Penny Stock Under Rs 50 Jumps as Its Subsidiary Converted Rs 3.04 Crore Loan to Equity, Raising Parent Shareholding to 95.66 Per Cent
The company has a market cap of Rs 1,685 crore and the stock is up by 22.4 per cent from its 52-week low of Rs 27.54 per share.
On Friday, the shares of HMA Agro Industries Ltd jumped 2.4 per cent to Rs 33.70 per share from its previous closing of Rs 32.91 per share. The stock’s 52-week high is Rs 59.44 per share and its 52-week low of Rs 27.54 per share.
HMA Agro Industries Limited has announced that its subsidiary, HMA Natural Foods Private Limited, has issued 30,37,000 equity shares, each with a face value of Rs 10, at par. This allotment, totalling Rs 3,03,70,000, was executed by converting an existing loan from the parent company into equity. As a result of this conversion, HMA Agro Industries Limited's stake in HMA Natural Foods Private Limited has increased from 90.36 per cent to 95.66 per cent. This transaction, completed on May 15, 2025, is considered a related party transaction as both companies share common promoters, and it solely involved the conversion of previously extended loans, without any new capital infusion.
HMA Natural Foods Private Limited, an existing subsidiary incorporated on November 8, 2011, operates in the agro-based industry. The company has reported nil turnover for the last three fiscal years (FY2021- 22, FY2022- 23 and FY2023- 24). The conversion of the outstanding loan into equity aims to strengthen the company's equity base and aligns with HMA Agro Industries Limited's internal financial restructuring, rather than representing a new acquisition of a distinct business line.
In a separate development, the Board acknowledged the credit rating assigned by CARE Ratings Limited. The short-term rating for the financial year 2025-26 is CARE A2+, which reflects the company's strong liquidity, operational performance, and positive business outlook. HMA Agro Industries reported outstanding borrowings of Rs 502.88 crore and had previously achieved a peak short-term credit rating of "CARE A2+" on March 28, 2025, for bank facilities totalling Rs 850 crore across multiple banks. The company is also aware of potential fines payable to the BSE for any shortfall in required borrowing under the stipulated framework.
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HMA Agro Industries Ltd, founded in 2008, is a leading Indian food trade company specialising in handling and exporting a variety of food and agricultural products. They are one of the biggest exporters of frozen buffalo meat in India, accounting for over 10 per cent of the nation's total exports in this category. Its offerings include frozen fresh buffalo meat, prepared and frozen natural products, vegetables, and cereals. The company's brands "Black Gold", "Kamil", and "HMA" are shipped to over 40 countries around the world. HMA Agro Industries has a strong focus on meat processing, operating four integrated plants in Aligarh, Mohali, Agra, and Parbhani, with plans to expand by setting up a fifth facility in Haryana.
The company has a market cap of Rs 1,685 crore and the stock is up by 22.4 per cent from its 52-week low of Rs 27.54 per share. The shares of the company have an ROE of 17 per cent and an ROCE of 14 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.