Analysis of the Uma Converter IPO

To Subscribe or Not to Subscribe to the Uma Converter IPO?

• On December 15th, 2022, Uma Converter, situated in Gujarat, plans to conduct its initial public offering.
• It will run through December 21st, 2022. The firm’s flexible packaging is ultimately placed into service in the food and beverage, e-commerce, pharmaceutical, hygiene and personal care, domestic, and agricultural sectors.
• By offering 55,80,000 shares at INR 33 each, the business hopes to raise a total of INR 18.4 crore. We’ve read the prospectus and done an in-depth analysis of the company’s operations across 25 different metrics to get a handle on what’s going on. Please scroll down for a more in-depth analysis of the Uma Converter IPO.

1. Does the company make more than 50 million Indian Rupees a year?

The website Uma Converter did, in fact, earn over INR 187 crore in income for the fiscal year 2022.

2.Does the business have a yearly net income of more than 5 crore Indian Rupees?

In FY 2022, Uma Converter’s net income after taxes came in at an impressive INR 4.9 crore. Earnings for the first half of the fiscal year 2023 totaled INR 3.26 crore. This number might easily surpass INR 5 crore when extrapolated to an annual rate.

3.Do customers have a positive association with the company’s brand?
Uma Converter, on the other hand, is a business-to-business (B2B) supplier whose clients operate in sectors where low prices are particularly valued.

4.Is there a wide and deep barrier to entry, market reach, etc., that makes this a company worth investing in?

Uma Converter, you are correct, is in a very competitive and expensive market. These prerequisites, along with the need for technical expertise, create extremely high hurdles to entry.

5.Is the organization safe from losing any particularly lucrative clients?

During H1 FY 2023, the top 10 customers accounted for 59.35% of Uma Converter’s revenue. While this demonstrates the company’s reliance on a small number of clients, it’s encouraging to see that this number has decreased from FY 2020s by 84.19%.

6.How much of the company’s annual revenue comes from exports, and does this give it an edge over rivals?

Uma Converter’s exports contributed only 1.57 percent of its revenue in the first half of the fiscal year 2023.

No. As was previously indicated, the corporation largely deals with other businesses and has limited contact with end users.

7.Do retail customers feel they have a solid connection to the company?

Although certain retail customers may occasionally be served, the company’s primary focus is on business-to-business transactions.

Comprehensive Management Evaluation of the Uma Converting IPO

1.How well-equipped is the company’s upper management to steer operations through challenging times?

Mr. Sumer Raj Lodha and Mrs. Nirmala Lodha, the company’s promoters, have been involved with the business since its start and collectively have more than 30 years of expertise in the packaging sector. Mr. Abhishek Sumer Raj Lodha, another promoter who joined the company in 2015, has been instrumental in the expansion of its units in the state of Gujarat.

2.How much do the management members/promoters get paid, and do they get paid in a way that doesn’t put the interests of the shareholders at risk?

In fact, the company paid out a whopping INR 2.17 crore to its three promoters in fiscal year 2022, which was far more than the company earned in profit, at INR 4.98 crore. The business has also come clean about the fact that the compensation paid to Nirmala Lodha and Abhishek Lodha for the fiscal year 2019-2021 exceeded the restrictions set under the Companies Act, 2013 (Section 197 and clause II (A) of Schedule V, Part II) in the event of inadequate profits.

3.After the IPO, would the promoters still own a significant portion of the company?

Yes, the promoters and promoter group currently possess about 95% equity stake in the company. After the first public offering, this percentage will decline to almost 69%.

5.Is the current management trustworthy? Is there ever any case of someone putting the company’s shares at risk for their own gain?

We did not discover any examples of management breaching shareholders’ interests, save for the exorbitant wage issue.

6.Is the nature and scope of any pending litigation or criminal proceedings against the company minor and do they not involve substantial sums of money?

There are no notable lawsuit cases outstanding against Uma Converter, its directors, promoters or group organisations. A total of 4 major civil litigations and direct tax proceedings are pending involving a total sum of INR 15.39 lakh.

7.Is there a pledge on the management’s shares at any financial institutions?

Yes. On the prospectus date, no promoter shares had been committed.

8.Do private equity/venture capital firms and other outside investors back the project?

No. Above, we saw that promoters and promoter group businesses hold a majority stake in the company. No outside capital is involved.
The Management Analysis part of the Uma Converter IPO Review receives a score of 5 out of 7.

Company Financials

IPO tentative schedule for Dollex Agrotech

The IPO for Dollex Agrotech starts on December 15, 2022, and ends on December 20, 2022. The bid date for the Dollex Agrotech IPO is from December 15, 2022, at 10 a.m. to December 20, 2022, at 5 p.m. The last time to confirm a UPI mandate is at 5 p.m. on the issue closing day.

Analysis of Uma Convert’s IPO’s Financial Results

1. Is the company’s revenue growth rate over the past three years at least 10%?

Yes. The growth rate for Uma Converter’s revenue was 21.8%, from INR 103.6 crore in FY 2020 to INR 186.99 crore in FY 2022.

2. Is the company’s net profit growth rate over the past three years at least 25%?

In FY 2020, No. Uma Converter earned INR 2.8 crore, and in FY 2022, it earned INR 4.98 crore, for a CAGR of 20.9%.

3. How much higher than 15% has ROE been on average over the past three years?

Actually, throughout the past three years, the company’s RONW has averaged 9.2% annually.

4. Are operating cashflows positive and have they been for the past three years?

Yes.

5. Has the firm’s debt-to-equity (D/E) ratio been steadily reducing over the past three years?

The company’s D/E did not remain stable; instead, it grew from 1.39 in FY 2020 to 1.54 in FY 2022.

6. Does the amount of working capital needed by the company each year not exceed 20% of its revenue?

Working capital needs for FY 2022 was INR 57.8 crore for Uma Converter. The company needed a total of 30.9% of its annual revenue to cover its working capital needs.

7. Is there less debt than equity (debt to equity)?

False, as of 31 March 2022, the company’s D/E ratio was 1.5.

What is an IPO for Dollex Agrotech?

Dolls Agrotech’s initial public offering (IPO) is an SME IPO made up of 6,968,000 equity shares with a face value of 10 each, which adds up to 24.39 Crores. The price per share is 35 pounds. The minimum number of shares you can order is 4000.

The IPO starts trading on December 15, 2022 and ends on December 20, 2022.

The IPO is being signed up for by Skyline Financial Services Private Ltd. It is planned to list the shares on NSE SME.

Also, Visit Dollex Agrotech IPO

Uma Converter IPO FAQs

1.What does IPO stand for?
Uma Converter’s initial public offering (IPO) is a SME IPO made up of 5,580,000 equity shares with a face value of 10 each, for a total of 18.41 crores. The price per share is 33 pounds. The minimum number of shares you can order is 4000.

The IPO starts trading on December 15, 2022, and ends on December 21, 2022.

The IPO is being kept track of by Bigshare Services Pvt Ltd. It is planned to list the shares on NSE SME.

2.How to apply through Zerodha for the Uma Converter IPO?
Customers of Zerodha can apply for the Uma Converter IPO online and pay with UPI. Customers of Zerodha can apply for the Uma Converter IPO by logging in to their “back office” at Zerodha Console and filling out an IPO application form.

3.How to sign up for the Uma Converter IPO through Zerodha

• Log in to Console on the Zerodha website.
• Click the IPOs link on the Portfolio page.
• Click the “Bid” button next to the “Uma Converter IPO” row.
• Type in your UPI ID, the amount, and the price.
• “Send in” your IPO application form.
• To approve the mandate, go to the UPI App (net banking or BHIM).

4.When will Uma Converter’s IPO start?
The IPO for Uma Converter starts on December 15, 2022, and ends on December 21, 2022.

5.How many lots does Uma Converter IPO have?
Uma Converter’s initial public offering (IPO) lot size is 4000 Shares, and the minimum order size is.
How do I apply for an IPO from Uma Converter?
You can apply for the Uma Converter IPO online and pay with either UPI or ASBA. Your bank account’s online banking is where you can find the ASBA IPO application. Brokers offer the UPI IPO application, but they don’t do banking. Find out more about how to apply for an initial public offering (IPO) online through Zerodha, Upstox, 5Paisa, Edelweiss, ICICI Bank, HDFC Bank, and SBI Bank.

6.When was Uma Converter’s IPO?
The Basis of Allotment for the Uma Converter IPO will be finalised on December 26, 2022, and the allotted shares will be put in your demat account by December 28, 2022. Check on the status of the Uma Converter IPO allotment.

7.When is the IPO date for Uma Converter?

The date for Uma Converter’s IPO has not been set yet. The most likely date for the IPO of Uma Converter is December 29, 2022.