Auto component supplier Uniparts is again looking to bring its IPO just months after the earlier SEBI approval became void. According to a report by Economic Times, the company may bring the INR3 billion (INR300 crore) IPO within a year. The report cited a senior executive as saying that the company is reconsidering bringing its IPO that may also allow an exit route to Private Equity (PE) investors Ambadevi Mauritius Holding Limited and Ashoka Investments Holdings Limited. The two investors hold a combined 20.68% equity stake.
Promoted by Gurdeep Soni and Paramjit Singh Soni, Uniparts supplies parts for off-highway vehicles, construction and agriculture equipment.
The company earlier filed draft IPO prospectus and received SEBI approval in February 2015 but did not bring the IPO within the 12 month timeframe. As a result, the company will need to file IPO papers again before bringing the IPO.
In its earlier draft prospectus, Uniparts IPO planned to sell 13 million shares – split between a fresh issue of 7 million shares while 4 million shares were to be sold by existing shareholders Ambadevi Mauritius Holding Limited and Ashoka Investment Holdings Limited. Including 2 million shares from selling individuals, the offer for sale (OFS) was at 6 million shares. Out of the net proceeds from sale of new shares, the company aimed to use INR800 million towards setting up new manufacturing facilities at Ludhiana and Visakhapatnam while another INR450 million were to be spent for debt reduction and acquisitions.
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Nevertheless, the company has funded the expansion of Ludhiana facility from internal accruals and is now looking to use IPO proceeds for expansion of Noida and Vishakapatnam facilities. Uniparts has six manufacturing facilities including five in India and one in the US with annual processing capacity of 50,000 MTA.
Eye on exports
Uniparts derives nearly 90% of its revenue exports while the domestic market contributes the remaining 10%. The company exports to 25 countries across Europe, Japan, North and South America with the US being the top destination.