HMA Agro Industries IPO: 10 things to know about the public offer

The Rs 480 crore initial share sale of HMA Agro Industries will open for subscription on June 20 and closes on June 23. Here are 10 things to know about the public offer

1) Company overview
HMA Agro Industries is a leading exporter of buffalo meat in India, accounting for more than 10% of the country's export of frozen buffalo meat. Its products are self-branded, packaged and exported to over 40 countries.


2) IPO size
The IPO comprises a fresh issue of equity shares up to Rs 150 crore and an offer for sale (OFS) of Rs 330 crore by promoters and selling shareholders.

3) Price band
The company has fixed a price band of Rs 555-585 per equity share for the public offer. Investors can bid for a minimum of 25 equity shares and in multiples thereafter.

4) Issue structure
About 50% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors and the remaining 35% for retail investors.

5) Objects of the offer
The company has proposed to utilise the net proceeds of the fresh issue for funding working capital requirements of the company and other general corporate purposes.

6) Valuation
The P/E ratio based on diluted EPS for FY22 is at 23.99, compared with Nifty's P/E of 21.59. Based on the upper end of the price band, the company commands a market valuation of Rs 2,929 crore.

7) Important Dates
The IPO opens on June 20 and closes on June 23. The share allotment is likely to be finalised on June 29 and the listing of shares will be on July 4.

8) GMP
According to market sources, the company's shares are trading flat as compared to the price band in the unlisted market.

9) Financial Performance
For the period ending December 2022, the company has reported revenue from operations of Rs 2,370 crore and a profit of Rs 109 crore.

10) Book running lead manager
Aryaman Financial Services is acting as the book running lead manager to the issue and Bigshare Services is the registrar.