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HMA Agro Industries files draft papers with SEBI to raise Rs 480-crore IPO

March 29, 2022 04:02 PM

HMA Agro Industries files draft papers with SEBI to raise Rs 480-crore IPO
The HMA Agro Industries IPO consists of a fresh issue of Rs 150 crore and an offer for sale of Rs 330 crore by its existing shareholders and promoters.

HMA Agro Industries Ltd has sought approval from the Securities Exchange Board of India (SEBI) to raise Rs 480 crore via initial public offering (IPO).

The HMA Agro Industries IPO consists of a fresh issue of Rs 150 crore and an offer for sale of Rs 330 crore by its existing shareholders and promoters.

The OFS comprises of up to Rs 120 crore by Wajid Ahmed, up to Rs 49 crore each by Gulzar Ahmad, Mohammad Mehmood Qureshi, Mohammad Ashra Qureshi, Zulfiqar Ahmad Qurashi and Rs 14 crore by Parvez Alam.

The proceeds from the issue worth Rs 135 crore will be used for funding working capital requirements. As of 28 February 2022, its working capital facilities limit was at Rs 3650 crore on a standalone basis from banks.

The HMA Agro Industries is currently among the largest exporters of frozen buffalo meat products from India and accounts for more than 10 percent of India’s total export of frozen buffalo meat.

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HMA Agro Industries products are mainly packaged under the brand name “Black Gold”, “Kamil” & “HMA” in the form of food grade packaging and exported to over 40 countries all over the globe.

The firm only deals in buffalo meat and allied products. Unlike beef or pork, buffalo meat is free from religious constraints and has the added advantage of low fat and cholesterol.

The meat processed for export is in the form of deboned and deglanded frozen halal buffalo meat.

The raw material procurement is done by the company and the same is processed at various processing units, most of which are owned by its subsidiaries and some are owned by third parties.

These processing units process its products on a contractual basis against the fixed charges, which are borne by the company.

The HMA Agro Industries firm currently export to UAE, Iraq, Saudi Arabia, Oman, Bahrain, Jordan, Algeria, Egypt, Angola, Vietnam, Indonesia, Georgia, Malaysia, Combodia and other Middle East, CIS, African Countries etc. Approximately 90 percent of its sales are in the form of exports.

Aryaman Financial Services Ltd is the sole lead manager to the issue in order to take advantage of its robust export business and well-established distribution channels across 40 countries, it recently diversified its product portfolio by adding Frozen Fish Products, Basmati Rice, Poultry and other agri products as business verticals.

Also Read : Hariom Pipe Industries prices IPO at Rs 144-153 a share

For fiscal year 2021, its total income stood at Rs 1720.40 crore against Rs 2416.61 crore a year ago. Net profit for the period stood at Rs 72.61 crore versus Rs 45.90 crore last year.

For the September quarter HMA Agro Industries revenue was at Rs 1479.77 crore while net profit stood at Rs 63.21 crore. As of September, its total outstanding debt stood at Rs 285.88 crore.

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