HMA Agro Industries
Book Building issueMainboard₹480 Cr issue
+5.13%
Listing gain over issue price
Issue size
₹480 Cr
1 lot at cut-off
₹14,625
Lot size
25shares
Open
20 Jun 2023
Close
23 Jun 2023
Allotment
29 Jun 2023
Listing
04 Jul 2023
Listing performance
Issue price
₹585
Listed at
₹615
Listing-day close
₹585.65
Latest price
—
Listing gain
+5.13%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 20 Jun 2023 – 23 Jun 2023
- Listing date
- 04 Jul 2023
- Face value
- ₹10 per share
- Issue price
- ₹585 per share
- Lot size
- 25 shares
- Issue type
- Book Building issue
- Total issue size
- ₹480 Cr
- Market cap at offer price
- ₹2,930 Cr
- Promoter holding
- 100.00% → 83.61% pre-issue → post-issue
- ISIN
- INE0ECP01016
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Aryaman Financial Services Ltd.
- Registered office
- 18A/5/3, Tajview Crossing Fatehabad Road, Uttar Pradesh
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 24,61,537 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 25 shares per lot, in multiples, at ₹585
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 25 | ₹14,625 |
| Retail (max) | 13 | 325 | ₹1,90,125 |
| S-HNI (min) | 14 | 350 | ₹2,04,750 |
| S-HNI (max) | 68 | 1,700 | ₹9,94,500 |
| B-HNI (min) | 69 | 1,725 | ₹10,09,125 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
24,61,537
Anchor portion
₹144 Cr
at ₹585 per share
Valuation and performance
Valuation at offer price
₹585 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 18.83 | — |
| P/E (×) | 31.07 | — |
| Market cap | — | ₹2,930 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 30.93%
- ROCE
- 42.15%
- Debt / equity
- 0.75
- PAT margin
- 3.82%
- EBITDA margin
- 5.70%
- NAV per share
- ₹78.85
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About HMA Agro Industries
HMA Agro Industries Limited was incorporated on April 09, 2008 as a Three Star Export House. The company is a significant exporter of frozen deboned buffalo meat products, which are self-branded, packaged, and exported to over 40 countries. The company has diversified into marine product exports (frozen fish through an outsourcing arrangement with Gausia Cold Storage Private Limited) and basmati rice trading. For the nine months ended December 31, 2022, the company achieved total income of ₹24,178.21 million, with significant operations through subsidiaries operating APEDA-approved food processing units. The company processes livestock raw materials at its own facilities and those of subsidiaries and third-party processing partners, deriving 73.73% of its revenue from the cost of materials consumed.
Company Analysis
from RHPHMA Agro Industries Limited is one of India's largest exporters of frozen buffalo meat products, accounting for over 10% of India's buffalo meat exports, and operates across meat processing, marine product exports, and basmati rice trading.
HMA Agro Industries Limited was incorporated on April 09, 2008 as a Three Star Export House. The company is a significant exporter of frozen deboned buffalo meat products, which are self-branded, packaged, and exported to over 40 countries. The company has diversified into marine product exports (frozen fish through an outsourcing arrangement with Gausia Cold Storage Private Limited) and basmati rice trading. For the nine months ended December 31, 2022, the company achieved total income of ₹24,178.21 million, with significant operations through subsidiaries operating APEDA-approved food processing units. The company processes livestock raw materials at its own facilities and those of subsidiaries and third-party processing partners, deriving 73.73% of its revenue from the cost of materials consumed.
meat processing and exportfood processingmarine product exportagricultural commodities trading
Objects of the Issue
- Funding working capital requirements of our Company ₹1,350 million p.23
- General Corporate Purposes [●] (not to exceed 25% of Gross Proceeds of Fresh Issue) p.23
- Funding working capital requirements of our Company ₹1,350 million p.89
- General Corporate Purposes [●] million (not to exceed 25% of Gross Proceeds) p.93
- Augment capital base for adequate working capital p.136
- Repayment of borrowings p.331
- General corporate purposes p.331
- Fresh Issue of Equity Shares ₹1,500 million p.338
Issue Structure
- Total Issue
- Up to ₹4,800 million
- Fresh Issue
- Up to ₹1,500 million (Fresh Issue of [●] Equity Shares)
- Offer for Sale
- Up to ₹3,300 million (Offer for Sale of [●] Equity Shares)
- Price Band
- [●] per Equity Share (Floor Price [●], Cap Price [●])
- Lot Size
- [●] Equity Shares as minimum Bid Lot
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue primarily through the export and sale of frozen buffalo meat products. Raw materials (livestock) are purchased from the open market, processed through APEDA-approved facilities owned by the company (via subsidiaries) or contracted to third parties on a fee basis, packaged under the company's brands (Black Gold, Kamil, HMA), and exported to international markets. The company has recently diversified into marine products (frozen fish) through a processing outsourcing arrangement and basmati rice trading through direct export execution.
Business Segments
Processing, packaging and export of frozen deboned buffalo meat products under brands Black Gold, Kamil, and HMA to over 40 countries
Export of frozen fish through an outsourcing agreement with Gausia Cold Storage Private Limited for processing and freezing
Export of basmati rice through direct execution and partnerships with local manufacturers and suppliers
Core business - deboned, deglanded halal buffalo meat exported in various steak forms including knuckle, tenderloin, silverside, striploin, and other cuts
Recently ventured into marine product exports; packaged frozen fish exported under brand name 'Fresh Gold' through outsourcing agreement with Gausia Cold Storage Private Limited
Exports of basmati rice products (1121 Golden, Steam, White Sella varieties and 1509 variants) under brand name 'Green Gold'; procured from domestic suppliers, rebranded and repackaged, exported as a bundle with meat products
Sale of by-products including PFS (Poultry Feed Supplement), frozen offal, tallow, hide, raw meat, bone, raw offal, and other products
Manufacturing, processing, and exporting of buffalo frozen meat and meat products, including bone, tallow, and poultry products
Manufacturing and exporting of frozen fish products
Manufacturing and trading of basmati rice
Manufacturing and exporting of frozen deboned and deglanded halal buffalo meat products under brands 'Black Gold', 'Kamil', and 'HMA', exported to over 40 countries
Sale of meat products in the domestic Indian market
Recently added diversification into frozen fish products and basmati rice business verticals to leverage existing export distribution channels
The company processes and exports frozen buffalo meat products internationally. The company is among the largest exporters of frozen buffalo meat from India, accounting for over 10% of India's total buffalo meat exports.
SWOT Analysis
Strengths
- • Leading exporter of buffalo meat with significant market share(p.22)
- • Established brand presence across 40+ countries(p.22)
- • Three Star Export House status(p.39)
- • Significant improvement in EBITDA margins through strategic focus shift(p.29)
- • Established well-known brands in the market(p.40)
- • Strong credit ratings and access to capital(p.41)
- • Long operational history and expertise(p.35)
- • Established three-star export house status with significant market share in buffalo meat exports(p.89)
- • Strong brand recognition and diversified geographic reach across 40+ countries(p.89)
- • Long-standing customer relationships and well-established distribution network(p.97)
- • Experienced management team and production quality with established infrastructure(p.97)
- • Strong export market presence with 40+ countries and diversified customer base(p.135)
- • Top three buffalo meat exporter in India with significant market share(p.133)
- • Multiple well-established brands with strong recall value(p.135)
- • Integrated fully-owned processing plants with significant capacity(p.133)
- • Strong profitability and consistent financial performance(p.134)
- • Experienced management with deep industry expertise(p.134)
- • International quality certifications and standards compliance(p.150)
- • Established infrastructure with multiple processing facilities across states(p.186)
- • Diversified product portfolio across meat, frozen fish, and basmati rice(p.171)
- • Strong acquisition and consolidation track record(p.170)
- • Experienced and aligned promoter management with decades of industry expertise(p.186)
- • Among largest exporters of frozen buffalo meat in India with >10% market share(p.264)
- • Multiple owned integrated meat processing plants with significant combined capacity(p.264)
- • Established export distribution network across 40+ countries(p.264)
- • Approximately 90% of sales from higher-margin export business(p.264)
- • Recognition as three-star export house by Government of India(p.264)
- • Margin improvement trajectory through strategic focus on higher-margin markets(p.264)
- • Product portfolio diversification into fish and rice exports(p.264)
- • Largest buffalo meat exporter, commanding >10% of India's export share(p.286)
- • Three Star Export House certification from DGFT(p.286)
- • Strong revenue growth post-COVID recovery (80.57% YoY in FY2022)(p.282)
- • Improved profitability with PAT growth of 64.28% in FY2022(p.282)
Weaknesses
- • Significant dependence on meat business revenue(p.29)
- • Lack of long-term supply agreements for raw materials(p.37)
- • High raw material costs as percentage of revenue(p.37)
- • Certain subsidiary companies incurring losses(p.35)
- • Unsecured loans repayable on demand(p.37)
- • Some group companies with negative net worth(p.35)
- • Dependence on processing partners for significant portion of exports(p.39)
- • Past plant shutdowns and operational disruptions(p.31)
- • Limited protection of trademarks in foreign markets(p.40)
- • Past revocation of APEDA registration affecting revenue(p.33)
- • Multiple ongoing litigation proceedings(p.28)
- • High dependence on few customers for significant revenue concentration(p.53)
- • Significant contingent liabilities including export obligation defaults and tax disputes(p.53)
- • High employee attrition rate indicating workforce retention challenges(p.48)
- • Manpower-intensive operations with remote facility locations making skilled recruitment difficult(p.50)
- • Reliance on contract labor creating potential wage payment obligations(p.51)
- • High leverage with significant debt obligations and restrictive covenants(p.47)
- • Limited product diversification with high dependence on buffalo meat(p.140)
- • Revenue concentration in top customers affects stability(p.151)
- • Significant working capital requirements and stretched working capital cycle(p.130)
- • High employee costs relative to industry peers(p.130)
- • One major processing plant (Aligarh) remains inactive due to regulatory issues(p.143)
- • Plant facility disruption - Aligarh plant closure due to regulatory issues(p.170)
- • Negative equity in some subsidiaries indicating financial distress(p.179)
- • Significant capital work in progress not yet generating revenue(p.217)
- • Multiple strikes or labor disputes noted in risk factors(p.170)
- • High raw material cost exposure with 73-82% of costs from material consumption(p.265)
- • No long-term raw material supply contracts creating pricing volatility exposure(p.265)
- • Concentration risk with revenue dependency on meat products business(p.266)
- • Presence of contingent liabilities from tax claims under appeal(p.260)
- • Critical dependence on single high-value customer (corporate guarantee to Yes Bank of ₹5,450 million)(p.285)
- • Significant pending environmental compliance litigation at Aligarh plant (closure order)(p.294)
- • High financial indebtedness with secured borrowings of ₹3,375.49 million (96.1% of total debt)(p.288)
- • Multiple GST-related litigations with aggregated demand exceeding ₹9.93 million across plants(p.295)
- • Pending income tax dispute of ₹5.16 crores for FY 2013-14 at Commissioner (Appeals) stage(p.297)
Opportunities
- • India's strong position as global buffalo meat exporter(p.22)
- • Buffalo meat as major agri-export product(p.22)
- • Expansion to new processing facilities with higher capacity(p.35)
- • Diversification into marine products exports(p.35)
- • New business in Basmati rice exports(p.35)
- • Planned government initiatives to improve FMD status(p.41)
- • Acquisition of Unnao plant to reduce third-party dependency(p.35)
- • Expansion into new geographies and customer base for export business growth(p.91)
- • Increased working capital deployment to fund business growth and operational expansion(p.91)
- • Strategic acquisitions of additional processing units to vertically integrate operations(p.92)
- • Expansion of production capacity with new Haryana plant reaching commercial operations(p.91)
- • Strong global demand growth for buffalo meat particularly from Asia and MENA regions(p.131)
- • India positioned to become second largest buffalo meat exporter globally(p.121)
- • Significant untapped potential in developing economies with low per capita meat consumption(p.126)
- • Product diversification into fish and rice with established export infrastructure(p.136)
- • Expansion of installed capacity with new plants and acquisition opportunities(p.133)
- • Consumer preference shift toward green, grass-fed, and sustainable products(p.125)
- • Export market expansion - operations in 40+ countries with room for growth(p.186)
- • New product lines - frozen fish and basmati rice represent market diversification(p.170)
- • Government export promotion and infrastructure development programs(p.161)
- • FDI permitted up to 100% in manufacturing sector without government approval(p.167)
- • India's growing buffalo meat export market share and production capacity(p.264)
- • Large underutilized buffalo population offering production expansion potential(p.264)
- • Strong international demand for lower-priced quality Indian buffalo meat(p.264)
- • Expansion of processing capacity with additional plants under acquisition(p.264)
- • Diversification into high-growth food export categories(p.264)
- • Growing infrastructure and technology adoption in Indian meat export sector(p.264)
- • Expansion into new geographic markets through new subsidiary plants (Haryana, Jaipur, Maharashtra)(p.283)
- • Diversification into new product categories (poultry feed supplements, tallow oil)(p.296)
- • Strong international approval credentials enabling market expansion (accreditation from UAE, approvals for Indonesia and Malaysia exports)(p.313)
- • Recovery and scaling of previously-restricted Aligarh plant following court-ordered trial operation period(p.317)
Threats
- • Regulatory and environmental compliance challenges(p.30)
- • Potential for future regulatory shutdowns and disruptions(p.31)
- • Foot-and-mouth disease restrictions on exports(p.41)
- • Outbreak of livestock diseases affecting operations(p.41)
- • Market price volatility of buffalo meat(p.38)
- • Reduction in meat demand and market changes(p.29)
- • Counterfeit and pass-off products in market(p.38)
- • Transportation and logistics disruptions(p.39)
- • COVID-19 pandemic ongoing impact(p.42)
- • Changes in government policies and duty exemptions(p.43)
- • Power, fuel and water shortage risks(p.45)
- • Changes in credit ratings affecting funding(p.41)
- • Income-tax searches and potential adverse outcomes(p.39)
- • Volatile and cyclical livestock prices subject to external factors and farmer supply decisions(p.46)
- • Foreign exchange volatility exposure impacting export margins and operating results(p.50)
- • Intense competition from larger multinational and vertically integrated peer companies(p.47)
- • Risk of technology system failures and cybersecurity threats compromising proprietary data(p.47)
- • Natural disasters, pandemics, and geopolitical tensions impacting operations and supply chains(p.54)
- • Regulatory changes and compliance risks from evolving Indian labor and tax laws(p.53)
- • Loss of critical certifications (Halal, FSSAI, GMP, ISO, HACCP) restricting export capabilities(p.50)
- • Indian inflation and inability to pass increased costs to customers affecting margins(p.56)
- • India lacks FMD-free status restricting access to developed markets(p.113)
- • Intense competition from major global exporters particularly Brazil and Australia(p.122)
- • Rising protectionism and trade policy shifts affecting market access(p.125)
- • Global economic slowdown and recession risks impacting demand(p.120)
- • Geopolitical tensions and supply chain disruptions(p.125)
- • Animal disease outbreaks and regulatory restrictions affecting production(p.114)
- • Shifting consumer preferences toward plant-based and alternative proteins(p.125)
- • Regulatory compliance burden and plant licensing requirements(p.161)
- • Dependence on regulatory approvals for electricity and environmental compliance(p.161)
- • Complex multi-state compliance requirements for shops and commercial establishments(p.162)
- • Environmental approval and impact assessment requirements for expansion(p.166)
- • Intense competition from larger multinational and regional competitors(p.267)
- • Macroeconomic volatility and global economic conditions affecting demand(p.265)
- • Significant forex risk exposure with large foreign currency receivables(p.267)
- • Risk of livestock disease outbreaks disrupting operations and exports(p.267)
- • Government regulatory and policy changes affecting industry operations(p.267)
- • Raw material supply disruptions and price volatility risks(p.265)
- • Environmental regulation risk affecting Aligarh plant operations and consent approvals(p.294)
- • Regulatory risk from ongoing Income Tax search (November 2022) with documents seized across multiple locations(p.309)
- • Pending Service Tax disputes aggregating ₹9.86 million across years 2015-2017(p.301)
- • Foreign Exchange Management Act (FEMA) violations probe by Directorate of Enforcement against subsidiary(p.300)
- • Occupational safety risk evidenced by fatal accident at Punjab plant (April 2023)(p.300)
- • Commodity price volatility and input cost risk (raw material consumed 73.73% of revenue in 9M FY2023)(p.280)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Wajid Ahmed | Promoter | 32.00% | — |
| Gulzar Ahmad | Promoter | 16.00% | — |
| Mohammad Mehmood Qureshi | Promoter | 16.00% | — |
| Mohammad Ashraf Qureshi | Promoter | 16.00% | — |
| Zulfiqar Ahmad Qurashi | Promoter | 16.00% | — |
| Parvez Alam | Promoter Group | 4.00% | — |
| Wajid Ahmed | Promoter | 32.00% | — |
| Gulzar Ahmad | Promoter | 16.00% | — |
| Mohammad Mehmood Qureshi | Promoter | 16.00% | — |
| Mohammad Ashraf Qureshi | Promoter | 16.00% | — |
| Zulfiqar Ahmad Qurashi | Promoter | 16.00% | — |
| Parvez Alam | Promoter Group | 4.00% | — |
| Wajid Ahmed | Promoter | — | — |
| Gulzar Ahmad | Promoter | — | — |
| Mohammad Mehmood Qureshi | Promoter | — | — |
| Mohammad Ashraf Qureshi | Promoter | — | — |
| Zulfiqar Ahmad Qurashi | Promoter | — | — |
| Wajid Ahmed | Promoter | 32.00% | — |
| Gulzar Ahmad | Promoter | 16.00% | — |
| Mohammad Mehmood Qureshi | Promoter | 16.00% | — |
| Mohammad Ashraf Qureshi | Promoter | — | — |
| Zulfiqar Ahmad Qurashi | Promoter | — | — |
| Wajid Ahmed | Promoter | 32.00% | — |
| Mohd Ashraf Qureshi | Promoter | 16.00% | — |
| Mohd Mehmood Qureshi | Promoter | 16.00% | — |
| Zulfiquar Ahmed Qureshi | Promoter | 16.00% | — |
| Gulzar Ahmad | Promoter | 16.00% | — |
| Pravez Alam | Promoter | 4.00% | — |
| Wajid Ahmed | Promoter | — | — |
| Gulzar Ahmad | Promoter | — | — |
| Mohammad Mehmood Qureshi | Promoter | — | — |
| Mohammad Ashraf Qureshi | Promoter | — | — |
| Zulfiqar Ahmad Qurashi | Promoter | — | — |
| Parvez Alam | Promoter | — | — |
| Wajid Ahmed | Promoter/Selling Shareholder | — | — |
| Gulzar Ahmad | Promoter/Selling Shareholder | — | — |
| Mohammad Mehmood Qureshi | Promoter/Selling Shareholder | — | — |
| Mohammad Ashraf Qureshi | Promoter/Selling Shareholder | — | — |
| Zulfiqar Ahmad Qurashi | Promoter/Selling Shareholder | — | — |
| Parvez Alam | Promoter/Selling Shareholder | — | — |
Leadership
Gulzar Ahmad · Chairman
Nikhil Sundrani · Company Secretary and Compliance Officer
Gulzeb Ahmed · Chief Financial Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
HMA Agro Industries IPO FAQs
What is the lot size of HMA Agro Industries IPO?
The minimum lot size of HMA Agro Industries IPO is 25 shares. One lot costs ₹14,625 at the cut-off price.
When does HMA Agro Industries IPO open and close?
HMA Agro Industries IPO opened for subscription on 20 Jun 2023 and closed on 23 Jun 2023.
What is the listing date of HMA Agro Industries IPO?
HMA Agro Industries IPO listed on 04 Jul 2023.