MUMBAI, 4 JULY, 2023 (GPN): HMA Agro Industries shares make a strong debut on bourses. The Listing Ceremony was held today at BSE with Actor Shekar Suman as the Chief Guest and amidst investors.
HMA Agro Industries, a major player in the export of packaged frozen buffalo meat, saw its shares listed at a premium on the NSE and BSE, with a strong response from non-institutional investors and qualified institutional buyers during its IPO. Despite subdued interest from retail investors, the IPO was fully subscribed. HMA Agro Industries IPO Listed Today at BSE & NSE: On the NSE, the stock was listed at ₹625 per share, 6.18 percent higher than the issue price, and on the BSE, the stock was listed at 5.13% premium or ₹615 per share.The company fixed the price band at ₹555 to ₹585 per equity share for the proposed initial public offer.

Ahead of the listing, the company’s shares in grey market premium (GMP) were commanding a premium of Rs 40.

The initial share sale, which comprised a fresh equity issue of up to Rs 150 crore and an OFS of Rs 330 crore, was fully subscribed on the last day despite muted interest from retail investors.

Most of the heavy lifting was done by NIIs and QIB, whose subscription rates stood at 2.97 and 1.74 times. Meanwhile, retail investors’ subscriptions stood at just 96% at the close.

The response was tepid on the first day, but the demand picked up later, taking the issue over the line.On Day 4 of the subscription, the issue received overall a positive response from Non Institutional Investors (NIIS) who subscribed to the issue 2.97 times, followed by Qualified institutional buyers’ (QIBs) portion subscribed 1.74 times, retail investors who subscribed to the issue 96% . The issue was subscribed 1.62 times.The public issue that opened for subscription on Tuesday, June 20, will closed on Friday, June 23.

On Monday, June 19, the company raised ₹144 crore by allocating 24,61,537 shares to anchor investors.A number of investors, including Craft Emerging Market Fund PCC, Minerva Ventures Fund, Forbes EMF, Coeus Capital Opportunities Fund, Radiant Global Fund, and Absolute Returns Scheme, took part in the anchor book.

“HMA Agro Industries saw a decent subscription of 1.62 times. However, the GMP suggests a subdued listing on the exchange. We advise investors to hold their subscription from a medium-term perspective,” said Ravi Singh, Vice President and Head of Research, Share India.

The promoters who are taking part in the offer for sale are Parvez Alam, Zulfiqar Ahmad Qurashi, Mohammad Ashraf Qureshi, Wajid Ahmed, and Gulzar Ahmad.

Net proceeds from the fresh issue will be used for funding the working capital requirements of the company and other general corporate purposes.

HMA Agro has long-standing relations with customers which are spread in various geographies across the globe. However, it is to be noted that the company is heavily dependent on the export business for its business operations which contributed to around 90.2% of its revenue in FY22.

The company is one of the top three market leaders in the export of packaged frozen buffalo meat products from India. It has recently begun a product diversification process into other food processing and exports of products such as frozen fish and basmati rice.

Aryaman Financial Services was the sole book-running lead manager, and Bigshare Service acted as registrar to the issue.Ends