HMA Agro Industries IPO Review – Key Details
- HMA Agro Industries is offering Equity Shares in fresh and offer for sales aggregating up to ₹480 Crore in its IPO debut.
- The company is offering ₹150 crore as fresh issue and ₹330 crore as offer for sales
- The IPO price is in a range of Rs. 555-585 per share with a face value of ₹10
- The IPO opens on June 20 and closes on June 23.
- The company plans to use the proceeds from the IPO to fund its working capital requirements and for general corporate purposes.
- The IPO is a good opportunity for investors to get involved in the growing Indian food industry.
Unveiling the HMA Agro Industries IPO
HMA Agro Industries IPO Review – One of the largest exporters of buffalo meat in India is coming up with initial public offering on June 20, 2023. The stock will be traded in BSE and NSE.
HMA Agro Industries is coming out with an offer for sale of ₹330 crore and a fresh issue of ₹150 crore with a face value of ₹ 10 each. The company has filed a preliminary paper with SEBI to float the IPO in March 22, 2023. You can find the company DRHP document with market regulator SEBI here.
HMA Agro Industries IPO – Business Description
HMA Agro Industries is one of the largest exporters of buffalo meat in India accounting for more than 10% of India’s export of frozen buffalo meat. HMA Group has been in the meat industry for over 40 years. HMA Agro Industries is the flagship company of the group and is a star export house recognized by Government of India.
HMA Agro Industries ltd in Nutshell
- HMA Agro Industries export of frozen buffalo meat to 40 countries.
- The company products packaged and sold under the brand name “Black Gold”, “Kamil” & “HMA”.
- HMA Agro owns four fully integrated packaged meat processing plants, located at Aligarh, Mohali, Agra and Parbhani.
- The company is expanding its operation both organic and in-organic manner
- HMA Agro Industries is in the process of setting up our fifth fully integrated owned meat product processing unit at Haryana.
- The company is also planning to to acquire an additional plant at Unnao by Q2 of FY 2022-23.
- The total in-house meat product processing capacities would be more than 4,00,000 metric tons p.a. by Q2 of FY 2022-23 once this acquisition completes.
- HMA Agro Industries is also diversified its product portfolio by adding Frozen Fish Products, Basmati Rice, Poultry and other agri products as business verticals.
- The company is gradually shifting towards higher margin markets over the last few years.
HMA Agro Industries Products
HMA Agro Industries Ltd Leadership
Mr. Wajid Ahmed is the Promoter and Managing Director of our Company.
Mr. Gulzar Ahmad is one of the founding Promoters and is the Chairman and Whole Time Director on the Board of our Company.
HMA Agro Industries Ltd Revenue and Profit
The company has been a profit-making company and have an established track record of delivering robust financial performance over the years.
- Considering the financial parameters for the six month ended September 30, 2021, year ended March 31, 2021, March 31, 2020 and March 31, 2019
- The total income was Rs. 14,797.69 million, 17,203.96 million, 24,166.13 million and 27,840.29 million respectively.
- Profit after tax was 629.02 million, 726.13 million, 458.97 million and 311.65 million respectively
- EBIDTA was Rs. 932.45 million, 1,100.16 million, 889.62 million and 627.12 million respectively.
- EBIDTA margin was 6.30%, 6.39%, 3.68% and 2.25% respectively.
- EBIDTA margins have increased from 2.25% in FY 2019 to over 6.39% in FY 2021.
HMA Agro Industries Limited Financial Information
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth | Reserves and Surplus | Total Borrowing |
|---|---|---|---|---|---|---|
| 31-Mar-19 | 549.27 | 2,784.03 | 31.17 | 141.45 | 137.73 | 131.98 |
| 31-Mar-20 | 472.85 | 2416.61 | 45.90 | 187.05 | 183.32 | 169.13 |
| 31-Mar-21 | 572.04 | 1,720.40 | 71.60 | 258.69 | 254.92 | 181.34 |
| 31-Mar-22 | 856.11 | 3138.98 | 117.62 | 374.65 | 327.03 | 330.02 |
Objective Behind the HMA Agro Industries IPO
- From the net proceed from the Offer for Sale (OFS), the company will not receive anything.
- However, the company will utilize the net proceeds from the fresh issue
- The company will utilize ₹135 Crore to fund its working capital requirements of the company
Why invest – HMA Agro Industries IPO Analysis
- HMA Agro Industries has a strong track record of growth. The company has been in operation for over 40 years.
- The company has consistently grown its revenue and profits over the years.
- HMA Agro Indusgtries has a market share of over 10% in the Indian buffalo meat export market.
- The company is well-positioned to benefit from the growth of the Indian food industry which is expected to grow at a CAGR of 10% over the next five years.
- The management team at HMA Agro Industries is experienced and has a proven track record of success.
- The above points interest me to invest in the HMA Agro Industries Limited IPO for the long term.
- A chance to invest in a leading buffalo meat exporter
HMA Agro Industries IPO Date Review Price Details
| HMA Agro Industries IPO Details | HMA Agro Industries IPO Date, Price and others |
|---|---|
| HMA Agro Industries IPO Date | Jun 20, 2023 to Jun 23, 2023 |
| IPO Price band | ₹555 to ₹585 per share |
| IPO Allotment date | Thursday, 29 June 2023 |
| Refunds Initiation date | Friday, 30 June 2023 |
| Credit of Shares to Demat Account | Monday, 3 July 2023 |
| HMA Agro Industries IPO Listing Date | Tuesday, 4 July 2023 |
| Fresh Issue | ₹150 Crore |
| Offer for Sale | ₹330 Crore |
| Minimum bid – Retail Investor (Lot size/ Amount) | 25 shares – 1 lot (Total Investment of ₹14,625) |
| Maximum bid – Retail Investor (Lot size/ Amount) | 325 shares – 13 lots (Total Investment of ₹190,125 |
| Face Value | ₹ 10 per share |
| Listing on | BSE & NSE |
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