• Source:JND
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Shares of HMA Agro Industries Ltd., a major frozen meat exporter, traded higher in intraday trade on Friday following the company's announcement to stock exchanges of a significant development involving its subsidiary. From its previous close of Rs 32.91, the stock opened higher on the BSE at Rs 33.05, and it reached an intraday high of Rs 33.70, a gain of 2.40%. At the moment, HMA Agro has a Rs 1,684 crore market capitalization. The 52-week range of the stock is between Rs 27.54 and Rs 59.44.

"We hereby inform you that one of the Company’s subsidiaries, HMA Natural Foods Private Limited (“Subsidiary”), has allotted 30,37,000 (Thirty Lakh Thirty-Seven Thousand) equity shares of face value Rs 10/- each at an issue price of Rs 10/- per share, aggregating to
Rs 3,03,70,000/- (Rupees Three Crore Three Lakh Seventy Thousand only) by way of conversion of loan into equity," the company said in a filing on May 15.

Following news that the company's subsidiary, HMA Natural Foods Private Limited, had converted existing loans into equity and distributed 30.37 lakh equity shares, the market responded favorably. Since there was no premium and the shares were issued at face value of Rs 10 each, there was no new capital infusion—rather, it was a calculated conversion of previously extended loans.

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"As per the email communication dated May 15, 2025, received from the Subsidiary, the above-mentioned equity shares have been credited into the Demat Account of the Company. The credit of shares has been duly confirmed by HMA Natural Foods Private Limited through a confirmation letter received from Central Depository Services (India) Limited (CDSL)," the filing added," the filing added.

On the last day of bidding on June 23, HMA Agro, which debuted on the stock market in 2023, launched an IPO worth Rs 480 crore, which was subscribed for 1.62 times. The IPO included an offer-for-sale (OFS) of Rs 330 crore and a new issue valued at Rs 150 crore, with a price range of Rs 555-585 per share.

Another encouraging development is that the company was recently given a "CARE A2+" rating by CARE Ratings for the short term for FY 2025–2026, indicating strong creditworthiness.

Despite not requiring additional funding, the recent equity allocation indicates a focus on subsidiary-level balance sheet strengthening and restructuring, a move that seems to have been well received by investors.

Also Read: Agri, Pharma, Electronics, Engineering Account For Over 50% Of India's Exports In FY25: Govt Data

Disclaimer: This is just a piece of news about recent development in the stock. Jagran does not advise investing. Please take expert advise before investing.