Uma Exports Limited’s IPO will run from March 28, 2022, to March 30, 2022, and it plans to list on the exchanges on April 7, 2022. The price band for the issue is set at ₹65 to ₹68 per share and it plans to raise ₹60 crores through this issue, out of which ₹50 crores will be used to fund its working capital requirements.
The company is engaged in marketing, trading and distribution of agricultural products such as rice, wheat, spices, sugar, food grains, seeds, pulses and so on, in domestic as well as international markets.
As per its draft papers, it is in the process of setting up a procurement office in Australia in order to directly dispatch procured commodities from Australia to various global locations as it will help the company to save costs like freight and import duties and increase its profitability.
The firm imports faba beans, black urad dal and tur dal majorly from Canada, Australia and Myanmar and it exports sugar to UAE, Sri Lanka and Afghanistan.
Financials
The company’s total income stood at ₹ 752.03 crores in FY21, as against ₹ 810.31 crores in FY20. Its net profit increased from ₹19.75 crores in FY20 to ₹21.25 crores in FY21. Its total debt for the period was ₹42.14 crores.
The objective of the issue
The company proposes to use the proceeds from the issue for:
- Augmentation of working capital requirements.
- General Corporate Purposes.
Important dates related to the IPO
| Opening Date | Mar 28, 2022 |
| Closing Date | Mar 30, 2022 |
| Basis of Allotment Date | Apr 4, 2022 |
| Initiation of Refunds | Apr 5, 2022 |
| Credit of Shares to Demat Account | Apr 5, 2022 |
| IPO Listing Date | Apr 7, 2022 |
Other details
| Issue Type | Book Built Issue IPO |
| Face Value | ₹10 per equity share |
| IPO Price | ₹65 to ₹68 per equity share |
| Market Lot | 220 Shares |
| Min Order Quantity | 220 Shares |
| Maximum Order Quantity | ₹1,94,480 |
| Listing At | BSE, NSE |
| Issue Size | ₹60.00 |
| Fresh Issue | Eq Shares of ₹10 (aggregating up to ₹60.00 Cr) |
| QIB Shares Offered | 50% of the net offer |
| Retail Shares Offered | 35% of the net offer |
| NII (HNI) Shares Offered | 15% of the net offer |
Competitive Strengths of the company
- Experienced management team.
- Long-term relationship with clients and repeat business.
- Strong presence in agro commodities trading segment.
- Track record of growth and profitability.
Weaknesses
- There is inconsistency in its financial track record.
- It has not paid dividends for the reported periods of RHP.
- Its business carries the risk of seasonality and government policies.
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
