After a healthy subscription, investors who bid for Uniparts India's initial public offering (IPO)will be closely tracking the share allotment and listing dates.
Opened on November 30, the Rs 836-crore public issue closed on December 2 and was subscribed more than 25 times, supported by all categories of investors.
Qualified institutional buyers provided the maximum support, subscribing 67.14 times their allotted quota. High net worth individuals followed, as they bought shares 17.86 times the portion set aside for them. While the portion reserved for retail investors was booked 4.63 times.
The response to the issue, which was entirely an offer for sale by shareholders, was along expected lines.
The subscription was fuelled by healthy financial performance, reasonable valuations, long-term relationships with key global customers, experienced promoters and a qualified senior management team, and a positive industry outlook, according to experts.
Also read: MC Explains | What is confidential IPO filing and why do companies do it?
Uniparts India is a global manufacturer of engineered systems and solutions. It 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, with a presence across over 25 countries and 5 manufacturing facilities.
The company will finalise share allotment by December 7, as per the IPO schedule. Given the oversubscription in each category, equity shares will be allotted on a proportionate basis.
Refunds will be credited to the bank accounts of unsuccessful investors by December 8 and eligible investors will get shares in their demat accounts by December 9.
Uniparts will list its shares on the BSE and the National Stock Exchange on December 12. The grey market premium (GMP) indicated that the listing could be with more than 10 percent gains over the expected final issue price of Rs 577 a share, partly supported by the improved market sentiment, experts added.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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