Uma Converter SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 15 Dec 2022 – 21 Dec 2022
- Listing date
- 29 Dec 2022
- Face value
- ₹10 per share
- Issue price
- ₹33 per share
- Lot size
- 4,000 shares
- Total issue size
- ₹18.41 Cr
- Market cap at offer price
- ₹66.91 Cr
- Promoter holding
- 95.00% → 68.86% pre-issue → post-issue
- ISIN
- INE067901012
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- GYR Capital Advisors Pvt.Ltd.
- Registered office
- Block No.868, Near CNG Petrol Pump, Santej Road, Village-Santej, Taluka-Kalol, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 3,00,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹33
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,32,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,64,000 |
| S-HNI (max) | 7 | 28,000 | ₹9,24,000 |
| B-HNI (min) | 8 | 32,000 | ₹10,56,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.37 | — |
| P/E (×) | 9.79 | — |
| Market cap | — | ₹66.91 Cr |
Key performance indicators
- Return on net worth
- 10.28%
- ROCE
- 9.42%
- Debt / equity
- 1.54
- PAT margin
- 3.70%
- EBITDA margin
- 8.88%
- NAV per share
- ₹29.36
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Uma Converter SME
Uma Converter Limited was incorporated as Uma Converter Private Limited on June 18, 1999 and converted to a public limited company on September 27, 2018. The company is engaged in manufacturing flexible packaging material which is multi-functional and caters to the packaging requirements of various industries. The company's product portfolio consists of multi-color pouches, stand-up pouches, zip-lock pouches, vacuum pouches, paper bags, and e-commerce bags. It manufactures packaging material suitable for food and beverage industry, e-commerce industry, pharmaceutical industry, hygiene and personal care industry, household industry and agricultural industry. The company operates two manufacturing units in Gujarat—Unit-I at Santej (operational since 1999) and Unit-II at Timba (operational since 2018). Apart from direct sales, the company also undertakes manufacturing and various printing and lamination processes on a job work basis.
Company Analysis
from RHPUma Converter Limited manufactures flexible packaging material for food and beverage, e-commerce, pharmaceutical, hygiene and personal care, household, and agricultural industries.
Uma Converter Limited was incorporated as Uma Converter Private Limited on June 18, 1999 and converted to a public limited company on September 27, 2018. The company is engaged in manufacturing flexible packaging material which is multi-functional and caters to the packaging requirements of various industries. The company's product portfolio consists of multi-color pouches, stand-up pouches, zip-lock pouches, vacuum pouches, paper bags, and e-commerce bags. It manufactures packaging material suitable for food and beverage industry, e-commerce industry, pharmaceutical industry, hygiene and personal care industry, household industry and agricultural industry. The company operates two manufacturing units in Gujarat—Unit-I at Santej (operational since 1999) and Unit-II at Timba (operational since 2018). Apart from direct sales, the company also undertakes manufacturing and various printing and lamination processes on a job work basis.
Objects of the Issue
- Funding the working capital requirements of the company ₹1,081.55 Lakhs p.20
- General corporate purposes ₹460.35 Lakhs p.20
- Funding the working capital requirements of the company ₹1,081.55 Lakhs p.91
- General corporate purposes ₹460.35 Lakhs p.91
- General corporate purposes p.4
Issue Structure
- Total Issue
- ₹1,841.40 Lakhs
- Fresh Issue
- ₹1,841.40 Lakhs (55,80,000 Equity Shares of ₹10 each at ₹33 per share)
- Offer for Sale
- Nil
- Price Band
- ₹33 per Equity Share (Fixed Price)
- Lot Size
- 4,000 shares (Market lot) and in multiples of 4,000 thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company manufactures flexible packaging material and sells directly to customers in various industries. It also provides job work services including printing and lamination processes for third parties. The company follows an integrated business model providing end-to-end capabilities from developing and devising appropriate packaging material, designing packages based on product nature, and manufacturing final finished packaging material.
Business Segments
SWOT Analysis
- • Critical labour force for competitive positioning(p.48)
- • Insurance coverage protecting operational assets(p.48)
- • Integrated manufacturer with R&D, Design and Quality divisions providing end-to-end packaging solutions(p.144)
- • Long-standing market presence of over two decades with established customer loyalty(p.144)
- • International quality certifications (ISO 9001:2015, ISO 22000:2018, FSSC 22000)(p.144)
- • Diversified customer base across multiple industries (food & beverage, e-commerce, pharmaceutical, hygiene, household)(p.145)
- • In-house design capabilities and award-winning design division(p.147)
- • Sustainable business model with waste recycling and renewable energy initiatives(p.148)
- • Experienced management team with strong background in packaging industry(p.148)
- • Long operational history and manufacturing expertise in flexible packaging(p.170)
- • Multiple quality certifications and accreditations (ISO 9001, ISO 22000, FSSC 22000)(p.172)
- • Established production capacity across two manufacturing units(p.172)
- • Growing revenue and profitability trajectory(p.172)
- • Diversified customer base including major e-commerce and FMCG brands(p.172)
- • No material time and cost overruns in project execution(p.173)
- • Single-segment manufacturing focus with established production capacity(p.236)
- • Consistent profitability and revenue growth trajectory(p.260)
- • Operational scale and manufacturing infrastructure across multiple units(p.256)
- • Established export presence generating diversified revenue(p.237)
- • Dependence on contract labour with potential absorption liability(p.48)
- • Risk of forced regularization of contract labour increasing payroll costs(p.48)
- • Exposure to workplace accidents and litigation liability(p.48)
- • No certainty on insurance claim recovery for accidents(p.48)
- • Working capital intensity constraining dividend capacity(p.49)
- • Vulnerability to employee pilferage and cash management risks(p.49)
- • Dependence on unverified third-party industry data(p.50)
- • Significant dependence on top 5 customers (70% of revenue)(p.155)
- • High dependence on top 5 suppliers (59.35% of procurement)(p.155)
- • Declining capacity utilization (38.25% as of September 2022)(p.156)
- • Limited geographic presence restricted to Gujarat manufacturing units(p.155)
- • Part of manufacturing unit involved in ongoing litigations(p.158)
- • Dependence on promoter-related entities and concentrated promoter shareholding(p.187)
- • Limited formal dividend distribution policy(p.193)
- • Significant financial leverage from loans and borrowings(p.219)
- • Dependence on promoters' personal properties as collateral for secured loans(p.180)
- • High attrition in key managerial personnel positions(p.185)
- • Significant dependence on borrowed funds and high debt burden(p.238)
- • Substantial contingent liabilities from bank guarantees and counter-guarantees(p.236)
- • Litigation involving promoters and company relating to land encroachment(p.271)
- • Pending regulatory inquiry regarding EPCG export obligations(p.270)
- • Worker safety incident and pending compensation claim(p.271)
- • Utilization of IPO proceeds for working capital expansion(p.91)
- • Benefits from listing including brand enhancement and public market creation(p.91)
- • Strong industrial recovery and manufacturing growth prospects(p.112)
- • Expanding domestic flexible packaging market expected to grow at 18% CAGR to reach ₹0.014 lakh crore by FY 2023(p.118)
- • Overall Indian packaging industry projected to grow at 23.05% CAGR during 2020-2025(p.115)
- • Strong growth in e-commerce segment with packaging demand rising at 19.04% CAGR(p.135)
- • Rising demand for flexible packaging in food and beverage sector due to changing lifestyles and e-commerce(p.119)
- • Growing FMCG sector expanding at 23.15% CAGR expected to reach US$ 0.104 lakh crore by FY 2021(p.129)
- • Expanding pharmaceutical sector projected to grow at 13-15% over next five years driving packaging demand(p.133)
- • Government initiatives and Make in India campaign supporting packaging sector growth(p.140)
- • Expansion into e-commerce and non-FMCG packaging segments(p.172)
- • Geographical expansion through additional manufacturing units(p.172)
- • Capacity utilization growth and scale efficiency improvements(p.172)
- • Technology adoption to enhance operational efficiency(p.172)
- • Post-COVID demand surge in packaging materials across multiple end-user sectors(p.257)
- • Growing end-market demand across food, e-commerce, pharmaceutical and hygiene sectors(p.256)
- • Capacity expansion and capital investment programs underway(p.264)
- • Renewable energy adoption reducing operational costs(p.279)
- • Labour unrest disrupting operations(p.48)
- • Wage inflation from government-mandated minimum wage increases(p.48)
- • Foreign exchange volatility impacting costs and operations(p.49)
- • Inflation eroding profit margins(p.57)
- • COVID-19 and pandemic risks to operations and demand(p.52)
- • Economic slowdown reducing customer demand(p.55)
- • Regulatory and tax law uncertainties(p.55)
- • Natural disasters and geopolitical risks(p.57)
- • High raw material costs due to heavy reliance on crude oil imports and exchange rate volatility(p.139)
- • Highly competitive and fragmented industry with low margins under pressure during downturns(p.139)
- • Lack of domestic technology requiring expensive imported machinery with 7.5% customs duty(p.139)
- • Government restrictions on single-use plastics and increasing environmental regulations(p.140)
- • Recycling challenges for multi-material flexible packaging films(p.139)
- • Limited per capita packaging consumption in India with low market penetration compared to developed nations(p.137)
- • Extensive regulatory compliance requirements across multiple labour and industrial laws(p.169)
- • Price volatility and potential margin pressure from raw material costs(p.199)
- • Competitive pressures in the flexible packaging industry(p.171)
- • Exposure to foreign exchange and interest rate fluctuations(p.228)
- • Dependence on customer concentration in specific sectors(p.170)
- • Intense competition from organized and unorganized sector players with pricing pressure(p.257)
- • Low entry barriers enabling capacity expansion by competitors intensifying competition(p.257)
- • Vulnerability to transportation and logistics disruptions affecting profitability(p.257)
- • Exposure to raw material price volatility and input cost inflation(p.262)
- • Foreign exchange rate fluctuations impacting export competitiveness and receivables(p.237)
- • Economic cyclicality and demand volatility from global pandemic and macroeconomic shocks(p.257)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sumer Raj Lodha | Promoter | 27.54% | — |
| Nirmala Lodha | Promoter | 38.46% | — |
| Abhishek Sumerraj Lodha | Promoter | 17.97% | — |
| Sumer Raj Lodha | Promoter | 27.54% | 19.96% |
| Nirmala Lodha | Promoter | 38.46% | 27.87% |
| Abhishek Sumerraj Lodha | Promoter | 17.97% | 13.02% |
| Sharadha Abhishek Lodha | Promoter Group | 5.17% | 3.75% |
| Sumer Raj Lodha and Sons (HUF) | Promoter Group | 4.00% | 2.90% |
| Abhishek Lodha and Sons (HUF) | Promoter Group | 1.11% | 0.81% |
| Sumer Raj Lodha | Promoter | — | — |
| Nirmala Lodha | Promoter | — | — |
| Abhishek Sumerraj Lodha | Promoter | — | — |
| Sumer Raj Lodha | Promoter | 27.54% | — |
| Nirmala Lodha | Promoter | 38.46% | — |
| Abhishek Sumerraj Lodha | Promoter | 17.97% | — |
| Sumer Raj Lodha | Promoter | — | — |
| Nirmala Lodha | Promoter | — | — |
| Abhishek Lodha | Promoter | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.