Uniparts Taking IPO Route, Not Open To Do Business In China

Mobility Outlook Bureau
25 Nov 2022
04:09 PM
1 Min Read

This is Unipart's third attempt at filing an IPO. Bankers had advised the company to back off from earlier attempts due to unfavourable market conditions

Uniparts Leadership
Uniparts Leadership

Uniparts India has proposed to open November 30, 2022 an initial public offering of up to 14,481,942 equity shares with a face value of INR 10 each.

The offer will constitute 32.09% of the post-offer paid-up equity share capital, and will close on December 02, 2022. The price band of the Offer has been fixed at INR 548 to INR 577 per equity dhare. Bids can be made for a minimum of 25 equity dhares and in multiples of 25 thereafter.

A global manufacturer of engineered systems and solutions and 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, the company counts Kubota, Bobcat, Yanmar, Claas Tractors, TAFE, Kobleco, Kramp, TSC, and more as its clients.

Notably, the proceeds of the IPO will go to respective shareholders and not the company. It is also to be noted here that this is Unipart's third attempt at filing an IPO.

Gurdeep Soni, Chairman & MD, Uniparts, said that the bankers had advised them to back off from earlier IPOs as the markets were not conducive. The company is now hopeful that the market conditions and the world looking towards a China+1 strategy will help it perform better.

Soni said, “Two of our large clients are looking to withdraw components manufacturing lines worth over $200 million out of China.”

With five manufacturing locations in India and one in the United States, the company's revenue is driven by over 80% by overseas sales. Soni further added that the company will never do business in China.

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