Kolkata based Uma Exports IPO plans to raise ₹60 crore from the issue. Uma Exports IPO price band has been fixed at ₹ 65-68 per share while the issue. Uma Exports IPO will close for subscription on 30th March 2022.
Price Band: Rs. 65-68
Fresh Issue (shares in lakh): 88.24
Issue date: 28-03-2022 to 30-03-2022
Offer Allocation QIB – 2%, Retail– 69%, NII – 29%
Minimum order quantity: 220
Face value (in Rs.) 10
Uma Exports IPO: Salient Points and Assessment
- Uma Exports Limited markets, trades and distributes agricultural products including rice, wheat, sugar, spices, dry red chillies, coriander, cumin seeds, food grains, pulses, etc.
- It is a B2B trader supplying products to manufacturers, exporters etc.
- Uma Exports imports products like lentils, faba beans, black urad dal, and tur dal in India in bulk quantities from Canada, Australia, and Burma.
- Company acquired 100% shareholding of U.E.L. International FZE, incorporated under the laws of United Arab Emirates and having its registered office at AL Hamra Industrial Zone-FZ, Ras Al Khaimah, United Arab Emirates. U.E.L. International FZE is engaged in business of trading in sugar, spices & textile.
- Listed peers of the company are
- Sakuma Exports ( PE 15.68 ),
- Gokul Agro Resources ( PE 13.6 )
- Gujarat Ambuja Exports Ltd. (PE 12.5)
- Company is in process of setting up a procurement office in Australia through a wholly owned subsidiary which will allow it to procure the commodities directly in Australia.
- Revenue from operations has grown at a CAGR of 51% from Fy 2019 to 2021.
- EBITDA has grown at a CAGR of 52% from FY 2019 to 2021.
- Company has given Rs. 20 cr. corporate guarantee for loan taken by a group’s partnership firm Uma Udyog.
- Revenues from domestic sales is 90% of total sales in FY2021 while exports contribute 10% to the revenue. However recent initiatives of company are aimed at increasing exports.
- Company is into trading of commodifies where prices have a characteristic of high volatility,
- Working capital requirement are high in trading business and even after IPO company will have net debt of Rs. 34 cr.
- Company’s scale of operations is quite small with only 17 employees.
- Uma Exports will list T2T segment. This is a risk but many times exploited by operators for speculative activity.
- Fundamentals despite good growth in last 3 years are poor to average but speculative action cannot be ruled out looking at subscription data of Uma Exports IPO on first 2 days.