Shares of HMA Agro Industries made a lukewarm debut on the bourses today. On NSE, the stock listed at ₹625, a premium of 6.85 percent or ₹40 versus its issue price of ₹585. On BSE, the stock listed at ₹615, a premium of 5.13 percent or ₹30 vs IPO price of ₹585.
The issue received a decent response from investors and was fully subscribed on the final day of bidding, June 23, 2023. The IPO was subscribed 1.62 times and received bids for 97.93 lakh equity shares against 60.53 lakh shares on offer. The non-institutional investors' (NII) portion was subscribed 2.97 times while the qualified institutional buyer quota was subscribed 1.74 times. The part reserved for retail investors witnessed underwhelming participation and was subscribed to only 96 percent, less than what was offered.
The ₹480-crore IPO opened for subscription on June 20, 2023, and closed on June 23, 2023. This was the second IPO to be launched in the month of June, however, the issue is not tracked by most analysts. The price band for the offer was fixed at ₹555-585 per share.
HMA Agro Industries is currently one of the largest exporters of frozen buffalo meat products from India and accounts for more than 10 percent of India’s total export of frozen buffalo meat. Its products are self-branded, packaged under the brand name 'Black Gold', 'Kamil' and 'HMA' and are exported to over 40 countries. The company has also started focussing on exporting Frozen Fish Products and Basmati Rice, taking advantage of its robust export business and well-established distribution channels. It has four fully integrated packaged meat processing plants and is in the process of setting up a fifth one.
The company aimed to raise ₹480 crore via the IPO comprising of fresh issuance of shares worth ₹150 crore and an offer for sale (OFS) for ₹330 crore by promoters. The proceeds from the IPO will be used to meet working capital requirements ( ₹135 crore), besides general corporate purposes. However, it will not receive any proceeds from the offer for sale. The entire offer for sale proceeds will go to selling shareholders.
