Ahead of the listing, the company’s shares in grey market premium (GMP) were commanding a premium of Rs 40.
The initial share sale, which comprised a fresh equity issue of up to Rs 150 crore and an OFS of Rs 330 crore, was fully subscribed on the last day despite muted interest from retail investors.
Most of the heavy lifting was done by NIIs and QIB, whose subscription rates stood at 2.97 and 1.74 times. Meanwhile, retail investors’ subscriptions stood at just 96% at the close.
The response was tepid on the first day, but the demand picked up later, taking the issue over the line.
“HMA Agro Industries saw a decent subscription of 1.62 times. However, the GMP suggests a subdued listing on the exchange. We advise investors to hold their subscription from a medium-term perspective,” said Ravi Singh, Vice President and Head of Research, Share India.
Net proceeds from the fresh issue will be used for funding the working capital requirements of the company and other general corporate purposes.The company is one of the top three market leaders in the export of packaged frozen buffalo meat products from India. It has recently begun a product diversification process into other food processing and exports of products such as frozen fish and basmati rice.
HMA Agro has long-standing relations with customers which are spread in various geographies across the globe. However, it is to be noted that the company is heavily dependent on the export business for its business operations which contributed to around 90.2% of its revenue in FY22.
Aryaman Financial Services was the sole book-running lead manager, and Bigshare Service acted as registrar to the issue.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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