HMA Agro Industries IPO ends with 1.62x subscription

Published on Jun 24, 2023 10:39

The initial public offer (IPO) of HMA Agro Industries received bids for 97,93,625 shares as against 60,54,054 shares on offer. The issue was subscribed 1.62 times.

The Non Institutional Investors (NIIs) category was subscribed 2.97 times. The Qualified Institutional Buyers (QIBs) category was subscribed 1.74 times. The Retail Individual Investors (RIIs) category was subscribed 0.96 times.

The issue opened for bidding on Tuesday (20 June 2023) and it closed on Friday (23 June 2023). The price band of the IPO was fixed at Rs 555-585 per share.

The IPO comprised fresh issue of equity shares worth upto Rs 150 crore and an offer for sale of upto Rs 330 crore by the existing shareholders.

The objectives of the fresh issue include Rs 135 crore for funding working capital requirements and balance amount for general corporate purposes.

The promoters and promoter group hold an aggregate of 47,512,875 equity shares, aggregating to 100% of the pre-offer issued and paid-up equity share capital. The post IPO shareholding for the same is expected to be around 84.64%.

HMA Agro Industries is a food trade organization for handled food and agro products including frozen fresh deglanded buffalo meat, prepared/frozen natural products, vegetables, and cereals in India.

The company is one of the largest exporters of frozen buffalo meat products from India and accounts for more than 10% of India`s total export of frozen buffalo meat. The company`s products are packaged under the brand name "Black Gold", "Kamil" & "HMA" and are exported to over 40 countries all over the globe.

The company reported a net profit of Rs 113.24 crore and net sales of Rs 2,370.48 crore for the nine months ended 31 December 2022.