HMA Agro Industries, processed buffalo meat exporters, plans to tap the capital market to raise ₹480 crore through initial public offer of 82.05 lakh shares.
The company has fixed a price band of ₹555-₹585 a share for the issue that opens for subscription on June 30.
The issue consists of fresh equity issuance of ₹150 crore and an offer for sale of up to ₹330 crore. Post-issue, the promoters’ holding will be 84 per cent stake in the company.
The company owns five fully integrated packaged meat processing plants at Aligarh, Mohali, Agra, Parbhani and Haryana. Further, they also own two additional processing units at Jaipur and Manesar. It exports products to over 40 countries.
These would make a total in-house meat product processing capacities of over 4 lakh tonnes per annum.
In the last two years, the company diversified their product portfolio by adding frozen fish products, basmati rice and planning to start Poultry and other agriculture products as business verticals.
Gulzar Ahmed, Chairman, HMA Agro Industries, said, “India is the second largest exporter globally and ships out $2.6 billion of process and packaged buffalo meat per year.”
“Indian buffalo meat gets a premium as they are not genetically modified and reared in open field unlike in other develop countries,” he added.
The funds raised will be used for working capital. It has a debt of ₹360 crore of which ₹52 crore has been raised for setting up the new plant at Haryana.
The company recorded revenue of ₹2,379 crore in the first nine months of last fiscal ended March and net profit was at ₹113 crore. In the fiscal ended March 2022, its revenue increased 81 per cent ₹3,083 crore (₹1,707 crore) and net profit of ₹118 crore (₹72 crore), a rise of 64 per cent.