HMA Agro Industries Ltd has announced an IPO (Initial Public Offering) price band for its upcoming IPO aiming to raise Rs 480 crore. The IPO will open for subscription on June 20 and close on June 23. The company plans to offer its shares in the price range of Rs 555-585 per share.
Read further to explore the details of HMA Agro’s IPO, including the timeline, valuation, fundraising plans, and its position in the frozen buffalo meat export industry.
Key Highlights: IPO Details and Timeline
Price Band and Subscription Dates: HMA Agro has set its IPO price band at Rs 555-585 per share. The public issue aims to raise Rs 480 crore. The IPO subscription will commence on June 20 and conclude on June 23.
Capital: HMA Agro aims to raise Rs 150 crore through a fresh issue of shares, which will be used for working capital requirements.
Anchor Bids: Prior to the IPO, the anchor bids will open on June 19, allowing institutional investors to participate in the offering.
Refunds and Allotment: The initiation of refunds is scheduled for June 30. The credit of equity shares to the demat accounts of the allottees will take place on July 3.
Listing: HMA Agro IPO shares are expected to be listed on the exchanges on July 4. At the upper end of the price band, the company will be valued at Rs 2780 crore.
Fundraising Plans and Shareholders’ Offer-for-Sale
Fresh Issue and Offer-for-Sale: HMA Agro plans to raise Rs 150 crore through a fresh issue of shares, which will be utilised for working capital requirements. Additionally, the company’s shareholders and promoters intend to offer Rs 330 crore through an offer-for-sale (OFS). The OFS includes shares worth up to Rs 120 crore by Wajid Ahmed, Rs 49 crore each by Gulzar Ahmad, Mohammad Mchmood Qureshi, Mohammad Ashraf Qureshi, and Zulfiqar Ahmad Qurashi. Parvez Alam will sell shares worth up to Rs 14 crore through the OFS.
Sole Lead Manager: Aryaman Financial Services Ltd has been appointed as the sole lead manager to the IPO.
HMA Agro and its Position in the Frozen Buffalo Meat Export Industry
Leading Exporter: HMA Agro Industries Ltd is currently one of the largest exporters of frozen buffalo meat products from India. It holds a significant share, accounting for over 10 percent of India’s total export of frozen buffalo meat.
Product Portfolio: The company primarily packages its products under the brand names ‘Black Gold’, ‘Kamil’ & ‘HMA’. It exports these products to over 40 countries worldwide. Apart from buffalo meat, HMA Agro recently diversified its product portfolio to include Frozen Fish Products, Basmati Rice, Poultry, and other agricultural products as part of its business verticals.
Distribution Channels: Leveraging its robust export business and well-established distribution channels across 40 countries, HMA Agro has expanded its reach and diversified its offerings to cater to a wider customer base.
Financial Performance and Outlook
For the fiscal year 2021, HMA Agro Industries Ltd reported a revenue of Rs 3,083.19 crore, a significant increase compared to Rs 1707.50 crore in the previous year. The net profit for the period stood at Rs 117.62 crore, demonstrating a notable growth from Rs 71.60 crore in the previous year.
How Can You Invest?
HMA Agro Industries Ltd has set the stage for its Rs 480-crore for its upcoming IPO, aiming to raise funds for working capital requirements and offer an exit opportunity to its existing shareholders. You can participate in the HMA Agro IPO, which opens on June 20, by opening a free demat account with Shoonya, India’s most trusted zero-commission online trading platform that offers multiple features like Advance charting by Trading View and ChartIQ, easy pay-in options, including UPI, NEFT, RTGS, IMPS, and payment gateway, and more!
Disclaimer: Investments in the securities market are subject to market risks, read all the related documents carefully before investing.