IPO Corner: HMA Agro Industries Ltd.

HMA Agro Industries Ltd.’s IPO will open on 20 June for subscription and close on 23 June. The anchor bids will start on 19 June. Initiation of refunds will be on 30 June and credit of equity shares to demat account of the allottees will be on 3 July. The company has set the price band for its Rs 480-crore public issue at Rs 555-585 a share. The stock is scheduled to list on the exchanges on July 4. On the upper price band, the firm is value at Rs 2,780 crore.

• Issue Opens on: Tuesday, June 20, 2023
• Issue Closes on: Friday, June 23, 2023
• Price Band: ₹555 to ₹585 per Equity Share

HMA Agro plans to raise Rs 150 crore through the fresh issue and Rs 330 crore from an offer-for-sale from its shareholders and promoters. The OFS comprises up to Rs 120 crore by Wajid Ahmed, up to Rs 49 crore each by Gulzar Ahmad, Mohammad Mchmood Qureshi, Mohammad Ashraf Qureshi and Zulfiqar Ahmad Qurashi. Parvez Alam will sell up to Rs 14 crore through OFS. The proceeds from the fresh issue of up to Rs 135 crore will be used on working capital requirements of the company.

The firm is among 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 mainly packaged under the brand name Black Gold, Kamil and  HMA in the form of food-grade packaging and exported to over 40 countries.

The raw material procurement is done by the company and it is processed at various facilities, most of which are owned by its subsidiaries and some are run by third parties. These processing units work on a contractual basis against fixed charges, which are borne by the company. The firm exports to the UAE, Iraq, Saudi Arabia, Oman, Bahrain, Jordan, Algeria, Egypt, Angola, Vietnam, Indonesia, Georgia, Malaysia, Cambodia and various Middle Eastern, CIS and African countries. Approximately 90 percent of its sales are in the form of exports. It recently diversified its product portfolio by adding Frozen Fish Products, Basmati Rice, Poultry and other agri products as business verticals.

For the fiscal year 2021, its revenue stood at Rs 3,083.19 crore as against Rs 1707.50 crore a year ago. Net profit for the period stood at Rs 117.62 crore versus Rs 71.60 crore last year.