Uma Converter files IPO papers with SEBI. Uma Converter Limited has filed preliminary papers for its Initial Public Offering (IPO) with markets regulator SEBI on June 30, 2021. According to the draft red herring prospectus, the Equity Shares outstanding before the Issue constitute 1,46,94,286 Equity Shares and the IPO comprises of fresh issue of equity shares aggregating up to Rs 3,600 lacs.
GYR Capital Advisors Private Limited is the Book Running Lead Manager to the Issue. The net proceeds of the issue will be utilised towards inter alia expansion of the business of the Company by upgrading its manufacturing facility situated at Timba, Gujarat and repayment or prepayment of unsecured loans.
Uma Converter Limited commenced its business operations in 1999, in manufacturing flexible packaging material. The company has two manufacturing with a combined manufacturing facility of 1,800 metric tones per annum. Post-Issue the company intends to enhance the capacity of one of its manufacturing facility to 9,000 MTPA.
The net turnover reported by the Company in the year 2018 and 2019 was Rs. 9,014.05 lakhs and Rs 10,439.09 lakhs, respectively. During the year 2020 and for the nine months ended December 31, 2020, the company reported a net turnover of 10,359.10 lakhs and 11,782.98 lakhs, respectively and net profit after tax and depreciation of 274.21 lakhs and 425.12 lakhs, respectively. Presently the company has a widespread domestic presence in 17 states and is also exporting finished products to countries such as Saudi Arabia, Australia, Senegal and the United States of America.
Flexible packaging material is among the fastest-growing packaging segments in India, as those are multi-functional and caters to the packaging requirements of various industries. With an integrated business model, the company is engaged in developing, devising the appropriate packaging material, designing the package based on the nature of the product and lastly manufacturing the final finished packaging material.
Packaging is among the high-growth industries in India. The Indian Packaging Industry is expected to grow at a CAGR of 23.05%, as the industry is expected to grow from US$ 0.073 lakh crore in FY 2020 to US$ 0.205 lakh crore in FY 2025. The Asia Pacific region is forecasted to grow at 4.30% whereas Africa and the Middle East combined is set to grow at 5.30%.