The Hariom Atta & Spices IPO is a fixed price issue totaling Rs 5.54 crores, consisting entirely of a fresh issue of 11.55 lakh shares. The subscription period for this IPO opened on May 16, 2024, and will close on May 21, 2024. The allotment is anticipated to be finalized on May 22, 2024, with the shares expected to list on the NSE SME on May 24, 2024.

Priced at ₹48 per share, the minimum lot size for an application is 3,000 shares, requiring a minimum investment of ₹144,000 for retail investors. High Net-worth Individuals (HNIs) must invest in a minimum of 2 lots, amounting to 6,000 shares or ₹288,000.

GYR Capital Advisors Private Limited is serving as the book running lead manager for the IPO, with Kfin Technologies Limited as the registrar and Giriraj Stock Broking as the market maker.

Company proposes to utilize the funds towards:

1. Funding the working capital requirements of the company
2. General Corporate Purposes

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About HOAC FOODS INDIA Limited

HOAC FOODS INDIA LIMITED, engaged in the manufacturing of flour (chakki atta), herbs & spices, unpolished pulses, grains, and yellow mustard oil in product range and markets & sell it in and around Delhi-NCR under the brand name “HARIOM” through their extensive franchisee network comprised of 4 company-owned outlets and 6 franchisee-owned outlets, totaling 10 Exclusive Brand Outlets.

The company procures its raw materials from various parts of the country and process their products with utmost care without using artificial preservatives or chemicals, thereby creating a product portfolio of organic spices and flour, which carry the freshness and goodness of each ingredient.

With manufacturing facility in Gurugram, the company manages the product portfolio of 4 categories which include products such as, Spices & Herbs, Oil, Wheat Flour (Chakki Atta) & Healthy Flour, Pulses, Rice & Grain and other food products with 153 product SKUs, thereby addressing a wide variety of tastes and preferences.

FMCG market reached US$ 167 billion as of 2023. Total revenue of FMCG market is expected to grow at a CAGR of 27.9% through 2021-27, reaching nearly US$ 615.87 billion. In 2022, urban segment contributed 65% whereas rural India contributed more than 35% to the overall annual FMCG sales.

Good harvest, government spending expected to aid rural demand recovery in FY24. The sector had grown 8.5% in revenues and 2.5% in volumes last fiscal year. In the January-June period of 2022, the sector witnessed value growth of about 8.4% on account of price hikes due to inflationary pressures. In Q2, 2022, the FMCG sector clocked a value growth of 10.9% Y-o-Y higher than the 6% Y-o-Y value growth seen in Q1.

Risk Associated to the issue:

• The company do not manufacture some of thier products such Pulses, Rice, Raw or Sabut Spices, Grains and Millets and Sugar and jaggery etc in their own capacity but procure the same from third party suppliers.
• They operate in highly competitive markets, and the scale and resources of some of their competitors may allow them to compete more effectively than the company can.
• The company do not have long-term agreements with suppliers for their raw materials and an increase in the cost of or a shortfall in the availability of such raw materials could have an adverse effect.
• The company requires significant amount of working capital for a continuing growth. Inability to meet working capital requirements may adversely affect results of operations.
• Limited operations only in Delhi -NCR.