HMA Agro Industries shares to list on Tuesday. What to expect?

economictimes.indiatimes.com:

HMA Agro Industries will list on the stock exchanges on Tuesday. Ahead of their stock market debut, the company's shares saw a sharp jump in grey market premium (GMP) from the previous week to Rs 40 apiece. From the upper price band of Rs 585, the listing is expected at a mild premium of 6-7%.

However, it is important to note that the grey market premium is just an indicator as to how the company's shares are stacked up in the unlisted market and are subject to change rapidly. The initial share sale, which comprised fresh equity issue of up to Rs 150 crore and an OFS of Rs 330 crore, was fully subscribed on the last day despite muted interest from retail investors. Most of the heavy lifting was done by NIIs and QIB, whose subscription rates stood at 2.97 times and 1.74 times, respectively.

Meanwhile, retail investors' subscription stood at just 96% at close. The response was tepid for the first few days, but the demand picked up on the last two days, taking the issue over the line. «HMA Agro Industries saw a decent subscription of 1.62 times.

However, the GMP suggests a subdued listing on the exchange. We advise investors to hold their subscription from a medium-term perspective,» said Ravi Singh, Vice President and Head of Research, Share India. Net proceeds from the fresh issue will be used for funding working capital requirements of the company and other general corporate purposes.

The company is one of the top three market leaders in the export of packaged frozen buffalo meat products from India. It has recently begun a product diversification process into other food processing and exports of products such as frozen fish and basmati rice. HMA Agro has long-standing relations with customers which are spread in various