Frozen meat exporter HMA Agro Industries has filed preliminary papers with market regulator Sebi for a ₹480 crore initial share sale.
The Initial Public Offering (IPO) will include a new issue of equity shares worth up to ₹150 crore and an Offer For Sale (OFS) of equity shares worth up to ₹330 crore.
The company will use the net proceeds worth ₹135 crore for funding working capital requirements as well as for general corporate purposes.
Wajid Ahmed will dispose of up to ₹120 crore worth of shares, while Gulzar Ahmad, Mohd Mehmood Qureshi, Mohd Ashraf Qureshi, and Zulfiqar Ahmad Quraishi will each offload shares worth ₹49 crore, according to the Draft Red Herring Prospectus (DRHP). Parvez Alam will also sell ₹14 crore worth of shares.
What is HMA Group?
The Agra-based company is one of India's major exporters of frozen buffalo meat products. Its products are sold in more than 40 countries throughout the world.
HMA Group has been involved in the meat industry for more than four decades.
Currently, the company exports to the United Arab Emirates, Iraq, Saudi Arabia, Oman, Bahrain, Jordan, Algeria, Egypt, Vietnam, Indonesia, Georgia, Malaysia, Cambodia, and other Middle Eastern, CIS, and African countries. Exports account for over 90% of the company's revenue.
It is currently one of India's third-largest exporters of frozen buffalo meat products, accounting for more than 10% of the country's total frozen buffalo meat exports.
The Indian government recognised the company as a star export house. The company's products are sold in many countries under the brand names "Black Gold," "Kamil," and "HMA." Frozen fresh deglanded Buffalo Meat is one of the company's main products.
The company recently expanded its product portfolio by adding Frozen Fish Products and Basmati Rice as new business verticals. It intends to expand into poultry and other agricultural products.
Financials
For the fiscal year 2021, its total income stood at ₹1720.40 crore against ₹2416.61 crore a year ago. Net profit for the period stood at ₹72.61 crore versus ₹45.90 crore last year. For the September quarter, its revenue was at ₹1479.77 crore while net profit stood at ₹63.21 crore. As of September, its total outstanding debt stood at ₹285.88 crore.
| Particulars | For the period ended Sep 30,2021 ( ₹in Million) | March 31,2021 | March 31, 2020 | March 31, 2019 |
| Share capital | 158.38 | 37.27 | 37.27 | 37.27 |
| Networth | 3,218.65 | 2,597.07 | 1,870.46 | 1,414.52 |
| Total Income( Including other Income) | 14,797.69 | 17,203.96 | 24,166.13 | 27,840.29 |
| Profit after tax attributable to the owners of the company | 629.02 | 726.13 | 458.97 | 311.65 |
| Basic and Diluted EPS | 13.08 | 15.28 | 9.66 | 6.56 |
| Net asset value per share | 67.74 | 54.66 | 39.37 | 29.77 |
| Total Borrowings | 2,858.82 | 1,813.35 | 1,691.30 | 1,319.78 |
| Source: DRHP (SEBI) |
