The floor price is 55.5 times the face value and the cap price is 58.5 times the face value. Investors can bid for a minimum of 25 equity shares and in multiples thereafter.
About 50% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors and the remaining 35% for retail investors.
The IPO comprises a fresh issue of equity shares up to Rs 150 crore and an offer for sale (OFS) of Rs 330 crore by promoters and selling shareholders.
HMA Agro Industries is one of the largest exporters of buffalo meat in India, accounting for more than 10% of India’s export of frozen buffalo meat. Its products are self-branded, packaged and exported to over 40 countries. India, after Brazil, is the second-largest exporter of buffalo meat in the world.
The company proposes to utilise the net proceeds of the fresh issue for funding working capital requirements of the company and other general corporate purposes.
There are no listed companies in India that engage in a business similar to that of HAM Agro Industries. The P/E ratio based on diluted EPS for FY22 is at 23.99 at the upper end of the price band. This compares with Nifty’s P/E of 21.59.Based on the upper end of the price band, the company commands a market valuation of Rs 2,929 crore.
The company said it is not contemplating any fresh issuance of equity shares as a pre-IPO placement. The anchor investment allotment will take place on June 19.
Aryaman Financial Services is acting as the book-running lead manager to the issue and Bigshare Services is the registrar.