Uma Converter Limited IPO

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i. Uma Converter is engaged in manufacturing flexible packaging material which is multi-functional and caters to the packaging requirements of various industries. Their products are crafted out of an extensive range of industry approved materials such as polyethylene terephthalate, biaxially-oriented polypropylene, polythene, cast polypropylene, foil, paper, bio-degradable films, etc. Since, flexible packaging material predominantly consists of plastic as a major raw material, we aim to manufacture our products sustainably by aiming towards “Reuse, Recycle and Upcycle”.

ii. In order to ensure that the manufacturing operations remain sustainable, they have executed various memorandums of understanding with third parties for collection, segregation, transportation, recycling and disposal of plastic waste. They have also executed a service agreement with Ambuja Cements Limited for disposal of plastic waste in an environmentally friendly manner in the cement kiln process at high temperatures and long residence time, while simultaneously manufacturing cement of desired quality. We have obtained necessary licenses and approvals and have made applications seeking approval for using plastic in our manufacturing process in both our manufacturing units.

iii. Uma ConverterTheir product portfolio largely consists of multi-color pouches, stand-up pouches, zip-lock pouches, vacuum pouch, paper bag, e-commerce bag, etc. Over the years, the company has offered cost effective and customized flexible packaging solutions in accordance with the standardized sizes, designs of the customer requirements, coherent with the latest technological advances within the industry. They manufacture packaging material suitable for packaging products manufactured in food and beverage industry, e-commerce industry, pharmaceutical industry, hygiene and personal care industry, household industry and agricultural industry.

Competitive Strengths

i. Integrated manufacturer of flexible packaging material with long standing market presence.
ii. Wide-spread domestic market presence
iii. Presence across diverse industry verticals with long standing relationship with our customers.

Objects of the Uma Converter Limited IPO:

The company proposes to utilize the Net Proceeds from the Issue towards the following objects: 1. Funding the Working Capital Requirements of the Company. 2. General Corporate Purposes.
RHP of Uma Converter Limited IPO

Uma Converter Limited IPO Details:

Open Date: Dec 15 2022
Close Date: Dec 21 2022
Total Shares: 5,580,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue
Issue Size: 18.41 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 33 Per Equity Share
Listing At: NSE Emerge
Listing Date: Dec 29 2022

Promoters And Management:

Sumer Raj Lodha, aged 65 years, is the Chairman of the Board, the Managing Director and one of the Promoters of the Company who has been associated with the Company since its inception. He holds a bachelor’s degree in arts from Jodhpur University and has an experience of over three decades in the packaging industry. He played an instrumental role in expansion of the production capacities and setting up of the additional manufacturing unit. He is one of the founding members of the Company and is one the leading lights, in giving us a sense of direction and growth in the overall packaging industry. His direct connect with the top two levels of leadership at the managerial level and at the production facilities have been instrumental in employee connect and outreach, which has resulted in stability and retention of the best talent. Nirmala Lodha, aged 59 years, is an Executive Director and one of the Promoters associated with our Company since its inception. She has an experience of about three decades in the packaging industry. She has associated with the Company since its inception and is one of the founding members of our Company. She has played an instrumental role in expanding the business operation and in setting up of the additional manufacturing unit in Gujarat. She is responsible for supervising the human resource and administration department of the Company. Abhishek Sumerraj Lodha, aged 36 years, is the Whole-time Director and one of the Promoters of the Company. He holds a bachelor’s degree in engineering from RMIT University, Australia and has been associated with the Company since the year 2015 in the capacity of a director. He has been the driving force expansion of units in Gujarat state. The two manufacturing units are run under his direct guidance and leadership. His knowledge and expertise help the Company in achieving the desired production efficiency thereby resulting in lower wastage in manufacturing activity. He oversees and supervises the production and the human resource management of the Company. He was designated as the Whole-time Director of the Company with effect from April 01, 2021 in the meeting of the Board of Directors dated April 20, 2021 and the Extra-ordinary General Meeting of the Shareholders dated May 20, 2021.

Financials of Uma Converter Limited IPO:

Particulars (Fig. In Cr) 2022 2021 2020
Revenue from Operations 187 158 104
Cost Of Material Consumed 127 111 72
Purchase of Stock-in -trade 16 8 5
Change in Inventories -11 -6 -4
Manufacturing Expenses 16 14 9
Employees Benefit Expense 16 13 9
Other Expenses 5 4 2
EBITDA 18 14 11
OPM% 9.63% 8.86% 10.58%
Other Income 0 1 0
Depreciation 5 5 3
Finance Cost 6 5 4
PBT 7 5 4
Tax 2 1 1
PAT 5 4 3
No. of Shares 2.02 2.02 2.02
EPS 2.47 1.98 1.48

Comparison With Peers:

Name Of The Company Revenue (in Cr) Profit (in Cr) EPS P/E CMP MCap (In Cr)
Essal Propack Limited 3,433 221 6.79 28.7 168 5,348
Uflex Limited 13,127 1,099 152 3.28 571 4,123
Mold-Tek packing Limited 178 17 5.68 41.7 950 3,076
Huhatamaki PPl Limited 2,625 -23 -3 79.2 202 1,522
Uma Converter Limited 187 5 2.47 13.36 33 66.66

Recommendation on Uma Converter Limited IPO:

Review and Recommendation of Uma Converter Limited IPO is 5/10 1. With an installed capacity of 720 metric tonnes per year, UMA Converter was established in 1999 with the goal of making flexible packaging material. Up to Year 2019, the company's installed capacity has been raised from 720 metric tonnes per year to 6,000 metric tonnes per year, steadily expanding its business activities. 2. They are engaged in manufacturing flexible packaging material which is multi-functional and caters to the packaging requirements of various industries. 3. Since, flexible packaging material predominantly consists of plastic as a major raw material, we aim to manufacture our products sustainably by aiming towards “Reuse, Recycle and Upcycle. 4. The company has 2 manufacturing units in Gujarat. 5. They also export the finished products to countries such as Saudi Arabia, Australia, Senegal and the United States of America. 6. Revenue has increased from 104 Crores in Fy20 to 187 Crores in Fy22. 7. EBITDA has increased from 11 Crores in Fy20 to 18 Crores in Fy22. 8. EPS of Fy22 is 2.47, so, P/E of the IPO is 13.36.

Lead Manager of Uma Converter Limited IPO:

  1. GYR CAPITAL ADVISORS PRIVATE LIMITED

Registrar of Uma Converter Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Uma Converter Limited Block No. 868, Near CNG Petrol Pump, Santej Road, Village - Santej, Taluka - Kalol, Gandhinagar- 382 721, Phone: +91 93 2710 3652 Email: cs@umaconverter.com Website: http://www.umaconverter.com/

Discussion on Uma Converter Limited IPO:

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    Uma Converter IPO final subscription details –

    Non – Institutional Buyers 15.50 times
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    TOTAL SUBSCRIPTION 16.66 times

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