HMA Agro Industries IPO subscribed 55% on Day 2. Check GMP & other details

The initial share sale of HMA Agro Industries continues to see muted response from investors even on Day 2, with the offer subscription just at 55%. The issue closes on June 23.

The category reserved for retail investors was subscribed 38%, and non-institutional investors portion was subscribed 1.2 times. The QIB portion, on the other hand, was subscribed 37%.

The grey market premium is in a downtrend for the past few days. It stood at Rs 23, down from Rs 25 a day earlier.


The Rs 480 crore IPO comprises a fresh issue of equity shares up to Rs 150 crore and an OFS of Rs 330 crore by promoters and selling shareholders.

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

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

HMA Agro Industries is a leading export house and is one of the largest exporters of buffalo meat in India accounting for more than 10% of India’s export of frozen buffalo meat. Its products are self-branded, packaged and exported to over 40 countries.

The company proposes to utilise the net proceeds of the fresh issue for funding the working capital requirements of the company and other general corporate purposes.

Currently, there are no listed companies in India that engage in a business similar to that of HAM Agro Industries. The P/E ratio based on diluted EPS for FY22 is at 23.99 at the upper end of the price band. This compares 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.

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