HMA Agro offer subscribed 32% on Day 1

IPO of ₹480 crore HMA Agro opened to the public on Tuesday 32 percent subscribed. The IPO, which came at EGP 555-585 per share, will close on June 23. The lot size for HMA Agro Industries IPO is 25 shares.

Subscription details

On the first day of the IPO, the issue saw a response from all classes of investors. While the retail investors’ portions were subscribed at 20 percent, the non-institutional bidders’ portion was subscribed at 55 percent and the eligible institutional buyers’ portion was 37 percent. Overall, the IPO received bids for 19,66,875 shares for the 60,54,054 shares offered.

The company has reserved 50 percent of the net bid portion for qualified institutional buyers, 15 percent for non-institutional investors, and 35 percent for retail investors.

Problem details

HMA Agro, which deals in buffalo meat and allied products contributing 97 per cent of its total revenue from operations, consists of a new issue worth Rs 150 crore and offered for sale worth Rs 330 crore by the promoters – Wajid Ahmed, Gulzar Ahmed Mohamed Mehmood Qureshi, Mohamed Ashraf Qureshi and Zulfiqar Ahmed Qureshi and Parvez Alam.

The proceeds of the new issue will be used mainly for working capital requirements.

The main investors

As part of the IPO, HMA Agro Industries on Monday raised Rs 144 crore from various anchor investors. The company said it has finalized an allotment of 24.61 thousand shares to anchor the investors, at a price of INR 585 per share, which is the upper price range.

Major investors include the Craft Emerging Market PCC Fund, Minerva Ventures Fund, Forbes EMF, Coeus Capital Opportunities Fund, Radiant Global Fund, and Absolute Returns Scheme.

Craft Emerging Market Fund PCC is the largest investor among them, having invested Rs 70 crore in HMA Agro via Citadel Capital Fund and Elite Capital Fund.

About HMA Agro

HMA Agro Industries is one of the largest exporters of buffalo meat in India, accounting for more than 10 percent of India’s exports of frozen buffalo meat. Its products are self-branded, packaged under the brand name “Black Gold”, “Kamel” and “HMA” and exported to more than 40 countries.

Aryaman Financial Services is the sole principal responsible for managing the underwriting in this issue, while Bigshare Services has been appointed as the registrar for this issue.