Umiya Mobile Limited’s Initial Public Offering (IPO) opened for subscription on 28th July 2025 and is set to close on 30th July 2025. The company aims to raise ₹24.88 crore through a fresh issue of 37.70 lakh shares at a fixed price of ₹66 per share. The shares will be listed on the BSE SME exchange with a tentative listing date of 4th August 2025.
This IPO offers a chance to invest in a rapidly growing retail and distribution company in the mobile and electronics space. However, the Grey Market Premium (GMP) stands at ₹0 as of 28th July, suggesting cautious market sentiment.
With a high retail entry point of ₹2,64,400 (for 2 lots of 4,000 shares), this SME IPO is targeted at more serious investors. In this comprehensive 2000-word analysis, we explore Umiya Mobile’s business model, financials, GMP trends, and what Day 2 might hold for potential investors.
IPO Overview
Key IPO Details
| Detail | Information |
|---|---|
| Issue Type | Fixed Price Issue |
| IPO Price | ₹66 per share |
| Face Value | ₹10 per share |
| Issue Size | ₹24.88 crore |
| Fresh Issue | 37,70,000 equity shares |
| Listing Platform | BSE SME |
| Lot Size | 2,000 shares per lot |
| Minimum Investment (Retail) | 2 lots = 4,000 shares = ₹2,64,400 |
| IPO Open Date | 28th July 2025 |
| IPO Close Date | 30th July 2025 |
| Allotment Date | 31st July 2025 |
| Refund Initiation | 1st August 2025 |
| Listing Date | 4th August 2025 |
| Registrar | Bigshare Services Pvt Ltd |
Umiya Mobile’s IPO is entirely a fresh issue, meaning the company will retain all funds raised for growth and operational needs.
GMP Trends and Analysis
The Grey Market Premium (GMP) reflects unofficial trading of IPO shares before official listing. It serves as an early indicator of listing expectations.
GMP Table for Umiya Mobile IPO:
| Date | GMP Price | Estimated Listing Price | Estimated Gain |
|---|---|---|---|
| 28-07-2025 | ₹0.00 | ₹66.00 | 0.00% |
| 27-07-2025 | ₹0.00 | ₹66.00 | 0.00% |
| 26-07-2025 | ₹0.00 | ₹66.00 | 0.00% |
| 25-07-2025 | ₹0.00 | ₹66.00 | 0.00% |
The lack of a GMP premium suggests the market is yet to develop strong listing expectations for Umiya Mobile. This might be due to:
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Thin EBITDA margins
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Competitive industry
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Limited brand recall beyond Gujarat
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High minimum investment
Nonetheless, a flat GMP does not necessarily imply poor fundamentals. It simply shows limited speculative interest at this stage.
Day 2 Subscription Outlook
Day 1 Summary
Day 1 of the IPO saw lukewarm participation, mainly due to the high capital requirement and zero GMP. However, things can shift on Day 2 as:
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HNIs (High Net-Worth Individuals) often enter toward the middle of the IPO timeline.
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Retail investors familiar with the brand in Gujarat may apply in the later stages.
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Low float and strong financials may attract value-based investors.
Day 2 Expectations
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Retail Category: Mild uptick in subscriptions due to brand loyalty and regional presence.
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HNI/NII Category: Could gain momentum as many wait for initial GMP trends to stabilize.
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Total Subscription: May cross 40%–50% by end of Day 2 if investor confidence improves.
The final day (30th July) will be crucial in determining whether the IPO is oversubscribed or closes with marginal interest.
Utilization of IPO Proceeds
The proceeds from the ₹24.88 crore issue will be used for:
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Debt Repayment: To reduce interest burden and improve debt-equity ratio.
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General Corporate Purposes: Includes expansion, admin costs, and marketing.
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Working Capital Requirements: Inventory procurement, supply chain management.
While the utilization plan is conservative, it reflects prudent capital allocation for an SME. The absence of a tech upgrade or aggressive store expansion may, however, temper enthusiasm.
Financial Performance (Revenue & PAT)
Umiya Mobile has posted consistent revenue and profit growth over the past two years.
| Financial Metric | FY24 (₹ Cr) | FY25 (₹ Cr) | Growth YoY |
|---|---|---|---|
| Revenue | ₹451.58 | ₹601.28 | 33.12% |
| PAT | ₹2.35 | ₹5.66 | 140.85% |
This performance reflects:
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Strong demand for mobile phones and accessories
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Operational efficiencies at scale
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Expansion of store footprint
Despite being in a low-margin segment, the company managed to more than double its profit in FY25.
Technical Analysis & Key Ratios
| Indicator | Pre-Issue | Post-Issue |
|---|---|---|
| PE Ratio | 12.18 | 16.57 |
| EPS (₹) | 5.42 | 3.98 |
| RoNW (%) | 40.51 | TBD |
| ROE (%) | 50.79 | TBD |
| ROCE (%) | 27.64 | TBD |
| EBITDA Margin (%) | 1.83 | TBD |
| Price-to-Book Value | 4.93 | TBD |
| Market Capitalization | ₹93.85 Cr. | ₹93.85 Cr. |
These numbers highlight:
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High return ratios for a retail business
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Modest valuation compared to peers
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Lean cost structure
The only concern is the thin margin profile (EBITDA at 1.83%), which could be affected by pricing wars or OEM policy changes.
Peer Comparison
| Company | EPS | PE Ratio | RoNW (%) | Revenue (₹ Cr) |
|---|---|---|---|---|
| Umiya Mobile Ltd | 5.42 | 12.18 | 40.51 | ₹601.28 |
| Bhatia Communications | 1.10 | 20.78 | 20.89 | ₹415.00 |
| Fonebox Retail | 4.43 | 21.44 | 13.88 | ₹298.00 |
| Jay Jalaram Technologies | 5.62 | 24.34 | 23.21 | ₹543.00 |
Umiya Mobile stands out with:
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Lowest PE ratio
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Highest RoNW
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Highest revenue in the peer group
This positions it attractively from a value investing standpoint.
SWOT Analysis
Strengths
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Strong revenue and PAT growth
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Excellent return ratios
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Low debt and healthy balance sheet
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Competitive pricing in IPO
Weaknesses
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High capital needed for retail entry (₹2.64 lakh)
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Low margins
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No visibility into digital strategy or tech investment
Opportunities
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Expanding mobile penetration in Tier II/III cities
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Potential to enter online/offline hybrid model
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Franchising for pan-India scale
Threats
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OEM pricing dependencies (Apple, Samsung, etc.)
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Competition from national chains like Croma, Reliance Digital
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Price wars and GST impacts
Registrar & Allotment Process
Registrar: Bigshare Services Pvt Ltd
📧 Email: ipo@bigshareonline.com
📞 Phone: +91-22-6263-8200
How to Check Allotment:
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Visit bseindia.com/investors
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Navigate to IPO allotment section
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Select “Umiya Mobile IPO”
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Enter PAN or application number
Allotment results will be published on 31st July 2025.
Expert Opinions
| Analyst/Firm | Verdict | Comment |
|---|---|---|
| Univest | Neutral | Good financials, zero GMP is a concern |
| SME Review Board | Positive on Long-Term | Valuation is attractive |
| Independent Brokerages | Watch and Wait | Wait for Day 2 data before applying |
There is a consensus on the company’s financial soundness, but experts remain cautious due to lack of excitement in grey markets.
Listing Day Outlook
Scenarios:
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GMP stays at ₹0: Stock likely lists flat at ₹66.
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GMP rises to ₹3–₹5 on Day 3: Stock may list at ₹69–₹71.
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Strong last-day subscriptions: May push listing toward ₹72–₹74.
However, volatility on Day 1 post-listing is common in SME IPOs due to limited float and low liquidity.
Investment Verdict
Apply If You:
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Are a long-term investor comfortable with SME risks
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Appreciate strong RoE and undervaluation
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Understand electronics retail growth in Bharat
Avoid If You:
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Seek quick listing gains (GMP is nil)
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Have limited liquidity
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Expect high-margin tech businesses
Umiya Mobile has fundamentals in its favor, but investors should keep expectations grounded for listing-day returns.
Conclusion
Umiya Mobile IPO presents a financially healthy SME with impressive return ratios and revenue growth. The lack of grey market interest may deter speculative players, but it also opens a window for long-term value investors.
With Day 2 underway, investor behavior in HNI and retail categories will determine final oversubscription levels. A watchful approach on Day 2 is advised, with more clarity expected by the end of the bidding window.
Final Call: Long-term investors may consider applying. Short-term traders should wait for Day 3 cues.
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