uniparts to raise funds through an IPO. Earlier, Uniparts had filed DRHP for its proposed IPO with SEBI in the year 2014 and again in the year 2018.


While Uniparts got the regulatory clearance on both occasions to launch the IPO, the company had decided to shelve plans for the IPO. In 2018 company cancelled IPO plans after the IL&FS fiasco created acute tightness in the financial markets in India.

The business model of Uniparts is that of being a concept-to-supply player of precision products for off-highway vehicles. It has its presence across the entire value chain. Uniparts has a core product portfolio and an adjacent portfolio.

Its core product portfolio comprises of 3-point linkage systems and precision machined parts. The adjacent product vertical comprises of power take-off, fabrications and hydraulic cylinders or components.

Uniparts India, the globally accepted manufacturer of engineered systems and solutions, is one of the leading suppliers of systems and components for the off-highway market.

Among its many user industries, the key user matrix is focussed on sectors like agriculture and construction, forestry and mining. Apart from the strong franchise in the Indian market, Uniparts also has a very strong and robust presence across more than 25 countries globally.

Axis Capital, DAM Capital Advisors (formerly IDFC Securities) and JM Financial are the book running lead managers (BRLMs) to the public issue of Uniparts. Link In Time India will be the registrars to the issue.

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