HMA Agro makes decent debut; stock lists at 7% premium over issue price

Post listing, the stock hit a high of Rs 667, up 14 per cent when compard with its issue price of Rs 585 per share on the NSE.

HMA Agro Industries made a decent stock market debut, with its shares listed at Rs 625, a 7 per cent premium over its issue price of Rs 585 per share, on the National Stock Exchange (NSE) on Tuesday. Post listing, the stock hit a high of Rs 667 and a low of Rs 610 in intra-day trade so far. On the BSE, the stock hit an intra-day high of Rs 670, after opening at Rs 615.

At 10:23 AM; HMA Agro was trading at Rs 621 and a combined 2.8 million shares had changed hands on the NSE and BSE.

The Rs 480 crore- initial public offer (IPO) of frozen meat exporter had received 1.62 times subscription. The category for non institutional investors was subscribed 2.97 times, Qualified Institutional Buyers (QIBs) portion received 1.74 times subscription and Retail Individual Investors (RIIs) 96 per cent.

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

HMA Agro is one of the three top exporters of frozen buffalo meat and this segment is under regulatory norms with regulators like APEDA, FSSAI, SGS, QMS, EMS FSMS etc. Its total revenue has over 91 per cent of exports of buffalo meat and the rest on exports of agro products. HMA Agro currently among the largest exporters of frozen buffalo meat products from India and account for more than 10 per cent of India’s total export of frozen buffalo meat.

The company’s products are mainly packaged under the brand name “Black Gold”, “Kamil” & “HMA” in form of food grade packaging and exported to over 40 countries all over the globe.

In order to take advantage of the company’s robust export business and well-established distribution channels across 40 countries, HMA Group have recently diversified its product portfolio by adding Frozen Fish Products and Basmati Rice as business verticals. The Group intends to also add poultry and other agro products to its portfolio thereby becoming one of the most well recognized food products exporters in India.