Uma Exports IPO: The issue of Uma Exports, an export-import company of pulses and spices, received a good response from investors on the first day. The issue of the company opened on March 28 and will close on March 30. The IPO of Uma Exports has been subscribed 2.14 times on the first day. The bids are for 1.97 crore shares against 92.30 lakh equity shares of the company.
Retail investors showed good interest
The reserve portion for retail investors has subscribed 2.90 times till the first day. On the other hand, the reserve share for non-institutional investors is 46%.
However, the Qualified Institutional Buyers (QIBs) are yet to start bidding. Uma Exports reserves 50% QIB of the issue, 35% for retail investors and the remaining 15% for non-institutional investors.
Uma Exports plans to raise Rs 60 crore from the issue. The company’s IPO is a completely fresh issue. The funds raised from the issue will be used to meet the business requirements.
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what is price band
The price band for the issue of Uma Exports has been fixed at Rs 65-68. One lot of it is of 220 shares.
When will the listing happen?
The listing of shares of the company can be done on 7 April. Those who will not get the shares of the company, their funds will be returned by April 5. Those who will get these shares, their demat account will start showing the shares by 6th April.
What should investors do?
The company has devised such a business strategy under which it can export-import from one commodity to another as per the demand. The management of the company has adopted this policy so that the company always has the work of export-import in some commodity during the year.
The company has bought 100% shareholding of UEL International FZE in order to strengthen its hold abroad. This company deals in sugar, spices and textiles.
Despite the increasing competition in this segment, the company is recognized in the industry. It has been getting repeat orders from its customers. Its customers are spread all over the world. The company is currently planning to set up a procurement office in Australia to save on shipping costs.
If we look at the balance sheet of the company, the performance of the company has been good in the last three years. During this period both the company’s income and profit have increased. This is a completely fresh issue which makes it look attractive. Investors can invest in it for long term.
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