HMA Agro Industries IPO: Key Details and Insights for Investors

Get the latest on the HMA Agro Industries IPO, including its price band, financials, objectives, and insights into the buffalo meat export industry.

HMA Agro Industries IPO launches June 20
  1. Leading buffalo meat exporter in India, aiming to raise Rs. 480 crore through IPO.
  2. Price band set at Rs. 555-585 per equity share, with IPO opening on June 20.
  3. Company's financial performance shows steady growth and effective expense management.
  4. Consider potential risks and opportunities in the regulated buffalo meat export market before investing.

HMA Agro Industries, India's largest buffalo meat exporter, is preparing to launch its Initial Public Offering (IPO) to raise Rs. 480 crore. The IPO subscription opens 20 June to 23 June, with share allotment expected to be finalised on 29 June, offering investors an opportunity to be part of the growing frozen buffalo meat market.

Also ReadHow to check IPO allotment status?

What you need to know about HMA Agro's IPO

The IPO consists of a fresh issue of equity shares worth Rs. 150 crore, along with an offer for sale (OFS) of Rs. 330 crore by the company's promoters and selling shareholders. The price band for the IPO has been set at Rs. 555-585 per equity share, with a minimum bid of 25 shares and multiples thereafter. Aryaman Financial Services is managing the IPO, while Bigshare Services is the registrar.

The allocation of shares in the IPO is structured with 50% reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and the remaining 35% for retail investors.

The net proceeds from the fresh issue will be utilised to fund the company's working capital requirements and for general corporate purposes. At the upper end of the price band, the company is valued at Rs. 2,929 crore, with a price-to-earnings (P/E) ratio of 23.99 based on diluted earnings per share (EPS) for FY22, compared to the Nifty's P/E of 21.59.

About HMA Agro Industries

It has established itself as a leading player in the frozen buffalo meat sector, with a share of more than 10% of India's total frozen buff meat exports. The company's branded products are exported to over 40 countries,.

In terms of financial performance, as of December 2022, it reported revenue from operations of Rs. 2,370 crore and a profit of Rs. 109 crore.

While itis an industry leader, investors should consider the potential risks associated with the industry. The company has witnessed a decline in revenue from operations over the years, although effective expense management has supported its profitability.

Also read: IPO exit strategies to optimise your gains

Potential risks with HMA Agro Industries IPO

Operating in a highly regulated environment, HMA Agro Industries faces challenges in compliance with regulations and is currently involved in multiple litigations. Additionally, the company's core product, buffalo meat, may face uncertainties in demand due to changing consumer preferences towards healthier food choices.

Investors interested in participating in the HMA Agro Industries IPO should carefully evaluate these risks and the company's long-term growth prospects in the evolving market landscape.


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