image showing hma agro ltd ipo
We are in the sixth month of 2023 and there are still fewer IPOs coming into the market as compared to 2022 and 2021. While the broad indices have increased by approximately 20% over the past year, the general mood of investing in stock markets, especially in IPOs, is still cautious. Amid this scenario, there is a new IPO from the agro sector, HMA Agro Industries Limited, which can be evaluated for investing opportunity.
HMA Agro Industries IPO will open for subscription on 20th June 2023 and will close on 23rd June 2023.
Here are all the essential details of HMA Agro Industries IPO, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
The key details of the HMA Agro Industries IPO are as under.
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 20th June 2023 |
| IPO Closing Date | 23rd June 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Re. 10 per share |
| IPO Price Band | Rs. 555 – Rs. 585 per share |
| IPO Size | Rs. 480 crores |
| Offer For Sale | Rs. 330 crores |
| Fresh Issue | Rs. 150 crores |
The important dates for the HMA Agro Industries IPO are highlighted below:
| Event | Date |
| Opening date | 20th June 2023 |
| Closing Date | 23rd June 2023 |
| Allotment date | 29th June 2023 |
| Refund Date | 30th June 2023 |
| Share Credit Date | 3rd July 2023 |
| Listing Date | 4th July 2023 |
Investors can subscribe to the shares of HMA Agro Industries Limited IPO in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots | Minimum – 1 lot Maximum – 13 lots |
| Investment amount | Minimum – Rs. 13,875 – 14,625 Maximum – Rs. 1,90,125 |
| Shares | Minimum – 25 Maximum – 325 |
Here’s the summary of reservation for different applicant categories in this IPO:
| Category of Investor | Reservation Percentage |
| Retail Individual Investors | 35% |
| QIB (Qualified Institutional Buyers) | 50% |
| NII (Non-Institutional Bidders) | 15% |
The IPO will be a combination of a fresh issue and an Offer for Sale. The proceeds from the issue will be utilised in the following manner:
HMA Agro Industries Limited, established in 2008, is a prominent food trade organization in India specializing in processing and exporting various agro products and handling food items. The company is renowned for its expertise in frozen fresh deglanded buffalo meat, prepared/frozen fruits, vegetables, and cereals. It has gained a significant market share in the export of frozen buffalo meat, accounting for over 10% of India’s total export in this category.
HMA Agro Industries Limited package and distribute its products under the brand names “Black Gold,” “Kamil,” and “HMA” to over 40 countries worldwide. They operate four fully integrated meat processing plants in Aligarh, Mohali, Agra, and Parbhani, with plans to establish a fifth plant in Haryana and acquire another in Unnao. These expansions will increase their in-house meat processing capacity to over 400,000 metric tons per year across six owned plants by the second quarter of the fiscal year 2023-24.
The company also owns two secondary-level meat processing units in Jaipur and Manesar, approved for export to countries including the UAE, Iraq, Saudi Arabia, Oman, Bahrain, Jordan, Algeria, Egypt, Angola, Vietnam, Indonesia, Georgia, Malaysia, Cambodia, and others in the Middle East, CIS, and Africa. Export sales account for approximately 90% of their total revenue.
HMA Agro Industries is part of the larger HMA Group, operating in multiple workplaces and environments throughout India, employing a workforce of approximately 25,000 individuals.
HMA Agro Industries Ltd financials are given in the table below:
| Year | Total Assets (Rs. in cr) | Operating Revenue (Rs. in cr) | Profit after tax (Rs. in cr) | Basic EPS | Return on Net Worth |
| Mar-2022 | 856 | 3,083 | 118 | Rs.24.39 | 30.93% |
| Mar-2021 | 572 | 1,707 | 71 | Rs.15.07 | 27.68% |
| Mar-2020 | 473 | 2,373 | 46 | Rs.9.66 | 24.54% |
(Source: RHP)
Some of the key strengths of HMA Agro Industries Ltd that investors can take note of are:
| Category | Details |
| Business model | The company has shown strong and consistent financial performance over the past yearsHMA has the benefit of long-standing relations with the large customer base of the company along with a well-established marketing set-up and diverse marketing reach. The company produces quality products and has a well-established set-up in line with the international requirements of the business. |
| Qualitative merits | HMA is a well-established brand and is ranked amongst India’s top three meat exporting companies.HMA has a well-established management team that is capable of meeting the set targets and further increasing its presence in the market. |
Here are some of the risks that investors of HMA Agro Industries Ltd IPO should know:
| Category | Details |
| Business viability and profitability | The company has a high dependency on the meat segment for business viability and any reduction in such demand can have an adverse impact on the business. There is a lack of any long-term agreements with raw material suppliers which may result in an increase in costs and shortage in supply. The possibility of livestock diseases can have a detrimental impact on the business operations of the company. |
| Other concerns | The Promoter/Director, Subsidiaries, and Group Companies are parties to certain legal proceedings and any adverse result of these proceedings will have a negative impact on the business.The pollutants and waste produced by certain processing units can lead to plant shutdowns and disruption in operations. Furthermore, such shutdowns at export hubs and key logistic points can drastically impact the sales and purchases of the company. |
As of June 18th, 2023, the grey market premium for the shares of HMA Agro Industries Ltd IPO is Rs. 28 as per market observers.
The company is a big name in frozen buffalo meat exports and also has diverse business verticals to mitigate the risk. Furthermore, they have reported strong financials over the past three years with consistent growth in their profit margins.
In view of these factors, investment in HMA Agro Industries IPO can be considered an investment opportunity from the medium to long-term investment perspective. However, it is essential for investors to conduct their own due diligence and evaluate the company’s financials, risks, and industry dynamics before making any investment decisions.
Investors can invest in this IPO through the Fisdom app.
The Grey Market Premium (GMP) indicates how an IPO might perform on its listing date. A positive GMP suggests that the IPO is likely to list at a higher price, potentially generating a profit. Conversely, a negative GMP indicates that the IPO may list at a discounted price.
HMA Agro Industries Limited accounts for 10% of the exports of India in the frozen buffalo meat segment.
The projected in-house meat product processing capacity of HMA Agro Industries Limited is estimated to be more than 4,00,000 metric tons p.a. spread over six different plants owned by the company.
Yes, to apply for any IPO, you need to have a Demat account. To open a Demat account today, you can download the Fisdom app on your smartphone.
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