ETMarkets.comThe initial public offering (IPO) of HMA Agro Industries was subscribed 7% so far on Day 1 on Tuesday as there was a muted response from all categories of investors.
The NII portion was subscribed 2% so far, while the retail investors' category garnered 13% bids. There were no bids in the qualified institutional buyers (QIB) category yet.
According to market sources, the company's shares are fetching a premium of Rs 25, down marginally from a day ago.
HMA Agro Industries 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.
The company has long-standing relations with customers which are spread in various geographies across the globe. However, it is to be noted that it is heavily dependent on the export business for its business operations which contributed to around 90.2% of its revenue in FY22.
The company's revenue/EBITDA/PAT grew at a CAGR of 14%/85.7%/60.1% during FY22.
Analysts have mixed views on the IPO. Some "avoid" ratings by analysts might dent the subscription demand going forward.
"At the upper end of the price band, the issue is valued at a P/E of 24.0x based on FY2022 earnings which we feel is richly valued. It is also interesting to note that Rs 330 crore of the issue size is an OFS. In terms of listing gains, we recommend an "Avoid" rating for the issue," Stoxbox said.
Following a moderation in valuation going forward, we will revisit the company to take a long-term perspective on the business, it added.
The IPO comprises a fresh issue of equity shares up to Rs 150 crore and an offer for sale (OFS) of Rs 330 crore by promoters and selling shareholders.
The company has fixed a price band of Rs Rs 555-585 per equity share for the public offer. Investors can bid for a minimum of 25 equity shares and in multiples thereafter.
About 50% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors and the remaining 35% for retail investors.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The NII portion was subscribed 2% so far, while the retail investors' category garnered 13% bids. There were no bids in the qualified institutional buyers (QIB) category yet.
According to market sources, the company's shares are fetching a premium of Rs 25, down marginally from a day ago.
HMA Agro Industries 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.
The company has long-standing relations with customers which are spread in various geographies across the globe. However, it is to be noted that it is heavily dependent on the export business for its business operations which contributed to around 90.2% of its revenue in FY22.
The company's revenue/EBITDA/PAT grew at a CAGR of 14%/85.7%/60.1% during FY22.
Analysts have mixed views on the IPO. Some "avoid" ratings by analysts might dent the subscription demand going forward.
"At the upper end of the price band, the issue is valued at a P/E of 24.0x based on FY2022 earnings which we feel is richly valued. It is also interesting to note that Rs 330 crore of the issue size is an OFS. In terms of listing gains, we recommend an "Avoid" rating for the issue," Stoxbox said.
Following a moderation in valuation going forward, we will revisit the company to take a long-term perspective on the business, it added.
The IPO comprises a fresh issue of equity shares up to Rs 150 crore and an offer for sale (OFS) of Rs 330 crore by promoters and selling shareholders.
The company has fixed a price band of Rs Rs 555-585 per equity share for the public offer. Investors can bid for a minimum of 25 equity shares and in multiples thereafter.
About 50% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors and the remaining 35% for retail investors.
(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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