Uma Converter Limited plans to raise Rs 3,600 lakhs by going public. With an established capacity of 720 metric tons annually, the company produces flexible packaging material.
The company was established in 1999 and produces flexible packaging. They have a 720-metric-ton annual installed capacity. The business started its financial operations in 2001 with a turnover of Rs 88 lakh and has since seen a steady increase in revenue and operations. In Dascroi, Ahmedabad, they established a second production facility in 2018.
Uma Converter Limited Objective
- The net proceeds from the new issues will be used by them to pay off and advance some market borrowings.
- The company will use the fund for expansion of the manufacturing unit in Timba, Gujarat.
Why should you invest in Uma Converter Limited IPO?
Here are our top reasons.
- In order to conduct research, design, and development on a wide range of therapeutic goods, they have established major business ties with numerous pharmaceutical corporations in the US and the UK.
- The company has displayed resilience and increased its net turnover during the COVID-19 period in 2020.
- The company commenced export operation from unit-I in 2006 and from unit-II in 2019.
- The company makes flexible packaging that serves multiple purposes and enables it to meet the demands of numerous sectors.
Uma Converter Limited IPO Financials
| Particulars | FY21 | FY20 | FY19 |
|---|---|---|---|
| Revenue From Operation | 10,359.10 | 10,442.93 | 9017.20 |
| EBITDA | 1,056.77 | 1104.55 | 1012.88 |
| EBITDA Margin (%) | NA | NA | NA |
| Profit After Tax | 274.26 | 425.62 | 415.95 |
| EPS | 2.01 | 3.29 | 3.66 |
| ROE | NA | NA | NA |
Know before investing
Strengths
- Their integrated business model provides all packaging solutions to customers by researching and designing suitable packaging materials.
- They have a long standing business presence in providing need-based packaging solutions to PAN India customers.
- They cater to customers from various industries, including food and beverage, hygiene and personal care, pharmaceutical, household, and agriculture.
Risks
- Outbreak of a global pandemic will impact the future cash flow of the company.
- A slowdown of the country’s economy can impact the company’s financials in the future.
- Changing laws, rules and regulations, legal uncertainties, and changes in the tax system may adversely impact the company’s future profitability.
Uma Converter Limited Peer Comparison
| Company Name | Total Income (in rs million) | EPS | P/E |
|---|---|---|---|
| Essel Propack Ltd. | 9,552 | 4.85 | 57.81 |
| Uflex Ltd. | 74,316.23 | 51.21 | 17.21 |
| Mold-Tek Packaging Ltd. | 4,393.62 | 16.97 | 28.48 |
| Huhatamaki PPL Ltd. | 24,707.20 | 11.24 | 26.20 |
| Uma Converted Ltd. | 1,039.85 | 2.01 | NA |
Uma Converter Limited IPO FAQs:
Q1. What is Uma Converter Limited IPO?
Ans. Uma Converter Limited will raise Rs 3,600 lakhs through IPO route.
Q2. When will Uma Converter Limited IPO allotment be available?
Ans. Details not available.
Q3. What will be Uma Converter Limited IPO lot size?
Ans. Details not available.
Q4. When will Uma Converter Limited IPO open for subscription?
Ans. Details not available.
Q5. What minimum lot size can retail investors subscribe to?
Ans. Retail investors can apply for a minimum of one lot.
Q6. When will Uma Converter Limited list on exchanges?
Ans. It usually takes ten working days from the last day of subscription to list the IPO on the bourses.
Q7. What would be the listing gains on Uma Converter Limited IPO?
Ans. Listing gain is the difference between the IPO’s opening and offer prices. The listing gain results from changing investors’ interests, global parameters, and short vs long-term outlooks.
Q8. I have finished the application process for Uma Converter Limited IPO, but the funds are not yet debited. What is the reason?
Ans. The bank initially blocks the amount you bid for an IPO. It will debit the amount when the shares get allotted or unblock it after the UPI mandate expiry date.
Q9. How to approve the UPI mandate request for Uma Converter Limited IPO?
Ans. Login to your UPI handle and approve the payment mandate to complete the IPO application process.
Q10. Can I submit more than one application for the public issue of Uma Converter Limited using one PAN?
Ans. You can submit only one application using one PAN card.
Q11. What is the minimum order quantity for Uma Converter Limited IPO?
Ans. The minimum size of the application will be one lot.
