Umiya Mobile comes with IPO to raise Rs 24.88 crore

Umiya Mobile

• Umiya Mobile came out with an initial public offering (IPO) of 37,70,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 66 per equity share.
• The issue has opened on July 28, 2025 and will close on July 30, 2025.
• The shares will be listed on SME Platform of BSE.
• The share is priced at 6.60 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Smart Horizon Capital Advisors.
• Compliance Officer for the issue is Vinay B Karkera.

Profile of the company

Umiya Mobile, established in 2012, is a player in the multi-brand retail sector, specializing in the sale of smartphones, mobile accessories, and consumer durable electronic products, etc. Over the years, the company has built a reputation as a trusted retailer offering a wide array of products from some of the global brands. Its product range includes the latest smartphones from Apple, Samsung, Realme, Xiaomi, Oppo, Vivo, Motorola, Google Pixel, Infinix etc. It also offers consumer electronics, such as Smart TVs, Air Conditioners, Refrigerators, Coolers, and more, from brands like Sony, LG, Panasonic, Godrej and others.

The company operates a total of 149 stores across the state of Gujarat and 69 stores in Maharashtra and in One Union Territory of Dadra and Nagar Haveli and Daman and Diu, providing it with a widespread geographic presence and accessibility to a large customer base. In line with its commitment to making its products accessible to a broader customer base, it offers credit/EMI facilities to customers through tie-ups with credit houses like banks and financial institutions. These financing options make it easier for customers to purchase quality mobile phones and electronics, enhancing the overall shopping experience and increasing accessibility.

To foster long-term relationships with its customers, it also provides after-sales services for mobiles and other consumer durables. These services are available at both its owned stores and retail outlets, ensuring that its customers can rely on it for maintenance, repairs, and support after their purchase. Furthermore, it ensures that all electronic products come with warranties from the respective manufacturers. In the event of a defect, it has established a seamless process with its suppliers to ensure that customers receive free replacements or servicing, further reinforcing its commitment to quality and customer satisfaction.

Proceed is being used for:

• Repayment or prepayment, in full or in part, of borrowings availed by the company from banks and financial institutions
• General corporate purposes

Industry Overview

Electronics industry is the world’s largest and fastest growing industry and is increasingly finding application in all sectors of the economy. The government’s support for the electronics industry has been strong, with numerous conducive policies. The government of India is focusing on manufacturing electronics hardware within India, which seems to be the conceptual origin for both the Make in India and the Digital India programmes. These initiatives encourage domestic manufacturing and exports across the electronics system design and manufacturing (ESDM) value chain. Today India’s production of electronics is estimated at $90 billion and export is estimated to be $23 billion.

India has emerged as the second largest manufacturer of mobile phones in the world. Over 200 units are manufacturing cellular mobile phones and parts / components thereof in the country, up from only 2 units in 2014. The domestic demand is almost completely being met out of domestic production. India which was importing 90 per cent of its mobile phones till 2014 is now catering to 97 per cent of all mobile phones that are consumed in India. The electronics sector of India contributes around 3.4% of the country’s Gross Domestic Product (GDP). The government has committed nearly $17 billion over the next six years across various incentive schemes to grow the industry. The Government of India has also worked on making the county investor-friendly and has been laying out the red carpet for manufacturing companies. By 2026, India has laid out a goal of $300 billion of manufacturing and $120 billion of exports.

India sets ambitious targets, aiming to produce 1 billion mobile handsets valued at $190 billion by 2025, including 600 million handsets worth $110 billion earmarked for exports. Segmenting the ESDM sector into electronics systems and electronics design, its value stood at $90 billion in FY19. Notably, over 90% of global semiconductor companies have established R&D centers in India, contributing approximately $2.5 billion in revenue and generating 600,000 jobs. Positioned as one of the largest consumer electronics markets in the Asia Pacific Region, India is committed to achieving $300 billion in electronics manufacturing and $120 billion in exports by 2025-26. 

Pros and strengths

Multi-brand retailing and partnership opportunities: The company offers a wide range of products, including the latest smartphones from Apple, Samsung, Realme, Xiaomi, Oppo, Vivo, Motorola, Google Pixel, Infinix, and more. It also offers consumer electronics, such as Smart TVs, Air Conditioners, Refrigerators, Coolers, and more, from brands like Sony, LG, Panasonic, Samsung, Godrej, Bajaj, and others. Additionally, it provides small vendors with the opportunity to sell its products under various brand names, including Umiya, My Phone, and Phone Plus, once they meet specific criteria set for all brands. This approach makes it affordable for smaller businesses to partner with a well-established company without requiring large upfront investments, while also benefiting from competitive pricing, flexible terms, and the backing of Umiya's reputable brands.

Widespread distribution network: It sells its products through a total of 149 stores across the state of Gujarat and 69 stores across Maharashtra and in One Union Territory of Dadra and Nagar Haveli and Daman and Diu, offering mobile phones, allied accessories, and other consumer durable home appliances. Out of these, 20 stores are owned stores, while 199 stores follow the retail outlet model. These stores are spread across 26 cities in Gujarat and 17 cities in Maharashtra and in One Union Territory of Dadra and Nagar Haveli and Daman and Diu. Its extensive network ensures a broad geographical presence, covering a wide range of cities in both Gujarat and Maharashtra.

Strategic location and facilities: Its retail stores are located in busy, popular areas, making it easy for customers to visit at any time of the day, whether on weekdays or weekends. Each store has a product display section where customers can try out products before buying them, ensuring they feel confident in their purchase. These carefully selected locations and the chance to test products help it to attract a wide range of customers and provide them with an excellent shopping experience.

Risks and concerns

Major revenue comes from Gujarat: The company generates major portion of sales from State of Gujarat. The company has garnered 93.38%, 100.00% and 100.00% of its revenue from Gujarat in FY25, FY24 and FY23 respectively. Such geographical concentration of its business in this region heightens its exposure to adverse developments related to competition, as well as economic and demographic changes in these regions which may adversely affect its business prospects, financial conditions and results of operations.

Dependent on few numbers of suppliers for purchase of products: The company’s top ten suppliers contribute to 57.10% (Rs 33,657.54 lakh), 62.48% (Rs 27,324.74 lakh) and 72.89% (Rs 23,649.63 lakh) of its total purchases for the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023 respectively. The goods are procured depending on the availability and favourable terms. It cannot assure that it will be able to get the same quantum of supplies, or any supplies at all, and the loss of supplies from one or more of them may adversely affect its purchases of stock and ultimately its revenue and results of operations.

Business is subject to seasonal and cyclical volatility: It offers products at its stores that its consumers require, and its success is dependent on its ability to meet its consumers’ requirements. The retail consumer spending is heavily dependent on the economy and, to a large extent, on various occasions such as festivals like Diwali, Navratri, Raksha Bandhan etc., seasonal changes, weddings, etc. Any year also has phases of lean sales. It has historically experienced seasonal fluctuation in its sales, with higher sales volumes associated with the festive period in the third quarter of each Financial Year. It has also seen higher sales volume of products in a certain season. These seasonal variations in consumer demand subject its sector to a considerable degree of volatility.

Outlook

Umiya Mobile is a Rajkot-based retailer offering mobile phones, accessories, and home appliances. The company offers smartphones from Apple, Samsung, Realme, Xiaomi, and more, plus consumer electronics like Smart TVs, ACs, refrigerators, and coolers from Sony, LG, Panasonic, Godrej, etc. The company has multi-brand retailing and partnership opportunities with widespread distribution network. On the concern side, the company is dependent on few numbers of suppliers for purchase of products. Loss of any of these large Suppliers may affect its business operations. Moreover, it generates its major portion of sales from operations in certain domestic market. Any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.

The company came out with an IPO of 37,70,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 66 per equity share to mobilize Rs 24.88 crore. On performance front, revenue from operations increased by 33.15%, rising from Rs 45,148.40 lakh in fiscal 2024 to Rs 60,116.87 lakh in fiscal 2025. This growth was primarily driven by the company’s strategic expansion, which included the opening of new retail stores by broadening its presence in diverse locations. Moreover, the company reported a net profit of Rs 566.24 lakh in fiscal 2025, an increase from Rs 234.94 lakh in fiscal 2024.

The company currently sells through 219 stores spread across Gujarat, Maharashtra and Union Territory of Dadra and Nagar Haveli and Daman and Diu. Its plan is to improve the sales by opening retail stores in Tier 2 and Tier 3 towns. This will enable it to grab better market size. The market for its products is highly competitive on account of both the organized and unorganized players. Its market goodwill is significantly dependent on brand recall and its ability to compete effectively would significantly depend on its ability to promote and develop its brand. It proposes to increase the number of dealers in order to broaden its reach. Greater visibility of its brand would ensure brand retention in the minds of the customers and would in effect further enhance its reach.