Noida-headquartered manufacturer of engineered systems and solutions Uniparts India Ltd has received capital markets regulator Securities and Exchange Board of India's (SEBI) approval for its proposed initial public offer (IPO).
Uniparts had filed its draft red herring prospectus with SEBI for around Rs 300 crore ($48.3 million) public float in September 2014. Close to half of this money will go to provide a partial exit to private equity firm PineBridge and to existing promoters who are also selling some shares.
PineBridge (earlier known as AIG Capital Partners Inc) invested Rs 83 crore ($21 million then) in the firm through AIG's private equity unit in 2007 (and 2009 through a rights issue). Now under PineBridge, the PE investor owns 20.68 per cent stake. It is selling just under half of its holding in the company in the proposed issue.
PineBridge would get a little over 2x on its seven-year-old investment, as per VCCircle estimates. Its holding would shrink to around 10.2 per cent stake.
The company would use Rs 80 crore to set up manufacturing units at Visakhapatnam and Ludhiana, Rs 30 crore for prepayment of debt and the balance on acquisitions and other strategic initiatives.
Edelweiss, IIFL (formerly India Infoline) and ICICI Securities are managing the issue.
Founded in 1984, Uniparts' products include 3 point linkage (3PL), precision machined parts (PMP), power take-off, hydraulic cylinders, fabrication and gripwel fasteners. International sales accounts for around 89-90 per cent of consolidated revenue from operations.
(Edited by Joby Puthuparampil Johnson)