HMA Agro Industries Ltd IPO

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IPO Synopsis

Frozen meat exporter HMA Agro Industries has filed preliminary papers with SEBI to raise funds worth Rs.480 crore via an IPO. The issue will comprise fresh issue of equity shares aggregating up to Rs.150 crore and an Offer For Sale of equity shares worth up to Rs.330 crore by its promoters.
OFS comprises offloading of up to Rs.120 crore worth shares by Wajid Ahmed and shares valued at Rs.49 crore each by Gulzar Ahmad, Mohd Mehmood Qureshi, Mohd Ashraf Qureshi and Zulfiqar Ahmad Quraishi. Besides, shares worth Rs.14 crore will be sold by Parvez Alam.
Aryaman Financial Services Ltd is the sole lead manager to the issue


Objective of the Issue
The company will use the net proceeds worth Rs.135 crore for funding working capital requirements as well as for general corporate purposes.

About HMA Agro Industries Ltd

HMA Agro Industries deals only in buffalo meat and allied products as it 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 is procurement by the company and processed at various processing units. Most of the processing units are owned by the subsidiaries and some by third parties. These processing units process the products on a contractual basis against the fixed charges, incurred by the company.
The firm is currently among the largest exporters of frozen buffalo meat products from India and commands more than 10 percent of India’s total export of frozen buffalo meat. Its 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.
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.
The 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.

Profit and Loss

Balance Sheet

Particulars (in Rs. Crores) FY21 FY20 FY19
Revenue 1707.5 2372.8 2742.1
EBITDA 110.0 89.0 62.7
PAT 72.6 45.9 31.2
Particulars (in Rs. Crores) FY21 FY20 FY19
Total Assets 572.0 472.8 549.3
Share Capital 3.7 3.7 3.7
Total Borrowings 181.3 169.1 132.0
Particulars (in Rs. Crores) FY21 FY20 FY19
Net cash generated from / (used in) operating activities 17.90 24.22 22.52
Net cash from / (used in) investing activities -16.93 -29.54 -7.67
Net cash flow from / (used in) financing activities 12.21 37.15 -12.06
Net increase (decrease) in cash and cash equivalents 13.17 31.83 2.80


Peer Comparison

There are no listed companies in India that engage in a business similar to that of this company


The key points are:-

Key Points

  • Strengths

    1. Production Quality and well-established Set up
    2. Well educated and experienced team
    3. Long standing relations with our customer base and well-established marketing set up
    4. Well established brand 
    5. Global Presence

  • Risks

    1. It derives a significant portion of the revenue from meat business and any reduction in demand or in the production of such products could have an adverse effect
    2. Promoter/Director, our Subsidiaries and our Group Companies are parties to certain legal proceedings
    3. Failure to obtain, retain and renew certain approvals and licenses in the ordinary course of business in timely manner or comply with such rules and regulations or at all may have an adverse effect
    4. It operates in a highly regulated and environmental and religiously sensitive business
    5. Failure to protect or enforce its rights to own or use trademarks and brand names and identities
    6. Inability to maintain quality standards is subject to performance

How to apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

FAQs

What is the price band of the IPO?

HMA Agro Industries IPO details are yet to announced.

When does the HMA Agro Industries issue open and close?

HMA Agro Industries IPO details are yet to announced.

What is the size of HMA Agro Industries IPO issue?

The IPO comprise of fresh issue of equity shares aggregating up to Rs.150 crore and an Offer For Sale of equity shares worth up to Rs.330 crore by its promoters.

Who are the promoters/key personnels of HMA Agro Industries?

HMA Agro Industries is promoted by Wajid Ahmed, Gulzar Ahmad, Mohammad Mehmood Qureshi, Mohammad Ashraf Qureshi and Zulfiqar Ahmad Qurashi.

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