HMA Agro Industries Ltd., a government-recognized exporter of frozen buffalo meat and a global player, had its board approve the company's first-ever stock split proposal on Wednesday, November 8, 2023. This decision comes after a final dividend payout in September. The equity share face value of ₹10 will be divided into ten shares each worth ₹1, with the aim to enhance liquidity and affordability, pending regulatory approval. The current market price stands at ₹664.95.
The stock split follows the company's successful initial public offering (IPO) in June 2023, where it offered its shares at ₹585 per share. The shares debuted on the Bombay Stock Exchange (BSE) at ₹615 each, surpassing the IPO price range of ₹555–585 by over 5%. On the National Stock Exchange (NSE), the shares launched at a premium of 6.8%, or ₹625, reflecting strong investor confidence. The IPO was structured with a promoter offer for sale and a fresh offering. The shares were listed on BSE and NSE on July 4th, trading above the IPO's upper price band and achieving a near 6% premium. The IPO had a subscription rate of 1.62 times and raised ₹480 crore (INR100 crore = approx. USD12 million).
On Thursday, November 9, 2023, shares opened at Rs 680 on the BSE but later traded lower. The record date for the equity share sub-division is yet to be decided.
In the second quarter of fiscal year 2023-24, HMA Agro reported a total income of ₹1,184.79 crore, representing a year-on-year growth of 56.3% and a quarter-on-quarter increase of 23.3%. These figures underline the positive impact of the IPO price range, share sub-division, and NSE premium on the company's financial performance. However, despite a year-on-year rise of over 15%, the net profit for this quarter decreased to ₹38.17 crore from the previous quarter's ₹42.72 crore.
The company's shareholding distribution was reported during this period with promoters holding the majority stake. The scrip's 52-week highs and lows were also noted, reflecting its trading status. The record date for the stock split, approved during the July to September 2023 quarter, is yet to be announced.
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