HMA Agro IPO sails through on day 4; issue subscribed 1.11 times so far

HMA Agro Industries Its Rs 480 crore initial public offering (IPO) sailed through on Friday, the fourth and final day of the bidding process. The issue was subscribed about 1.11 times so far on the final day of the bidding process.

According to the data from the BSE, the investors made bids for 67,45,900 equity shares, or 1.11 times, compared to the 60,54,054 equity shares offered for the subscription by 12.15 pm on Friday, June 23.
 

The quota for non-institutional bidders was booked 2.27 times, whereas the allocation for qualified institutional bidders fetched 1.04 times bids. However, the portion for retail investors was subscribed 66 per cent as of the same time.

HMA Agro Industries is issuing fresh equity shares worth Rs 150 crore and its promoters and existing shareholders are offloading shares worth Rs 330 crore via offer-for-sale (OFS). The company has fixed the price band at Rs 555-585 apiece with a lot size of 25 shares. The issue closes for subscription on Friday, June 23.

The company 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.

HMA Agro has four fully integrated packaged meat processing plants located at Aligarh, Mohali, Agra, and Parbhani and is in the process of setting up a fifth fully integrated owned meat product processing unit in Haryana.  Agra-based HMA Agro Industries also owns two additional secondary level meat processing units at Jaipur and Manesar.

Analysts remain divided on the stock. A few suggest investing in the issue citing its strong growth, rising demand of meat in the world and consistent performance. However, a few suggest to avoid the issue citing mounting debt and corporate governance concerns in the company.

The company has reserved 50 per cent of the shares for qualified institutional buyers (QIBs), while a 15 per cent quota is reserved for non-institutional investors (NIIs). Retail investors will get the remaining 35 per cent of the allocation.

Aryaman Financial Services is the sole book running lead manager to the issue, while Bigshare Services has been appointed as the registrar. The stock will be listed at both BSE and NSE and it is likely to make its debut on July 4, 2023.

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