Uniparts India IPO lists at discount of -0.35% and trends lower

Uniparts India IPO had a tepid listing on 12th December 2022, listing at a small price discount of -0.35%, and closing the day well above the listing price. While the stock did show some bouts of volatility during the day, it closed more than 12% below the issue price on the first day of trading on the NSE. It also closed well below the listing price. With subscription of 25.32X overall and QIB subscription at 67.14X, the listing was expected to be positive at the very least. Here is the Uniparts India Ltd listing story on 12th December 2022, and the graphic clearly captures the consistent tapering of the stock on listing day.

Figure 1 - Intraday Stock Price Performance of Uniparts India on listing day

Data Source: NSE

The IPO price was fixed at the upper end of the band at Rs. 577 which is not surprising considering the rather healthy 25.32X overall subscription and 67.14X subscription for QIBs. The price band for the IPO was Rs. 548 to Rs. 577. On 12th December 2022, the stock of Uniparts India Ltd listed on the NSE at a price of Rs.575, a discount of -0.35% below the issue price of Rs. 577. On the BSE also, the stock again had a listing at a marginal discount at Rs. 575, a discount of -0.35% below the issue price.

On the NSE, Uniparts India Ltd closed on 12th December 2022 at a price of Rs. 537.60. That is a first day closing discount of -6.83% on the issue price of Rs. 577 and a discount of -6.50% on the listing price of Rs. 575. On the BSE, the stock closed at Rs. 539.55. That represents a first day closing discount of -6.49% below the issue price and a discount of -6.17% below the listing price on the stock exchange. On both the exchanges, the stock not only listed below the IPO issue price but closed Day-1 sharply below the listing price. Clearly, despite the strong subscription numbers, the sentiments in the market have taken its toll on the first day of listing as there was a rush to exit the stock after the weak opening.

On Day-1 of listing, Uniparts India Ltd touched a high of Rs. 577 on the NSE and a low of Rs. 536.50. The discount sustained through the day. In fact, if you look at the range of prices, the stock never crossed the issue price through the day and the IPO price turned out to be the high price for the day, showing the kind of pressure the stock was under. On Day-1 of listing, the Uniparts India Ltd stock traded a total of 75.31 lakh shares on NSE amounting to value of Rs. 420.33 crore on the first day. The order book during the day showed a lot of selling pressure with the sell orders far exceeding the buy orders at any point of time.

Let us now turn to the performance of the stock on the BSE intraday on the day of listing. On Day-1 of listing, Uniparts India Ltd touched a high of Rs. 577 on the NSE and a low of Rs. 536.15. The discount sustained through the day. In fact, if you look at the range of prices, the stock never crossed the issue price through the day and the IPO price turned out to be the high price for the day, showing the kind of pressure the stock was under. On Day-1 of listing, the Uniparts India Ltd stock traded a total of 5.06 lakh shares on NSE amounting to value of Rs. 28.33 crore on the first day. The order book during the day showed a lot of selling pressure with the sell orders far exceeding the buy orders at any point of time.

At the close of Day-1 of listing, Uniparts India Ltd had a market capitalization of Rs. 2,435.19 crore with free-float market cap of Rs. 560.09 crore. The company has a face value of Rs10 per share and is traded in the B-segment of the BSE and the Normal Market segment of the NSE. At the end of the day the delivery positions were 43.16% on the NSE, and with the stock under pressure, shows a lot of delivery selling by the IPO allottees.