Uniparts India Limited IPO

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i. Uniparts India is a global manufacturer of engineered systems and solutions and is 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 on account of our presence across over 25 countries.

ii. Uniparts India is a concept-to-supply player for precision products for off-highway vehicles (“OHVs”) with a presence across the value chain. The product portfolio includes core product verticals of 3-point linkage systems (“3PL”) and precision machined parts (“PMP”), as well as adjacent product verticals of power, take-off (“PTO”), fabrications, and hydraulic cylinders or components thereof. They have a leading presence in the manufacture of 3PL and PMP products globally on account of us serving some of the largest global companies.

iii. Most of the products are structural and load-bearing parts of the equipment and are subject to strict tolerances, specifications, and process controls. A series of precision engineering process steps converge into the manufacturing of these products.

iv. The company has an estimated 14.45% market share* of the global 3PL market in Fiscal 2021 in terms of value and an estimated 5.87% market share** in the global PMP market in the CFM sector in Fiscal 2021 in terms of value. They also cater to the aftermarket segment, especially for the 3PL product range. They provide replacements of 3PL parts to organized aftermarket retailers and distributors in North America, Europe, South Africa, and Australia.

A brief description of the core products company manufacture is set out below:

3PL: The 3-PL systems consist of different assemblies that are attached to an agricultural tractor. It forms a group of assemblies allowing attaching an implement like a plough to the tractor at 3 coupling points. (Source: CRISIL Report) The systems are engineered customised to each tractor model and region in which the tractor is used as the specifications vary from region to region. These systems are subject to validation and have to comply with international standards.

PMP: PMP is a group of products that are components requiring stringent material and manufacturing specifications and controls. These include among others, precision machined components such as pins, bushes and bosses used in articulated joints. (Source: CRISIL Report) These are structural and load bearing parts of the equipment and are subject to strict tolerances, specifications and process controls. The product varies in design and technical specification between different applications. The number of SKUs are high and varied in this product category.

Competitive Strengths

i. Leading market presence in global off-highway vehicle systems and components segment.
ii. Engineering driven, vertically integrated precision solutions provider.
iii. Global business model optimizing cost-competitiveness and customer supply chain risks

Objects of the Uniparts India Limited IPO:

The company will not receive any proceeds from the Offer and all such proceeds will go to the Selling Shareholders.

Uniparts India Limited IPO Details:

Open Date: Nov 30 2022
Close Date: Dec 02 2022
Total Shares: 15,731,942
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue
Issue Size: 835.61 Cr.
Lot Size: 25 Shares
Issue Price: ₹ 548-577 Per Equity Share
Listing At: NSE,BSE
Listing Date: Dec 12 2022

Promoters And Management:

Gurdeep Soni is the Chairman and Managing Director of the Company and has been associated with the Company since its incorporation. He was appointed as a Director of the Company on September 26, 1994. He holds a master’s degree in management studies from the Birla Institute of Technology and Science, Pilani. He has 42 years of work experience including 27 years of experience in different roles within the Uniparts Group. He has been actively involved in the day-to-day operations of the Company and is responsible for the after-market business of the Uniparts Group. Paramjit Singh Soni is an Executive Director and Vice Chairman of the Company and has been associated with the Company since its incorporation. He was appointed as Director of the Company on September 26, 1994. He holds a bachelor’s degree in commerce from the University of Delhi. He has 40 years of work experience including 27 years of experience as a Director of the Company and is presently based in the USA. He is responsible for the OEM business of the Uniparts Group and also actively involved in the formulation of corporate strategy and planning and concentrates on the business growth and diversification plans of the Company Herbert Coenen is a Non-Executive Director of the Company. He was appointed as a Director of the Company on January 12, 2013. He holds a diploma from the University of Applied Science, Cologne in mechanical engineering. He has over 35 years of work experience, of which 20 years were with GKN Walterscheid GmbH. He is associated with the Uniparts Group since May, 2005 and has played a key role in business development, business expansion and technology adoption of the Company and its Subsidiaries outside India. He is also the managing director of the Subsidiary, Uniparts India GmbH.

Financials of Uniparts India Limited IPO:

Particulars (in crores) Dec-21 Mar 21 Mar-20
Revenue from operations 880 903 907
Cost of Materials Consumed 386 338 332
Change in Inventories -112 14 -3
Employee Benifit Expense 160 185 211
Other Expense 248 245 270
Operating Profit 198 121 97
OPM% 22.50% 13.40% 10.69%
Finance Cost 4 8 17
Depreciation 27 37 35
Other Income 3 44 31
Profit (Loss) before tax 169 118 74
Tax Expense 47 26 11
Profit (Loss) for the period 122 92 62

Comparison With Peers:

There is no listed peer related to such business.

Recommendation on Uniparts India Limited IPO:

To be updated shortly

Registrar of Uniparts India Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Uniparts India Limited Gripwel House, Block – 5, Sector C6 &7, VasantKunj NewDelhi 110070 Phone: + 91 120 458 1400 Email: compliance.officer@unipartsgroup.com Websitehttps://www.unipartsgroup.com/

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