The whole Rs. 18.41 crore Uma Converter IPO consisted of a fresh issuance of the IPO cash. Uma Converter Ltd.’s complete SME IPO involves the issuance of 55,80,000 shares at a price of Rs. 33 per share, for a total of Rs. 18.41 crore. Retail buyers can only bid in lots of 4,000 shares or less, which requires a minimum investment of Rs. 132,000 in the initial public offering (IPO). The stock has a face value of Rs. Additionally, that is the most amount a retail investor may apply for in the IPO. HNIs are allowed to bid in a minimum of 2 lots, each of which consists of 8,000 Uma Converter Ltd. shares and has an investment value of Rs. 264,000. According to the conditions of the offer, regular investors will receive 50% of the net offer, while HNIs would receive the remaining 50%. SMC Global Securities Limited will serve as the market maker for Uma Converter Ltd.’s SME IPO. It is a fixed price offering. The NSE SME sector will list it.
The issue’s subscription period began on December 15, 2022, and ends on December 21, 2022. (both days inclusive). On December 26, 2022, the basis for allocation will be confirmed, and on December 27, 2022, the reimbursement process will begin. The company is set to float on the NSE SME section on December 29, 2022, and the demat credits are anticipated to take place on December 28, 2022. In contrast to the mainboard, this is the section where IPOs of small and medium-sized businesses (SMEs) are cultivated. The grey market pricing (GMP) trading typically begins 4-5 days before the launch of the IPO and lasts until the listing day. We already have GMP data for the previous four days for Uma Converter Ltd, which should provide a decent indication of the upcoming listing.
The GMP of Uma Converter IPOis impacted by 2 things. First off, the GMP is greatly impacted by market circumstances, particularly how liquid the market is. Second, because it reflects investor interest in the stock, the size of the IPO subscription has a significant influence on the GMP. Technically speaking, GMP might also be negative, which would mean that the stock would list below its issue price.
Here, it’s important to keep in mind a little detail. The GMP is only a well-liked informal pricing point and not an official price point. However, it has generally been found to be a reliable informal indicator of supply and demand for the IPO. As a result, it does provide a general indication of how the listing is likely to go and how the stock’s performance will be after the listing.
GMP often serves as a reliable reflection of the true stock narrative. The GMP trend over time provides clues about which way the wind is blowing more so than the actual price. The GMP summary for Uma Converter Ltd for the last 4 days is shown below.
In the aforementioned instance, the GMP trend reveals that the grey market premium initially peaked at roughly Rs. 10, but has since fluctuated wildly between Rs. 2 and Rs. 6. Naturally, we must wait for the real subscription figures to come in when the issue opens for subscription and also keep track of the development, since it would have a very big influence on the GMP. In the past, stocks that had an IPO oversubscription also experienced a fairly significant improvement in pricing on the grey market. Uma Converter Ltd. has demonstrated strong momentum in the black market, to begin with.
If the pricing of Uma Converter Ltd.’s IPO is taken into account, which was set at Rs. 33, then the expected listing price is indicated by the GMP indicator to be about Rs. 39 per share on December 16th. This is dynamic and is always shifting. The subscription update on the stock will be one indicator to watch because it will show the future direction of the GMP.
The listing premium for Uma Converter Ltd over the listing price is a good 18.18% based on the GMP of Rs. 6 on a fixed IPO price of Rs. 33. That presumes that Uma Converter Ltd. would list on December 29, 2022, with an initial public offering price of around Rs. 39 per share. Naturally, they are estimates, so you must maintain a safety buffer. But that would depend on the GMP holding up over the next days as the issue launches. The greatest thing to do with the GMP is to carefully monitor the trend because that provides the finest indications of listing status. Prioritize the time series trend above the raw data.
Uma Converter Ltd. was established in 2000 and produces flexible packaging materials. Uma Converter’s product line includes stand-up pouches, zip-lock pouches, vacuum pouches, and many others. Uma Converter also implements different printing and laminating processes for outside parties on a job-by-job basis as part of its value-added services. It has a service contract with Ambuja Cement for the environmentally friendly disposal of plastic trash during the cement kiln process.
The food and beverage business, e-commerce, the pharmaceutical industry, the hygiene and personal care industry, and the agriculture industry all use its goods. In-house created technology are continuously improved by Uma Converter’s R&D section. Gujarat is where its two production facilities are situated. GYR Capital Advisors Ltd. will lead manage the Uma Converter Ltd. issuance, while Bigshare Services Private Limited will serve as the issue’s registrar.