HMA Agro shares deliver mild gains on debut; stock lists at 7% premium

Shares of HMA Agro Industries made a positive at Dalal Street on Monday as the stock was listed at Rs 625 on Tuesday at National Stock Exchange (NSE), up 7 per cent against its issue price at Rs 585. It was listed at a premium of 5 per cent at Rs 615 on BSE.

A day ahead of its listing, shares of HMA Agro Industries were commanding a grey market premium of Rs 40-45 per equity share on Monday, hinting towards mild gains at the debut. Its premium in the unofficial market had more than tripled over the weekend before listing.

HMA Agro Industries' 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.

The issue was not widely tracked by the analysts, who remained divided on the stock. A few suggested bidding for the issue citing its strong growth, rising demand of meat in the world and consistent performance; while others suggested avoiding the issue citing mounting debt and corporate governance concerns in the company.

Aryaman Financial Services was the sole book running lead manager to the issue, while Bigshare Services was the registrar.

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