On day two, 2.02 times the amount of shares were subscribed for in Uniparts India’s initial public offering (IPO). On Friday, December 2, the issuance with a price range of Rs 548-577 per share would be completed. Prior to the start of its maiden sale, anchor investors gave the business Rs 251 crore at the top end of the pricing range.
On day 2, the Non Institutional Investors (NIIs) category had a subscription of 3.41 times compared to 0.97 times for Qualified Institutional Buyers (QIBs). 2.01 times of the retails fraction are subscribed.
The public offering of Uniparts India is only an offer for sale (OFS), and no funds would be received by the company. From the IPO, the business is anticipated to raise Rs 836 crore. On Monday, December 12, the company’s shares are most likely to be listed on the BSE and NSE.
“No comparable competitors exist with a product profile and business strategy equivalent to UIL. The aforementioned counterparts are only taken into account when benchmarking the requested values. The business is requesting an EV/sales multiple of 2.2x (to its FY22 revenues) at higher price bands, which seems to be comparable to the peer average. Even yet, UIL outperforms its peers on both profitability and return ratios. However, we believe the firm has sufficient levers to grow its business at a faster pace given the global policy tailwinds. As a result, we rate the issue as “SUBSCRIBE,” according to Choice Broking.