HMA Agro IPO Listing On Tuesday, 4 July: What To Expect Amid Positive GMP?

The main-board IPO for HMA Agro Industries began accepting subscriptions on June 20, 2023, and it ended on June 23, 2023. In order to raise up to Rs 480.00 Cr through the IPO, HMA Agro Industries Limited has launched an IPO that consists of both a Fresh issue size worth up to Rs 150.00 Cr and an OFS (Offer For Sale) issue size worth up to Rs 330 Cr.

The issue price range has been set as Rs. 555 to Rs. 585 per share, and the lot size is specified as 25 shares or multiples. The listing date for the company is fixed as Tuesday, 4 July 2023 and the company is going to be listed on BSE, NSE platforms. Bigshare Services Pvt Ltd is the registrar and Aryaman Financial Services Limited is the lead manager of HMA Agro Industries IPO.

By June 23, 2023, the HMA Agro IPO had received 1.62 times its total subscription receiving bids for 97.93 lakh equity shares against 60.53 lakh shares on offer, 0.96 times from retail investors, 1.74 times from QIBs (qualified institutional buyers), and 2.97 times from NIIs (non-institutional bidders). The basis of share allotment was done on Thursday, 29 June 2023, hence those who have applied for the HMA Agro Industries IPO can check their allotment status by logging in to the BSE portal or the official registrar of the public issue.

As per the market watchers the grey market premium (GMP) of HMA Agro Industries today is Rs 40 as of July 3rd 2023 09:00 AM. The expected listing price for the HMA Agro Industries IPO is Rs 625 (cap price + today's GMP), taking into account the upper price range of Rs 585. Therefore, market analysts anticipate that HMA Agro Industries will list tomorrow, July 4, at an upside premium of 6.84% over the issue price.

Commenting on the expectation of HMA Agro Industries during its listing day, Ravi Singh, Vice President and Head of Research, Share India said "HMA Agro Industries Ltd saw a decent subscription of 1.62 times. However, the recent fall in the gmp of the ipo suggests a subdued listing on the exchange. We advise investors to hold their subscription from a medium term perspective."

Nirav Karkera, Head of Research, Fisdom said "We maintain a view that though the business operates in a robust segment with growth prospects in favour, the financial health of the company may cause some concern among investors. Most such developments can be expected to be efficiently priced in through the days following the listing. Meanwhile, one can expect a softer listing almost at par. Observing post-listing developments may help investors form a decision with better context."

QY2 is there are few IPO about open and few are already active such as HMA Agro, which is India's largest exporters of frozen buffalo meat products, is expected to list on the BSE and the NSE on 4 July 2023. Should we apply or not? To get an answer to this, firstly, let's understand about the company, financials and SWOTs. This is a business which is related to Agro to FMCG, in Demanding and stable in nature. In this sector there are many macro factors that could play significant roles such as export ban and global trade guidelines etc and these are key points here because HMA Agro gains maximum profit share from its exports. From 2019 to 2021, HMA balance sheet has grown by 140.8 to 185.10 to 258.10 for respective consecutive FYs.

However, for the same duration 2020-021 revenue had some dip (that was CORONA time). Its main peers are Avanti Feeds Ltd, Foods & Inns Ltd, Manorama Industries Ltd and Apex Frozen Foods Ltd. HMA is trying to raise Rs 480-crore via this IPO and so far, this offer has received bids for 97,93,625 shares against 60,54,054 shares on offer (Over subscription), as per NSE data. The category for (NII) non-institutional investors received 2.97 times subscription, while the portion for Qualified Institutional Buyers (QIBs) was subscribed 1.74 times and Retail Individual Investors' (RIIs) 96 per cent and yet to fully applied. QIB, NII and over all its business domain and financials are giving a kick to go for a "Subscribe". One more thing you need to do here is, just ensure to deploy only calculated funds in it says V.L.A. Ambala (SEBI Registered Research Analyst at Stock Market Today)

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.