The ₹480-crore initial public offering of HMA Agro will close for public subscription on Friday. The IPO has a price band of ₹555-585 per share. The lot size for HMA Agro Industries IPO is 25 shares.
Subscription details
On the penultimate day of issue closing, the issue saw a response from all categories of investors, especially from HNIs. While retail investor’s portions were subscribed to 54 per cent, non-institutional bidders subscribed to 1.92 per cent and the Qualified institutional buyers’ quota by 1.04 per cent. Overall, the IPO received bids for 59.46 lakh shares against 60.54 lakh on offer.
The company has reserved 50 per cent of the net offer to Qualified Institutional Buyers, 15 per cent for Non-Institutional Investors and 35 per cent to retail investors.
Issue details
HMA Agro, which deals in buffalo meat and allied products with a 97 per cent contribution to its total revenue from operations, consists of a fresh issue of Rs 150 crore and an offer for sale of ₹330 crore by promoters - Wajid Ahmed, Gulzar Ahmad, Mohammad Mehmood Qureshi, Mohammad Ashraf Qureshi, Zulfiqar Ahmad Qurashi and Parvez Alam.
Utility of funds
The fresh issue proceeds will be utilised mainly for working capital requirements.
Anchor investors
As part of IPO, HMA Agro Industries on Monday raised ₹144 crore from several anchor investors. The company said it has finalised the allocation of 24.61 lakh shares to anchor investors, at Rs 585 per share, the upper price band. Among the anchor investors included Craft Emerging Market Fund PCC, Minerva Ventures Fund, Forbes EMF, Coeus Capital Opportunities Fund, Radiant Global Fund and Absolute Returns Scheme.
Craft Emerging Market Fund PCC is the biggest investor, investing ₹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 per cent of India’s export of frozen buffalo meat. Its products are self-branded, packaged under the brands ‘Black Gold’, ‘Kamil’ and ‘HMA’ and exported to over 40 countries.
Aryaman Financial Services is the sole book-running lead manager to the issue, while Bigshare Services has been appointed as the registrar to the issue.