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HMA Agro Industries Limited IPO – Price, Lot size, Open date, GMP & Review

Written by - Marisha Bhatt

June 19, 2023 7 minutes

We are in the sixth month of 2023 and there are still fewer IPOs coming into the market as compared to 2022 and 2021. While the broad indices have increased by approximately 20% over the past year, the general mood of investing in stock markets, especially in IPOs, is still cautious. Amid this scenario, there is a new IPO from the agro sector, HMA Agro Industries Limited, which can be evaluated for investing opportunity.  

HMA Agro Industries IPO will open for subscription on 20th June 2023 and will close on 23rd June 2023.

Here are all the essential details of HMA Agro Industries IPO, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.

Read More: 10 biggest IPOs in India 

IPO Details 

The key details of the HMA Agro Industries IPO are as under. 

  1. IPO Size 

The size of the IPO and different categories of the issue are:

IPO Opening Date20th June 2023 
IPO Closing Date23rd June 2023
ListingNSE, BSE
Issue TypeBook Built Issue IPO
Face Value of sharesRe. 10 per share
IPO Price BandRs. 555 – Rs. 585 per share
IPO SizeRs. 480 crores 
Offer For SaleRs. 330 crores 
Fresh IssueRs. 150 crores
  1. IPO Dates 

The important dates for the HMA Agro Industries IPO are highlighted below:

Opening date20th June 2023
Closing Date23rd June 2023
Allotment date29th June 2023
Refund Date30th June  2023
Share Credit Date3rd July 2023
Listing Date4th July 2023
  1. IPO Lot Sizes 

Investors can subscribe to the shares of HMA Agro Industries Limited IPO in pre-defined lots. The details of the lot sizes for this IPO are mentioned below: 

Investments in lots Minimum – 1 lot
Maximum – 13 lots
Investment amount Minimum – Rs. 13,875 – 14,625
Maximum – Rs. 1,90,125
Shares Minimum – 25
Maximum – 325
  1. IPO Reservation

Here’s the summary of reservation for different applicant categories in this IPO:

Category of InvestorReservation Percentage
Retail Individual Investors 35%
QIB (Qualified Institutional Buyers)50%
NII (Non-Institutional Bidders)15%

HMA Agro Industries Limited IPO Objectives

The IPO will be a combination of a fresh issue and an Offer for Sale. The proceeds from the issue will be utilised in the following manner: 

  • The proceeds for the fresh issue will be utilised to meet the working capital requirements of the company. 
  • The balance proceeds will be used for general corporate purposes

Top things to know about HMA Agro Industries IPO

HMA Agro Industries Limited, established in 2008, is a prominent food trade organization in India specializing in processing and exporting various agro products and handling food items. The company is renowned for its expertise in frozen fresh deglanded buffalo meat, prepared/frozen fruits, vegetables, and cereals. It has gained a significant market share in the export of frozen buffalo meat, accounting for over 10% of India’s total export in this category.

HMA Agro Industries Limited package and distribute its products under the brand names “Black Gold,” “Kamil,” and “HMA” to over 40 countries worldwide. They operate four fully integrated meat processing plants in Aligarh, Mohali, Agra, and Parbhani, with plans to establish a fifth plant in Haryana and acquire another in Unnao. These expansions will increase their in-house meat processing capacity to over 400,000 metric tons per year across six owned plants by the second quarter of the fiscal year 2023-24.

The company also owns two secondary-level meat processing units in Jaipur and Manesar, approved for export to countries including the UAE, Iraq, Saudi Arabia, Oman, Bahrain, Jordan, Algeria, Egypt, Angola, Vietnam, Indonesia, Georgia, Malaysia, Cambodia, and others in the Middle East, CIS, and Africa. Export sales account for approximately 90% of their total revenue.

HMA Agro Industries is part of the larger HMA Group, operating in multiple workplaces and environments throughout India, employing a workforce of approximately 25,000 individuals.

Financials of the company

HMA Agro Industries Ltd financials are given in the table below:

Year Total Assets (Rs. in cr)Operating Revenue (Rs. in cr)Profit after tax (Rs. in cr)Basic EPS Return on Net Worth
Mar-20215721,70771Rs.15.07 27.68%
Mar-20204732,37346Rs.9.66 24.54%

(Source: RHP)

Strengths of the company

Some of the key strengths of HMA Agro Industries Ltd that investors can take note of are:

Business model The company has shown strong and consistent financial performance over the past yearsHMA has the benefit of long-standing relations with the large customer base of the company along with a well-established marketing set-up and diverse marketing reach. The company produces quality products and has a well-established set-up in line with the international requirements of the business. 
Qualitative meritsHMA is a well-established brand and is ranked amongst India’s top three meat exporting companies.HMA has a well-established management team that is capable of meeting the set targets and further increasing its presence in the market.  

Risks of investment

Here are some of the risks that investors of HMA Agro Industries Ltd IPO should know:

Business viability and profitabilityThe company has a high dependency on the meat segment for business viability and any reduction in such demand can have an adverse impact on the business.  There is a lack of any long-term agreements with raw material suppliers which may result in an increase in costs and shortage in supply. The possibility of livestock diseases can have a detrimental impact on the business operations of the company.
Other concernsThe Promoter/Director, Subsidiaries, and Group Companies are parties to certain legal proceedings and any adverse result of these proceedings will have a negative impact on the business.The pollutants and waste produced by certain processing units can lead to plant shutdowns and disruption in operations. Furthermore, such shutdowns at export hubs and key logistic points can drastically impact the sales and purchases of the company.

What is the Grey Market Premium (GMP) of HMA Agro Industries Ltd IPO?

As of June 18th, 2023, the grey market premium for the shares of HMA Agro Industries Ltd IPO is Rs. 28 as per market observers.

Should you apply for HMA Agro Industries Ltd IPO?

The company is a big name in frozen buffalo meat exports and also has diverse business verticals to mitigate the risk. Furthermore, they have reported strong financials over the past three years with consistent growth in their profit margins. 

In view of these factors, investment in HMA Agro Industries IPO can be considered an investment opportunity from the medium to long-term investment perspective. However, it is essential for investors to conduct their own due diligence and evaluate the company’s financials, risks, and industry dynamics before making any investment decisions.

How to apply for HMA Agro Industries Ltd IPO?

Investors can invest in this IPO through the Fisdom app.

HMA Agro Industries Ltd IPO FAQs

1. What is the meaning of a positive grey market premium or a negative grey market premium for an IPO?

The Grey Market Premium (GMP) indicates how an IPO might perform on its listing date. A positive GMP suggests that the IPO is likely to list at a higher price, potentially generating a profit. Conversely, a negative GMP indicates that the IPO may list at a discounted price.

2. What is the share of HMA Agro Industries Limited in the export segment?

HMA Agro Industries Limited accounts for 10% of the exports of India in the frozen buffalo meat segment.

3. What is the projected in-house meat product processing capacity of HMA Agro Industries Limited?

The projected in-house meat product processing capacity of HMA Agro Industries Limited is estimated to be more than 4,00,000 metric tons p.a. spread over six different plants owned by the company.

4. Do I need a Demat account to apply for HMA Agro Industries Limited?

Yes, to apply for any IPO, you need to have a Demat account. To open a Demat account today, you can download the Fisdom app on your smartphone.

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