HMA Agro Industries’ initial public offering (IPO) has failed to enthuse investors even as the bidding entered the third day on June 22. The offer had been subscribed 59 percent by the morning with one more day to go.
Investors put in bids for 34.43 lakh equity shares against the IPO size of 60.54 lakh, data available with the exchanges showed.
Retail investors bought 44 percent shares of their allotted quota, while high networth individuals bid 1.21 times their reserved portion. The part set aside for qualified institutional buyers was subscribed 37 percent.
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The frozen buffalo meat exporter intends to mobilise Rs 480 crore through the IPO, which comprises a fresh issue of Rs 150 crore and an offer for sale of Rs 330 crore by promoters, in a price band of Rs 555-585 a share.
The company mopped up Rs 144 crore through the anchor book on June 19 at a price of Rs 585 a share. None of the mutual fund managers invested in the stock.
The fresh issue proceeds will largely be used for working capital requirements, while the offer for sale money will go to selling shareholders, the company said in offer documents.