Uma Exports IPO: Agricultural commodities trader Uma Exports is going to list on BSE, NSE tomorrow i.e. Thursday, April 7, 2022, at 10:00 am. The Rs 60 crore public issue of agricultural produce and commodities trader had received a decent response from investors, getting subscribed 7.67 times during March 28-30. Uma Exports Limited was selling its shares in the range of Rs 65-68 apiece via its initial stake sale and the issue entirely consists of issuance of fresh equity shares with a face value of Rs 10 each. Shares of the Uma Exports IPO will be listed at both BSE and NSE. Investors could bid for a minimum of 220 equity shares.
Uma Exports IPO: Subscription Status
The offer received bids for 7.08 crore shares as against 0.92 crore shares on offer. The initial public offer (IPO) of UMA Exports received bids for 7,08,34,280 shares as against 92,30,769 shares on offer. The issue was subscribed 7.67 times. The retail investors category was subscribed 10.11 times. The qualified institutional buyers (QIBs) category was subscribed 2.81 times. The non institutional investors category was subscribed 2.22 times.
Uma Exports IPO: GMP
Shares of Uma Exports are yet to make its debut in the grey market. So, Uma Exports IPO GMP (grey market premium) is still not available even after the bidding process ended for the issue.
Uma Exports IPO: Financials
Despite the company name indicating an export company, over FY20-21, Uma Exports’ business of import of agro commodities and sale in domestic market constituted around 93 percent of the total revenue. In H1 FY22, business from exports was 15.7 percent of the revenue.
The company has reported a short but strong financial performance over FY19-21, which is being characterised by business growth with stability in the profitability margins, said Choice Broking. It reported a 51.1 percent CAGR rise in consolidated revenue to Rs 750.7 crore in FY21, mainly on the back of higher sales volume over FY19-21.
The gross margin declined from 14.7 percent in FY19 to 10.3 percent in FY21. However, Choice Broking said mainly on account of lower employee costs and other expenses, EBITDA margin stood at an average of 2.5 percent over FY19-21. Consolidated EBITDA (earnings before interest, tax, depreciation and amortisation) increased by 52.7 percent CAGR to Rs 19.9 crore in FY21.
Uma Exports IPO: Valuations
At the higher end of the price band, the market capitalisation of the company works out to Rs 230 crore.
“At a higher price band of Rs 68, Uma Exports is demanding a P/E (price-to-earnings) multiple of 18.9x (to its TTM earning of Rs 3.6), which is at discount to only listed peer. Considering the lower trading margins, the business of the company doesn’t seem to be sustainable. Thus we are assigning an ‘avoid’ rating for the issue,” said Choice Broking.
Uma Exports is engaged in the business of trading and marketing of agricultural produce and commodities. The products include such as sugar, spices like dry red chillies, turmeric, coriander, cumin seeds, food grains like rice, wheat, corn, sorghum, and tea, pulses, and agricultural feed like soyabean meal and rice bran de-oiled cake.
The company imports lentils, faba beans, black urad dal and tur dal majorly from Canada, Australia and Burma. As a B2B Trader, the company is highly specialized in sugar and lentils. The company supplies its products to the manufacturers and exporters as per their demand in bulk quantities.
The company also exports products to countries including Malaysia, Sri Lanka and Bangladesh. The Company presently exports its consignments from a number of Indian ports including Mundra, Jawaharlal Nehru Port Trust, Kandla, Chennai, Kakinaka and Visakhapatnam. The company reported a net profit of Rs 8.97 crore and sales of Rs 523.75 crore in the six months ended 30 September 2021.
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