HMA Agro Industries shares debut with 7% premium

HMA Agro Industries Listing

HMA Agro Industries shares opened the first-day first trade with a 7 percent premium to issue price on July 4, partly impacted by the tepid response from investors to its public issue.

The stock made a debut at Rs 625 against the issue price of Rs 585 on the NSE, while the opening price on the BSE was Rs 615.

The frozen buffalo meat exporter has seen bids 1.62 times the issue size. Retail investors had bought 96 percent shares of the allotted quota, while the reserved portion of qualified institutional buyers was subscribed 1.74 times, and that of high networth individuals 2.97 times during June 20-23.

The company, which gets 90-95 percent of business by selling and exporting frozen buffalo meat and allied products, has raised Rs 480 crore via public issue. The price band for the offer was Rs 555-585 per share.

HMA Agro Industries, which accounts for more than 10 percent of India's total export of frozen buffalo meat, sold products under the brand name Black Gold, Kamil & HMA to over 40 countries across the globe.

The company has four packaged meat processing plants and is in the process of setting up a fifth-owned meat product processing unit in Haryana. It is also in the advanced stages to buy an additional plant at Unnao and expects to complete this acquisition by September FY24.

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HMA Agro diversified into exports of frozen fish and basmati rice a few quarters ago, which has so far contributed less than 2 percent to its revenue from operations.