Uma Exports sets IPO price band at Rs 65-68 a share

Uma Exports Ltd has set the price band for its public issue at Rs 65-68 a share. The company had earlier said its IPO will open on March 28 and close on March 30. It plans to list on exchanges on April 7.

Initiation of refunds and credit of equity shares to demat accounts of allottees will be on April 5.

Uma Exports plans to raise around Rs 60 crore through the public issue and utilise Rs 50 crore out of this to fund its working capital requirements. As of March 2021, it had a total sanctioned limit of working capital facilities of Rs 85 crore, including fund-based and non-fund-based limits.

The company is engaged in trading and marketing of agricultural produce and commodities 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 soybean meal and rice bran de-oiled cake.

It imports lentils, faba beans, black urad dal and tur dal in India in bulk quantities. Its major imports are from Canada, Australia and Burma.  It primarily exports sugar to Sri Lanka, the UAE and Afghanistan and corn to Bangladesh.

Uma Exports is in process of setting up a procurement office in Australia through a wholly owned subsidiary which will allow it to procure the commodities directly in Australia and dispatch directly to various global locations. It will help Uma to save costs like freight and import duties and thereby improve its profitability, said the draft papers filed with the markets regulator in September 2021.

For FY21, its total income stood at Rs 752.03 crore as against Rs 810.31 crore a year ago. Net profit for the period stood at Rs 12.18 crore versus Rs 8.33 crore last year. EBITDA stood at Rs 21.25 crore from Rs 19.75 crore a year ago. Total debt for the period stood at Rs 42.14 crore.