The IPO or Initial Public Offering got off to a good start today with the shares fully subscribed on the very first day on the back of strong retail demand. After a brief slowdown, the primary market will see two companies sell shares this week: Veranda Learning and UMA Exports. Uma Exports mobilization plan 60 crores from the issue. The price band is fixed at 65-68 per share while the issue will close for subscription on 30 March 2022. As of 3 PM on Day 1, Uma Exports IPO was subscribed 1.73 times.
UMA Exports IPO: Here are 10 things to know:
lot size Uma Exports IPO 220 shares. 35% of the total issue is reserved for retail investors, 50% for QIBs (including anchors) and 15% for non-institutional investors.
Corporate Capital Ventures is the lead manager of the issue while Mass Services is the registrar of the issue. Uma Exports proposes to utilize the net proceeds from the issue for augmenting working capital requirements and for general corporate purposes.
The Kolkata based company is engaged in trading and marketing of agricultural products and food items like sugar, spices like dry red chillies, turmeric, coriander, cumin, rice, wheat, maize, sorghum and tea, pulses and agricultural feed. Such as soybean meal and rice bran de-oil cake.
It also imports pulses, faba beans, black matpe and tur (pigeon pea) in bulk quantities into India.
In 2021, the company’s revenue from operations was 750 crores while the net profit was According to Hem Securities, 12 crores.
According to brokerage firms, the allotment of shares in the IPO of Uma Exports is likely to be finalized on April 4 and listed on April 7.
The outstanding total fund based indebtedness of Uma Exports as on 30th September, 2021 and 31st March, 2021 was 56 crore and 38 crores respectively, according to Hem Securities, which has a Tall rating on the issue.
In the financial years 2021, 2020 and 2019, exports constituted 9.53%, 5.42% and 37.64% of its total income, respectively.
“Uma Exports is engaged in the business of trading and marketing of agricultural products and commodities like sugar, spices, lentils etc. The name of the company suggests to be an export company but most of the revenue comes from domestic sales which is 90.34% of the total. Sales in FY2021 while exports contribute only 9.66% to the revenue,” said Abhay Doshi of Unlisted Arena.
“The company has EBITDA margin of 2.83% and PAT margin of only 1.62% which leaves no place of safety in case of adverse conditions. Moreover, trading is cyclical in nature and characterized by high volatility in commodity prices,” he said. Meanwhile, the IPO of Veranda Learning Solutions opens tomorrow.
download
The app will get 14 days of unlimited access to Mint Premium absolutely free!