Umiya Tubes Ltd IPO review (Subscribe)

Review By Dilip Davda on Mar 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.


Conclusion / Investment Strategy

This being at par issue, fund surplus risk savvy investors may consider long term investment.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Mar 17, 2016

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the past, SME IPOs drew the attention of investors across the board. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at own risk. The above information is based on information available as on date coupled with market perceptions. The Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com

Umiya Tubes IPO FAQs

  1. 1. Why Umiya Tubes IPO?

    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.

  2. 2. How is Umiya Tubes IPO?

    Read the Umiya Tubes IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Umiya Tubes IPO what should investors do?

    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 in the above answer.

  4. 4. Is Umiya Tubes IPO good?

    Our recommendation for Umiya Tubes IPO is to subscribe.

  5. 5. Is Umiya Tubes IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Umiya Tubes IPO.

  6. 6. When will Umiya Tubes IPO allotment status?

    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.

  7. 7. When will Umiya Tubes IPO list?

    The Umiya Tubes IPO will list on Friday, April 1, 2016, at BSE SME.








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