HMA Agro grey market premium triples over weekend; should you expect any fireworks on debut?

HMA Agro Industries is gaining some momentum in the grey market, just a day ahead of its listing. The frozen meat exporter is scheduled to debut at Dalal Street on Monday and if one goes by the trends in the grey market, the company is likely to deliver a mild listing pop to the investors.

Last heard, the grey market premium of HMA Agro surged from Rs 12-15 apiece to Rs 40-45 per equity share on Monday, hinting towards mild gains at the debut on Tuesday. Its premium in the unofficial market has more than tripled over the weekend before listing.

According to the market experts, the robust broader market sentiments with benchmark indices scaling new highs and aggressive bidding for the recently concluded IPOs are supporting the sentiments of HMA Agro too. The stock may delivery a positive surprise on listing, they said.

HMA Agro saw a decent subscription of 1.62 times, said Ravi Singh, Vice President and Head of Research, Share India. "However, the recent update the grey market premium of the IPO suggests a slightly positive listing on the exchange. We advise investors to hold their subscription from medium term perspective."

HMA Agro's Rs 480-crore initial public offer (IPO) received a mixed response from the investors during the bidding process, with an overall subscription of 1.62 times. The issue was open for subscription between June 20-23 in the price range of Rs 555-585 per share.

The portion for qualified institutional bidders was booked 1.74 times, while the non-institutional investors' category was subscribed 2.97 times. The quota reserved for retail investors was only subscribed 96 per cent during the four-day bidding process.

HMA Agro Industries is one of the largest exporters of buffalo meat in India, accounting for more than 10 per cent of India’s export of frozen buffalo meat. Its products are self-branded, packaged under the brand name 'Black Gold', 'Kamil' and 'HMA' and exported to over 40 countries.

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