The initial public offering of HMA Agro Industries has garnered bids for 61.46 lakh equity shares against IPO size of 60.54 lakh shares, subscribing 1.02 times on June 23, the final day of bidding.
Qualified institutional buyers and high networth individuals helped the issue sail through, while retail investors seem less enthusiastic about the issue, buying 59 percent shares of the allotted quota.
The portion set aside for QIBs was subscribed 1.04 times, and that of high networth individuals 1.98 times.
The Rs 480-crore public issue by the frozen buffalo meat exporter was opened for subscription on June 20, with a price band of Rs 555-585 per share.
The IPO comprises a fresh issuance of shares worth Rs 150 crore, and an offer for sale of Rs 330 crore by promoters. Of which, the company already mobilised Rs 144 crore via anchor book on June 19, a day before the issue opening for public.
HMA Agro is currently among the largest exporters of frozen buffalo meat products from India and it accounts for more than 10 percent of India's total export of frozen buffalo meat, with four fully integrated packaged meat processing plants.
It is in the process of setting up a fifth fully integrated-owned meat product processing unit in Haryana, and is also in advanced stage to acquire an additional plant at Unnao and expects to complete this acquisition by Q2FY24. It exports over 40 countries across the globe.
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The fresh issue proceeds will mainly be utilised for working capital requirements, while the company has total debts of Rs 340 crore at the end of December FY23, against Rs 330 crore in FY22.
The IPO share allotment will get finalised by the company on June 29. The refunds will be credited to bank accounts of unsuccessful participants by June 30, and equity shares will be transferred to demat accounts of eligible investors by July 3.
HMA Agro will make its debut on the BSE and NSE on July 4, 2023. This would be eighth listing on the bourses in current calendar year.