Uniparts’ listing date has been set for December 12, 2022, meaning shares of Uniparts India Limited – a technical systems and solutions company – will hit the secondary markets in a special pre-opening session today. According to the information available on the BSE website, Uniparts India Limited shares will be listed in Securities Group ‘B’ List and admitted to trading on the BSE and NSE.
According to stock market experts, Uniparts’ IPO price may be approximately €620 in the bear case, while in the bull case he may debut about €635 levels per piece. They said the stock looks good from every perspective, but only negative for the public issuance is that it’s 100 percent OFS. As such, big investors may not rush into the stock immediately after its listing. However, they said long-term investors can hold the stock after the positive listing as it could rise €750 levels each in the short to medium term.
Regarding the Uniparts IPO price prediction, Abhay Doshi, Founder of UnlistedArena.com said, “Uniparts IPO has received a bit of a low reception despite the reasonable price. The broader market has also cooled off from recent highs. If we look at the reaction and market sentiment, expect a subdued listing of only around 8-10 percent premium.”
Anticipating a positive opening for Uniparts India’s share price, Ravi Singhal, CEO of GCL Securities said, “A lot will depend on the sentiment in the stock markets at the time of the listing. In the event of a weak open, Uniparts India stock price could open around €620 unit levels while in case of a strong open Uniparts IPO price can be expected €635 levels per piece. However, allotment recipients can remain content that the stock may have a positive listing despite today’s market sentiment. The public offering was cheap and the only hurdle to a successful listing of the shares is the 100% OFS feature. Because of this, major investors may not jump into the stock immediately after the shares are listed, as the net proceeds do not support the company’s fundamentals.”
Santosh Meena, Head of Research at Swastika Investmart, forecasts up to 10 per cent listing gains for allotment beneficiaries and said: “The issue has received a good response from investors on both the institutional and retail side and the current GMP is 60 i.e. around 10 per cents above the issue price. It also enjoys a healthy financial position with continued sales and profit growth and improving margins. In terms of risk factor, the issue represents a full offer to sell. However, the issue is priced at an attractive P/E rating of 15.61, which is lower than its listed peers.”
“Uniparts maintains a strong position in its operating segment and shows steady financial growth. The IPO could be listed at a premium of around 5 to 10 percent on the day of listing,” said Ravi Singh, Vice President & Head of Research at Parts India.
What GMP signals
According to market observers, Unipart’s IPO is now GMP (Grey Market Premium). €45, meaning the gray market expects Unipart’s IPO listing to be close €622 levels per piece.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage firms and not Mint. We advise investors to consult certified professionals before making any investment decisions.
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