HMA Agro Industries IPO Review: HMA Agro Industries Limited is coming up with its Initial Public Offering. The IPO will open for subscription on June 20th, 2023, and close on June 23rd, 2023. In this article, we will look at the HMA Agro Industries IPO Review 2023 and analyze its strengths and weaknesses. Keep reading to find out more! 

HMA Agro Industries IPO – About The Company

Incorporated in 2008, HMA Agro Industries is one of the frozen buffalo meat products company from India that account for more than 10% of India’s total export of frozen buffalo meat. The company’s products are exported to over 40 countries around the world under the brand names  “Black Gold”, “Kamil” & “HMA”.

The company now operates four completely integrated packaged meat processing units in Aligarh, Mohali, Agra, and Parbhani, and is in the process of establishing a fifth fully integrated-owned meat product processing unit in Haryana. 

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The company is also in the process of acquiring an additional factory in Unnao by the second quarter of FY23. By FY23, the total in-house meat product processing capacity is estimated to be more than 4,00,000 metric tonnes per year divided over six distinct owned units.

Products by the company:

Following are the different products sold by the company under different Brand Names:

1. Brand Name: “Black Gold”, Product: Frozen Buffalo Meat

2. Brand Name: “KAMIL”, Product: Frozen Buffalo Meat

3. Brand Name: “HMA”, Product Name: Frozen Buffalo Meat

4. Brand Name: “Fresh Gold”, Product Name: Frozen Fish

5. Brand Name: “Green Gold” Product Name: Basmati Rice

HMA Agro Industries - Products

(Source: RHP of the company)

HMA Agro Industries IPO – Financial Highlights

If we look at the financials of HMA Agro Industries IPO we notice that their assets have grown from Rs.472.85 crores in March 2020 to Rs. 971.72 crores in December 2022.

Similarly, its revenue has grown from Rs. 2416.61 crores in March 2020 to Rs.3138.97 crores in March 2022. For FY23, the company has recorded a total revenue of Rs.2417.82 Crores until December 2022. 

Despite the decrease in the company’s revenue in FY21, there has been a YoY increase in companies net profits. Its profits have grown from Rs.45.98 crores in March 2020 to Rs.117.62 crores in March 2022. For FY23, the company has recorded a net profit of Rs.113.23 Crores until December 2022. 

It is important to note that the company’s borrowing has also increased from Rs. 169.17 crores In March 2020 to Rs. 295.17 crores in December 2022. 

The balance sheet of the company 

Balance Sheet of HMA Agro Industries

(Source: RHP of the company)

The Income Statement of the company 

HMA Agro Industries IPO - Income Statement

(Source: RHP of the company)

Summary of Financial Information

Financial Information

(Source: RHP of the company)

Country-wise Revenue of the company 

Revenue information

(Source: RHP of the company)

Key Players in the Market

Below is the image of the key players in the industry along with their total annual production:

HMA Agro Industries IPO - Annual Production

Strengths of the Company

  • The company operates by mainly exporting its products to various countries. For this purpose, it has developed strong relations with various distributors that have also enabled them to achieve new markets.
  • The company has focused on delivering high-quality products ever since its inception. This has enabled them to build well-established brands that carry brand recall values at the end customer level.
  • The company exports its products to more than 40 countries which reduces the risk of the business and its dependence on single geography making this its core strength.
  • The company has promoters who have significant industry experience and also a team of experienced personnel. The firm believes that it will enable them to take advantage of both current and future market opportunities.

Weaknesses of the Company

  • The company generates a significant portion of its revenue from the meat business and any reduction in demand or in the production of such products could have an adverse effect on the business
  • The company operates in a highly regulated, environmental and religiously sensitive business. Due to this, the company faces the risk of its plants shutting down or disruptions with respect to its processing plants which they have experienced in the past.
  • The company does not have any long-term agreements with its suppliers for its raw materials which may lead to an increase in the cost of, or a shortfall in the availability of livestock raw materials. 
  • Outbreaks of livestock diseases in general can significantly restrict the company’s ability to conduct its operations.
  • The company relies on third-party transportation providers for both the procurement of raw materials and the distribution of the products. Any issues relating to the delivery of raw materials or the final products will disrupt the company’s flow of operations.

HMA Agro Industries IPO Review – Key IPO Information

ParticularsDetails
IPO Size₹480.00 Cr
Fresh Issue₹150.00 Cr
Offer for Sale (OFS)₹330.00 Cr
Opening dateJune 20th, 2023
Closing dateJune 23rd, 2023
Face Value₹10 per share
Price Band₹555 to ₹585 per share
Lot Size25 Shares
Minimum Lot Size1 (325 Shares)
Maximum Lot Size13 (325 Shares)
Listing DateJuly 4th, 2023

Promoters: Wajid Ahmed, Gulzar Ahmad, Mohammad Mehmood Qureshi, Mohammad Ashraf Qureshi And Zulfiqar Ahmad Qurashi.

Book Running Lead Manager: Aryaman Financial Services Limited

Registrar to the Offer: Bigshare Services Private Limited

The Objective of the Issue

Following are the Objectives of the issue by the company:

  • Funding working capital requirements of the Company
  • General Corporate Purpose

HMA Agro Industries IPO Review – GMP

The shares of HMA Agro Industries traded at a premium of 4.27% in the grey market on June 16th, 2023. The shares traded at Rs 610. This gives it a premium of Rs 25 per share over the cap price of Rs 585.

In Closing

In this article, we looked at the details of HMA Agro Industries IPO Review 2023. Analysts remain divided on the IPO and its potential gains. This is a good opportunity for investors to look into the company and analyze its strengths and weaknesses. That’s it for this post.

Are you applying for the IPO? Let us know in the comments below.

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