Review By on March 17, 2016
Umiya Tubes Ltd (UTL) is engaged in the manufacturing of stainless steel pipes and tubes that are widely used in chemical plants, dairy plants, petrochemical plants, solvent extractions, gas and oil distribution, refrigeration, railways, automobile etc.
To meet its expansion plans, raise working capital and general corpus funds, the company is coming out with a maiden IPO of 2000000 equity shares of Rs. 10 each at par to mobilize Rs. 2 crore. Issue opens for subscription on 18.03.16 and will close on 22.03.16. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Issue is solely managed by Mehta Intigrated Finance Ltd and Purva Sharegistry (India) Pvt Ltd is the registrar to the issue. Shares will be listed on BSE SME post allotments. Post issue its current paid up equity capital of Rs. 5.4 crore will stand enhanced to Rs. 7.4 crore. All equity issues are made at par since inception.
On performance front, it has incurred losses for last two fiscals. Its P/E and NAV is negative. For FY 15 it has posted loss of Rs.0.32 crore on a turnover of Rs.8.35 crore. For first half of current fiscal it has reported loss of Rs. 0.09 crore on a turnover of Rs. 6.17 crore. Thus asking price is having negative P/E. Industry P/E average is 15 plus.
On merchant banker’s front, there is no track record and this is the maiden IPO from its stable.
This being at par issue, fund surplus risk savvy investors may consider long term investment.
Review By on March 17, 2016
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
The initial public offer (IPO) of Umiya Tubes Ltd. offers an early investment opportunity in Umiya Tubes Ltd.. A stock market investor can buy Umiya Tubes IPO shares by applying in IPO before Umiya Tubes Ltd. shares get listed at the stock exchanges. An investor could invest in Umiya Tubes IPO for short term listing gain or a long term.
Read the Umiya Tubes IPO recommendations by the leading analyst and leading stock brokers.
Umiya Tubes IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Umiya Tubes IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Umiya Tubes IPO?"
Our recommendation for Umiya Tubes IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Umiya Tubes IPO.
The Umiya Tubes IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Umiya Tubes IPO allotment status to check.
