10 things to know about HMA Agro IPO before you subscribe

IPO dates

The initial public offering (IPO) of frozen buffalo meat exporter HMA Agro Industries will open for subscriptions on June 20 and close on June 23.

Price band

The price band for the IPO has been fixed at ₹555-585 per share.

How much is it planning to raise?

The Agra-based company intends to raise ₹480 crore – this comprises a fresh issue of shares to the tune of ₹150 crore and an offer for sale worth ₹330 crore by promoters.

What does the company do?

HMA Agro is a government-recognised export house that sells buffalo meat in 40 different countries under brands like Black Gold, Kamil and HMA.

More about the company

The company has four meat-processing plants, and is setting up a fifth plant. It also sells rice and other agro products but that’s a minuscule part of its business.

Financials

Risk factors

The report further states that the nature of the business is highly regulated, environmentally sensitive and has a religious implication as well. Thus, there will be an outside risk of a failure to obtain, retain and renew approvals which in turn will adversely affect operations.

Where will the IPO proceeds go?

The company has said that it will utilise proceeds from the IPO for its working capital requirements and general corporate purposes.

Allotment & listing dates

The IPO’s allotment will be finalised on June 29 and its listing will be on July 4.