IPO Update: IPO of Uma Exports was Oversubscribed 4.17 Times and QIB Quota was Fully Booked

On March 29, the second day of bidding, retail investors continued to show interest in Uma Exports’ initial public offering (IPO).

The transaction was subscribed 4.17 times, with bids for 3.84 crore equity shares received against an IPO size of 92.3 lakh shares.

Retail investors have taken up 5.62 times the allocated quota, while non-institutional investors have taken up 94 percent of the quota and qualified institutional investors have taken up all of it.

The agricultural produce and commodities trader hopes to raise Rs.60 crore through the offering. The offer’s price range is Rs.65-68 per share, and it closes on March 30.

The company’s market capitalization is highest towards the top of the pricing range out to Rs.230 crore.

About UMA Exports IPO

“Uma Exports is engaged in the business of trading and marketing of agricultural goods and commodities like sugar, spices, lentils, and so on,” Abhay Doshi, Founder at UnlistedArena.com, stated of the company’s fundamentals. Although the company’s name suggests it is an exporter, the majority of revenues come from domestic sales, which account for 90.34 percent of total sales in FY2021, while exports account for only 9.66 percent. The company’s EBITDA margins are 2.83 percent and its PAT margins are only 1.62 percent, leaving no room for error in the event of adversity. Furthermore, the industry is cyclical in nature, and commodity prices have a high level of volatility.”