The Rs 480-crore initial public offering (IPO) of HMA Agro Industries Ltd will open on June 20 and close on June 23 for public subscription. The company has fixed the price band at Rs 555-585 per equity share for the issue. The IPO is expected to list on both BSE and NSE on July 4.
Nearly 50 percent of the public offer is reserved for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 35 percent for retail investors.
The IPO includes a fresh issue of Rs 150 crore and an offer for the sale (OFS) of up to Rs 330 crore by promoters and selling shareholders.
The proceeds from the fresh issue will be used on working capital requirements of the firm.
The OFS includes 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 the share sale.
The floor price is 55.5 times the face value and the cap price is 58.5 times the face value. Investors can bid for a minimum of 25 equity shares and in multiples thereafter.
At the upper end of the price band, the company is valued at Rs 2780 crore.
The anchor bids for the public offer will begin on June 19. The company will fix the basis of allotment on June 29 and initiation of refunds will be on June 30. The credit of equity shares to demat account of the allottees will be on July 3.
Aryaman Financial Services Ltd is the sole lead manager to the issue, while Bigshare Services is the registrar.
In March 2022, HMA Agro had sought approval from the Securities Exchange Board of India (SEBI) to raise funds via a public offer.
Currently, the company 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” & “HMA” in the form of food grade packaging and exported to over 40 countries all over the globe.
The firm currently export to UAE, Iraq, Saudi Arabia, Oman, Bahrain, Jordan, Algeria, Egypt, Angola, Vietnam, Indonesia, Georgia, Malaysia, Combodia and other Middle East, CIS, African Countries etc. Approximately 90 percent of its sales are in the form of exports.
For financial year 2021, the company's total income came in at Rs 1720.40 crore as compared to Rs 2416.61 crore in the year-ago period of same year. Net profit for the period came in at Rs 72.61 crore as against Rs 45.90 crore last year. For the September quarter, the firm's revenue was at Rs 1479.77 crore while net profit stood at Rs 63.21 crore. As of September its total outstanding debt stood at Rs 285.88 crore.
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