HMA Agro to raise ₹480 crore via IPO
HMA Agro Industries, Processed buffalo meat exporters plan to tap the capital market to raise ₹480 crore through the initial public offering from 82.05 lakh shares.
The company has set a price range of between £555 and £585 per share for the issue, which opens for subscription on June 30.
The issue consists of a new share capital issue of Rs.150 crore and an offer for sale of Rs.330 crore. After the release, the promoters’ stake will be 84 percent in the company.
The company has five integrated packaged meat processing plants at Aligarh, Mohali, Agra, Parbhani and Haryana. Moreover, they also own two more processing units in Jaipur and Manesar. Products are exported to more than 40 countries.
This would bring the total in-house meat product processing capacity to more than 4 tons per annum.
In the past two years, the company has diversified its product portfolio by adding frozen fish products, basmati rice and planning to start poultry and other agricultural products as business segments.
“India is the second largest exporter globally and ships $2.6 billion in processed and packaged buffalo meat annually,” said Gulzar Ahmed, Chairman of HMA Agro Industries.
“Indian buffalo meat gets a premium because it is not genetically modified and is not raised in open fields unlike other developing countries,” he added.
The money raised will be used for working capital. It has a debt of ₹360 crores collected from ₹52 crores to set up the new plant in Haryana.
The company recorded a revenue of ₹2,379 crore in the first nine months of the latest financial year ending in March and had a net profit of ₹113 crore. In the financial year ending March 2022, its revenue increased by 81 per cent to ₹3,083 crore (₹1,707 crore) and net profit of ₹118 crore (₹72 crore), up by 64 per cent.