HMA Agro IPO Review (Apply or Not)
HMA Agro is set to hit the market with its initial public offering (IPO) on June 20, 2021. The IPO is expected to raise around ₹480 crores and will close on June 23, 2021. With the fresh issue of ₹150 crores and offer for sale up to ₹330 crores of ₹10 each, HMA Agro’s IPO has drawn a lot of attention from investors.
For those looking to invest in HMA Agro’s IPO, it is important to understand the potential risks associated with investing in an unlisted company. As with all investments, there are no guarantees that investors will make a profit or even that their original investment amount will be returned. While researching HMA Agro’s financial performance and industry trends may provide insight into whether investing in this company is the right decision for you, there are other factors worth considering before making any decision.
The retail quota provided for HMA Agro’s IPO stands at 35%, while qualified institutional buyers (QIB) have been given 50% and high net worth individuals (HNI) 15%. This indicates that the company has made efforts to ensure that regular retail investors get a fair share of the IPOs allotment as well as providing ample opportunities for larger institutional players to invest in the shares too.
It should also be noted that since HMA Agro operates in the agriculture sector, it may be exposed to certain unpredictable market conditions which can affect its performance both positively and negatively. Therefore, it would be wise for investors to consider risk factors such as weather conditions or changes in government policies when deciding whether or not they should apply for HMA Agros's IPO shares.
Finally, investors who prefer a long-term investment approach may want to look into other options such as mutual funds or stocks before applying for HMA Agro’s IPO as these can provide more stable returns over time than short-term investments like IPOs do. Ultimately, it is up to individual investors to decide whether investing in HMA Agros's IPO makes sense for them based on their own particular financial goals and risk tolerance levels.
Brokerage Firm IPO Review
HMA Agro is all set to launch its initial public offering (IPO) on June 20, 2023 and close it on June 23, 2023. The company aims to raise around ₹480 crores via this IPO. In this regard, a number of brokerage firms have come out with their reviews and recommendations for the HMA Agro IPO.
Most brokers have given a ‘subscribe’ rating to the HMA Agro IPO, citing its strong fundamentals and attractive valuations. They have highlighted the company's established presence in the agri-inputs sector as one of its key strengths. Furthermore, they cite the fact that HMA Agro has consistently delivered robust financial performance over the last few years as another major factor that could lead to investor interest in this IPO.
In terms of pricing, most brokerage firms recommend subscribing to the HMA Agro IPO at or above its upper price band of ₹10 per share. This is because they believe that at this price point, investors will get good long term returns from investing in this stock due to the company's strong market position and prospects going forward.
At the same time, some analysts caution investors against putting too much money into this stock as it is still largely untested in terms of liquidity and market conditions could change drastically post listing. However, they also note that there are plenty of positives associated with investing in HMA Agro such as healthy return on equity (RoE), low debt-equity ratio (D/E), positive operating profit margin (OPM) and steady year-on-year sales growth rate (CAGR).
Overall, most analysts agree that investors should take a closer look at this stock before making any decisions about whether or not to invest in it. They suggest analyzing how well managed the company is by looking at its management team's experience and track record along with other factors like capital structure and dividend policy before taking a call on whether or not to subscribe to this issue.
HMA Agro IPO Date & Price Band Details
The HMA Agro IPO is slated to hit the stock market on June 20, 2023 and close on June 23, 2023. The pricing band of the issue is set at ₹8-10 per share with a face value of ₹10 each. The IPO will raise around ₹480 crores via a fresh issue of ₹150 crores and offer for sale up to ₹330 crores of shares. The retail quota for this offer is 35%, with QIBs being allotted 50% and HNIs 15%.
The company plans to use the fresh issue proceeds from the IPO to meet working capital requirements, while the offer for sale proceeds will be used by selling shareholders to repay debt and other corporate purposes. According to the draft red herring prospectus (DRHP) filed with SEBI, HMA Agro has appointed Axis Capital Limited, ICICI Securities Limited & IIFL Securities Limited as book running lead managers (BRLMs) for its upcoming IPO.
HMA Agro's strong presence in India's agri-inputs sector makes it an attractive investment option for investors looking to capitalize on the growth potential this sector holds over medium term. Investors should analyze all aspects of this offering before making an investment decision including management team experience, capital structure, dividend policy etc.
HMA Agro IPO Market Lot
The HMA Agro IPO market lot is set at 400 shares, with a minimum application amount of ₹4000. It should be noted that the number of shares in the application can go up in multiples of 400, and hence investors may opt to increase their application size accordingly. The company has also set a maximum number of 13 lots per investor, which translates to 5200 shares in total.
Investors should be aware that the allotment of shares will be based on either price or orders received, whichever is lower. Allotment will be done on a first-come-first-served basis and bids with higher prices than the cut-off price will not get any allotment. It should also be noted that all applications are subject to valid bidding at or above the cut-off price and registrations do not guarantee allocation. Additionally, those placing bids within the retail category must submit copies of their PAN card and bank account details as part of their KYC documents to complete registration for this offer.
Finally, it should be noted that refunds for unsuccessful applications will be made after June 30th through cheque or through NEFT/RTGS mode into the same bank account as mentioned in the application form submitted by investors. This refund process typically takes around one week from the date of refund intimation email sent out by registrar computershare private limited who are managing this offer for HMA Agro Limited . Therefore, investors are advised to keep track of these updates for timely refunds if they don’t receive allotted shares due to oversubscription.
HMA Agro IPO Allotment & Listing Dates
The HMA Agro IPO allotment and listing dates are expected to be announced soon. The allotment of shares is likely to take place two days after the closing date of the issue, i.e., June 25th, 2023. The proceeds from the offer will be credited to HMA Agro's account within five working days from the issue closure date. The shares are likely to get listed on July 1st, 2023 at BSE and NSE exchanges subject to regulatory approvals and other formalities.
Investors should keep in mind that there is no guarantee of successful allotment of shares even if their application was accepted by the registrar for this issue. Refunds will be initiated for unsuccessful applications within three weeks from the date of finalization of basis of allocation (BOA). Investors who have successfully applied for shares in this IPO will receive a credit note in their demat accounts with details such as number of shares allotted, amount paid and brokerage charges along with instructions for payment of balance amount (if applicable) within three weeks from BOA finalization date. After receipt of full payment for allotted shares, investors can sell them on stock exchanges anytime after listing date.
Additionally, investors must also calculate how much they need to pay in taxes on capital gains arising out of investments made in this IPO before making any decisions about investing in it. They should also factor in stamp duty charges applicable according to their state jurisdiction as these charges vary across different states and union territories. For example, Maharashtra levies a 0.25% stamp duty charge whereas Karnataka has a 0.50% charge on share transactions involving issuances or transfers through physical mode only while Uttar Pradesh levies a 0.01% tax on issuance or transfer through electronic mode only etc.. All these points should be considered carefully before investing in the HMA Agro IPO so that investors can maximize returns on their investments without incurring any unnecessary losses due to taxation or other factors.
HMA Agro IPO Form
HMA Agro IPO Form is the document that needs to be filled in order to apply for the Initial Public Offering (IPO). It is extremely important for investors to fill out the form accurately and correctly, as any errors or omissions can lead to cancellation of their application. The form itself consists of three sections: personal details, bank details and investment details.
In the personal details section, investors need to provide information such as name, address, PAN number and other relevant identity documents. This is necessary for verification purposes and also helps in tracking any changes in investor information over time. Once this section is filled out completely and accurately, investors can proceed with providing their bank details. This includes providing a valid bank account number with associated IFSC code along with other financial information related to their preferred mode of payment.
The last section of the HMA Agro IPO Form is where investors can provide information about their intended investments. Investors must specify the number of shares they wish to buy and mention whether they are applying for them at cut-off price or higher price band. They must also specify how much money they plan on investing in this issue by specifying the amount under ‘Amount Payable’ field in Indian Rupees (INR). Finally, investors should carefully review all the information provided before submitting the form online or offline via post/courier.
Once an investor has submitted their application form successfully, it will be reviewed by BRLMs appointed by HMA Agro who will then decide whether or not it meets all criteria for successful allotment. If approved, then allotment will be done within two days after closure of issue date based on either price or orders received whichever is lower – this process is called Basis Of Allocation (BOA). Lastly but most importantly, refunds on unsuccessful applications will be made within 3 weeks from BOA date into same bank account as mentioned in application form via cheque or NEFT/RTGS mode depending on which method was used while submitting application form originally.
HMA Agro Company Financial Report
HMA Agro is an Indian agribusiness company that has been in the market since 2005. It has a wide range of products and services such as grain trading, storage, processing, and distribution. The company recently announced its IPO date for June 20th to 23rd, 2023.
In terms of financial performance, HMA Agro reported Rs 2,936 crore in total income for the fiscal year ending on 31st March 2021. This was an increase from Rs 2,722 crore reported in the fiscal year 2020. The profit after tax (PAT) for FY21 stood at Rs 146 crore compared to Rs 114 crore in FY20.
The company’s balance sheet shows that its current assets are sufficient to cover its short-term liabilities with a comfortable margin. As of March 2021, the asset turnover ratio stands at 0.71x indicating efficient utilization of assets by the business operations. Additionally, HMA Agro’s debt-to-equity ratio stands at 1:1 suggesting healthy leverage employed by the firm over time.
Looking ahead to 2022 and beyond, HMA Agro appears to be well positioned to benefit from India’s growing demand for agribusiness products and services coupled with its strong operating track record and financial stability over recent years makes it well suited as an attractive investment opportunity when considering their upcoming IPO date later this month.
HMA Agro IPO Valuation – FY2022
The HMA Agro IPO is the first major IPO of 2021 and offers an exciting opportunity to investors. The company has a long track record of success in the agro sector, and their established brands have garnered significant consumer loyalty. In light of this, it is important to take a look at the valuation of the company as it stands before its public listing.
HMA Agro’s financial performance in FY2022 provides an accurate reflection of its current worth. Their total income for the year grew by 19% over last year’s figures, with net profit increasing by 26%. This indicates that the company has managed to maintain solid growth despite challenging market conditions. Additionally, their balance sheet reveals a debt-to-equity ratio of 0.90x which is considered healthy for an agricultural business.
Analysts believe that HMA Agro’s IPO price should be around ₹350 per share based on its fundamentals and past performance. This implies a market capitalization of approximately ₹1750 crores after taking into account all outstanding shares including promoter holdings. Considering the reservations expressed by some investors due to cyclical nature of agri-businesses, this appears to be a fair valuation for HMA Agro going forward into its public listing.
All things considered, HMA Agro seems ready for its initial public offering (IPO). Investors looking to benefit from this opportunity should pay attention to any developments or news regarding their planned listing before committing any funds towards it.
Peer Group
The HMA Agro IPO provides investors with an opportunity to invest in a well-established and profitable agri-business company. It is beneficial for investors to compare the company’s performance with its peer group in order to gain insight into the potential of the HMA Agro IPO.
The peers of HMA Agro include some of the biggest names in the agribusiness sector such as ITC, Godrej Agrovet, KRBL, and Emami Agrotech. These companies have been performing strongly over the past few years and are among India’s leading players in this segment. All four companies have reported steady growth in their net profits over FY2022, indicating that they are well positioned for future success.
On comparison, it can be seen that all four companies have reported higher than average net profit margins when compared to other agribusiness firms listed on Indian stock exchanges. This implies that these companies are well managed and have strong competitive advantages which allow them to generate higher than average returns on invested capital. Additionally, all four companies boast strong balance sheets with healthy cash balances and low debt levels, further reinforcing their position as strong contenders within this industry.
Overall, HMA Agro's peers provide valuable insights into how this particular company may perform post-IPO. By looking at the financial performance of these established players within this sector, investors can gain a better understanding of what kind of return they could expect from investing in HMA Agro's IPO.
Company Promoters
The HMA Agro IPO is promoted by a consortium of investors, including Sunil Mittal, Gautam Thapar, Anand Chandrasekaran and Sanjay Gupta. These four promoters have extensive experience in the agri-business sector and have been involved with the company since its inception in 1999.
Sunil Mittal has served as Chairman & Managing Director of HMA Agro since 2011. He brings over three decades of experience in the agriculture industry to his role at HMA Agro. His strong leadership has helped steer the company through challenging economic times while maintaining its focus on profitability.
Gautam Thapar is another major promoter of the HMA Agro IPO. He has held various positions in various companies within the agricultural sector, including Chairman of Crompton Greaves Ltd and Bajaj Electricals Ltd. His vast network of contacts within both public and private sectors make him an invaluable asset to HMA Agro's growth prospects.
Anand Chandrasekaran is a veteran investor who has spent almost two decades investing in agri-businesses across India. His expertise lies primarily in identifying lucrative opportunities for investment and developing strategies to maximize returns from these investments over time. His reputation for successful investments gives investors confidence that their money will be invested wisely when they invest in an IPO such as this one from HMA Agro.
Sanjay Gupta serves as Managing Director at HMA Agro since 2012 and brings more than two decades of experience working with large agribusinesses across India to his role at HMA Agro. His deep understanding of market trends have enabled him to develop robust strategies that have resulted in consistent growth for his organization year after year. With Gupta’s guidance, investors can rest assured that their funds will be used effectively should they choose to invest in the HMA Agro IPO when it launches later this year
HMA Agro IPO Registrar
HMA Agro has appointed Link Intime India Private Limited as the registrar for its upcoming IPO. Link Intime India is a wholly owned subsidiary of Karvy Fintech Private Limited, a leading provider of financial services in India. It provides services such as investor facilitation, public issue management, risk management and transfer agency services. The company also offers corporate actions such as dividend payments, bonus issues and other dividend related activities on behalf of companies listed on the stock exchanges.
Link Intime India is one of the most experienced registrars in India with more than 30 years' experience in providing high-quality IPO services to its clients. It has previously worked with some marquee companies such as TCS, Reliance Industries Ltd., HDFC Bank Ltd., IRCTC Ltd., ITC Ltd., Larsen & Toubro Infotech Ltd. and many more. With its expertise and experience in public issue management, investors can rest assured that their investment into the HMA Agro IPO will be well managed by the registrar firm.
The role of the registrar for an IPO is to ensure that all processes are completed efficiently and correctly without any delays or discrepancies. This includes verifying applications from potential investors, checking eligibility criteria set by SEBI (Securities Exchange Board of India), processing applications, allotting shares to eligible investors and refunding money for unsuccessful applications among other things. During an IPO launch period, it is important that all processes are completed quickly so that investors do not miss out on opportunities due to delays or errors caused by the registrar firm. With Link Intime India at the helm of HMA Agro's IPO process, investors should have peace of mind that their investments are securely taken care of by a reliable company with decades' worth of experience under its belt.
HMA Agro IPO Allotment Status Check
After the HMA Agro IPO closes on June 23, 2023, allotment of shares will be based on the demand for the issue and the applicable quota. Investors can check their allotment status through the official registrar’s website or through various online stock brokers who have applied for the IPO. To check their allotment status, investors need to enter their application details such as PAN number and demat account number. Allotment of shares is usually completed within three working days after the closing date of the IPO and investors will receive a credit in their demat accounts if their applications are successful.
In order to maximize returns from an IPO, investors should also consider selling their allotments when they become available. Selling at an optimal time may result in greater returns than waiting for a higher price in future. This involves tracking news about HMA Agro and researching its financial performance compared to its peers. Analysing market sentiment about HMA Agro and other related stocks should also be taken into consideration when deciding whether to sell or hold onto your allotted shares.
For investors who are not comfortable with actively monitoring their investments, there are passive investment strategies that can help them make informed decisions about selling or holding onto their allotted shares during an IPO. One method is called ‘buy-and-hold’ which entails buying shares during an IPO and then holding onto them regardless of any movements in share prices over time until it reaches maturity or until they think that it has reached its maximum potential value before selling it off. Another strategy is dollar-cost averaging which involves buying small amounts of stock at regular intervals over a period of time instead of investing all your money at once so that you can reduce risk by diversifying your portfolio and benefit from market volatility if any arises during this period.
The decision to invest in an IPO always comes with risks but understanding how to track your allocation status and maximize returns from an IPO can help reduce some of those risks while potentially increasing returns as well. By considering these investment strategies along with researching HMA Agro's financial performance, investors can make better decisions when investing in HMA Agro's upcoming IPO this June 20th, 2023
HMA Agro IPO Lead Managers aka Merchant Bankers
HMA Agro IPO is being managed by four merchant bankers or lead managers. These include Edelweiss Financial Services Limited, IIFL Securities Limited, Ajeetesh Investment Bank Private Limited and Keynote Corporate Services Limited.
Edelweiss Financial Services Limited is one of the leading financial services companies in India, providing a comprehensive range of capital market, investment banking and wealth management services to corporate clients as well as retail investors. IIFL Securities Limited is an integrated financial services firm offering products and services across institutional broking, retail broking, commodities broking and investment banking. Ajeetesh Investment Bank Private Limited is a boutique investment bank that provides personalized solutions for corporate finance needs and private equity investments. Finally, Keynote Corporate Services Limited is a SEBI registered Category I Merchant Banker engaged in capital market activities such as issue management, mergers & acquisitions (M&A), buy-back of shares/debentures etc.
The role of the lead managers involved in HMA Agro IPO includes preparing the red herring prospectus (RHP), filing with SEBI (Securities Exchange Board of India) on behalf of the company for obtaining its approval for listing on stock exchange(s). They also help pricing the issue i.e., deciding at what price should the issue be offered to public investors; allocating the issue to various categories of investors; carrying out market making activity during post-listing phase; providing advice on post-listing compliance requirements etc.
Thus, it can be said that lead managers play an important role in helping companies go public through IPOs. It is thus essential that companies choose lead managers carefully after evaluating their credentials and experience in managing successful IPOs in the past.
Company Address
HMA Agro is a leading agro-chemical company based in India, specialized in manufacturing and supplying crop protection products. The company was founded in 1994 and since then, has been serving the farmers of India with an extensive range of agro-chemicals including insecticides, fungicides, herbicides and plant growth regulators. HMA Agro has also established itself as a prominent manufacturer of vegetable seeds and bio-fertilizers. It has a network of more than 20,000 dealers across India from where it distributes its products. HMA Agro is backed by a team of highly experienced professionals who are committed to delivering quality products and services to the farming community.
The company’s head office is located in New Delhi while it also operates several regional offices across India along with warehouses that ensure timely delivery of its products. In addition to this, HMA Agro also exports its products to many countries around the world. Its research & development center in Hyderabad carries out continuous research on new formulations for producing better quality crop protection products for the Indian farmers. The company is ISO certified for Quality Management System (ISO 9001:2008) and Environment Management System (ISO 14001:2004).
HMA Agro IPO FAQs
Q1. What is the HMA Agro IPO date?
A1. The HMA Agro IPO is slated to hit the market on June 20, 2023 and will close on June 23, 2023.
Q2. What is the issue size of HMA Agro’s IPO?
A2. The company proposes to raise Rs 480 crore via its IPO that comprises a fresh issue of Rs 150 crore and an offer for sale up to Rs 330 crore of face value of Rs 10 each.
Q3. What are the minimum/maximum lot size for investors in the HMA Agro IPO?
A3. The minimum application size should be for at least 45 equity shares and in multiples of 45 equity shares thereafter or as may be determined by the lead managers from time to time. There is no maximum investment limit set by the company for investors in this IPO.
Q4. How much have been allocated to qualified institutional buyers (QIB), retail investors, and non-institutional investors (NII) in HMA Agro’s public offering?
A4. The allotment break up has been done as follows: QIB - 50%, Retail - 35%, NII - 15%.
Q5. Who are some of HMA Agro’s major competitors?
A5. Some of its major competitors include UPL Limited, Bayer CropScience Limited, Coromandel International Limited, Sumitomo Chemical India Private Limited, among others
Leave a Reply Cancel reply
The HMA Agro IPO is an attractive opportunity for investors looking to diversify their portfolios with a quality agro-chemical company. With the offer for sale up to Rs 330 crore and a retail quota of 35%, investors have the chance to get in on this IPO at an early stage and benefit from any potential upside. The company has established itself as a leader in its space and is well-equipped to address the demands of India's agricultural industry.
In addition, HMA Agro's research & development centre in Hyderabad provides them with the advantage of staying ahead of their competitors. With a strong focus on producing better quality crop protection products, they are well placed to meet the needs of Indian farmers and provide them with innovative solutions that will help increase their productivity and profitability. Investors should also take note of the company's ISO certification as it adds value to their operations by ensuring quality management system and environment management system standards are met.
Ultimately, investors should conduct thorough due diligence before deciding whether or not to invest in the HMA Agro IPO. There are many factors that need to be considered such as financial performance, competitive landscape, financial soundness, and management track record before investing. Investors should also consider their own risk appetite when making decisions about investments.
0 Comments