.jpeg "/hma-agro-ipo-market-conditions-drive")
Introduction:
In the latest update on HMA Agro Industries Ltd's initial public offering (IPO), the shares are commanding a 2-4% premium in the grey market, indicating favorable market conditions. However, certain factors such as tepid investor response, rich valuations, and a larger portion allocated to the offer-for-sale (OFS) than fresh shares could be contributing to this phenomenon. The share allotment details will be announced on June 29, 2023. Although the IPO saw limited interest from retail investors, it garnered full subscription, thanks to strong support from qualified institutional buyers (QIBs) and high net worth individuals (HNIs).
HMA Agro IPO Subscription Details:
During the four-day subscription period from June 20 to June 23, the HMA Agro IPO was subscribed 1.62 times. Notably, QIBs oversubscribed their allotted quota by 1.74 times, while HNIs bid for 2.97 times the portion reserved for them. On the other hand, the retail investors' segment was subscribed to 96 percent of the available shares.
.jpeg "/hma-agro-ipo-market-conditions-drive")
Capital Raised and Composition:
HMA Agro, a prominent exporter of frozen buffalo meat with over 10 percent market share, successfully raised Rs 480 crore through its maiden IPO. The offering consisted of a fresh issue of shares worth Rs 150 crore and an offer-for-sale (OFS) worth Rs 330 crore by the promoters.
Conclusion:
Despite mixed response from investors, the grey market is witnessing a premium of 2-4% for HMA Agro shares, indicating positive market sentiment. The company's IPO received substantial support from QIBs and HNIs, leading to full subscription. However, retail investors showed comparatively lower interest. The share allotment details will be disclosed on June 29, 2023, shedding more light on the distribution of shares among the participants.
