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:
HOAC FOODS INDIA IPO Details |
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IPO Date | May 16, 2024 to May 21, 2024 | ||||||||||
Listing Date | May 24, 2024 | ||||||||||
Face Value | ₹10 per share | ||||||||||
Price | ₹48 per share | ||||||||||
Lot Size | 3000 Shares | ||||||||||
Total Issue Size | ₹5.54 Cr | ||||||||||
Fresh Issue | 1,155,000 shares (aggregating up to ₹5.54 Cr) | ||||||||||
Offer for Sale | Nil | ||||||||||
Issue Type | Fixed Price Issue IPO | ||||||||||
Listing At | NSE SME | ||||||||||
Share holding pre issue | 2,688,210 | ||||||||||
Share holding post issue | 3,843,210 |
HOAC FOODS INDIA IPO Lot Size |
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Application | Lots | Shares | Amount | ||||||||
Retail (Min) | 1 | 3000 | ₹144,000 | ||||||||
Retail (Max) | 1 | 3000 | ₹144,000 | ||||||||
HNI (Min) | 2 | 6,000 | ₹288,000 |
HOAC FOODS INDIA IPO Timeline (Tentative Schedule) |
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IPO Open Date | Thursday, May 16, 2024 | ||||||||||
IPO Close Date | Tuesday, May 21, 2024 | ||||||||||
Basis of Allotment | Wednesday, May 22, 2024 | ||||||||||
Initiation of Refunds | Thursday, May 23, 2024 | ||||||||||
Credit of Shares to Demat | Thursday, May 23, 2024 | ||||||||||
Listing Date | Friday, May 24, 2024 | ||||||||||
Cut-off time for UPI mandate confirmation | 5 PM on May 21, 2024 |
HOAC FOODS INDIA IPO Reservation |
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Investor Category | Shares Offered | Reservation % | |||||||||
Anchor Investor Shares Offered | - | ||||||||||
Market Maker Shares Offered | 93,000 (8.05%) | N/A | |||||||||
Other Shares Offered | 531,000 (45.97%) | N/A | |||||||||
Retail Shares Offered | 531,000 (45.97%) | N/A | |||||||||
Total Shares Offered | 1,155,000 (100%) | N/A |
HOAC FOODS INDIA IPO Promoter Holding |
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Share Holding Pre Issue | 99.99% | ||||||||||
Share Holding Post Issue | 69.95% |
HOAC FOODS INDIA IPO Subscription Status |
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Investor Category | Shares Offered | Shares Bid For | No oF Times Subscribed |
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:
Period Ended | 31st Dec 23 | 31st Mar 23 | 31st Mar 22 | 31st Mar 21 |
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Reserve of Surplus | 0.46 | 1.35 | 0.76 | 0.22 |
Total Assets | 7.66 | 4.91 | 3.59 | 2.08 |
Total Borrowings | 2.04 | 1.90 | 1.47 | 1.28 |
Fixed Assets | 0.98 | 0.68 | 0.43 | 0.35 |
Cash | 0.28 | 0.33 | 0.59 | 0.56 |
Net Borrowing | 1.76 | 1.57 | 0.88 | 0.72 |
Revenue | 11.49 | 12.09 | 10.87 | 7.42 |
EBITDA | 1.32 | 1.14 | 0.60 | 0.36 |
PAT | 0.74 | 0.58 | 0.27 | 0.12 |
EPS | 2.84 | 3.19 | 2.31 | 1.51 |
Key Performance Indicator |
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KPI | Values | ||||||||||
EPS Pre IPO (Rs.) | 2.16 | ||||||||||
EPS Post IPO (Rs.) | 2.57 | ||||||||||
P/E Pre IPO | 22.25 | ||||||||||
P/E Post IPO | 18.70 | ||||||||||
ROE | 37.48% | ||||||||||
ROCE | 30.12% | ||||||||||
P/BV | 4.09 | ||||||||||
Debt/Equity | 0.65 | ||||||||||
RoNW | 37.48% |
HOAC FOODS INDIA Limited IPO Peer Comparison |
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Company Name | EPS | ROCE | ROE | P/E (x) | P/Bv | Debt/Equity | RoNW (%) | ||||
HOAC FOODS INDIA Limited | 2.16 | 30.12% | 37.48% | 22.25% | 4.09 | 0.65 | 37.48% | ||||
Contil India Ltd | 3.17 | 12.8% | 8.81% | 49.2 | 5.81 | 0.00 | 12.8% | ||||
Jetmall Spices and Masala Ltd | 0.48 | 3.99% | 3.03% | 29.2 | 0.87 | 0.00 | 3.99% |
HOAC FOODS INDIA LIMITED
D-498, 1st Floor Palam Extension Sector-7 Dwarka, Raj Nagar - II,South West Delhi, New Delhi, Delhi, India, 110077
Tel: +91 85272 73940
Email: info@attahariom.com
Website: https://www.hoacfoodsindia.com/
KFIN TECHNOLOGIES LIMITED
Selenium Tower- B, Plot 31-32, Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad-500 032, Telangana, India
Tel No.: +91 40 6716 2222
Website: www.kfintech.com
Email: hoacfoods.ipo@kfintech.com
HOAC Foods India Ltd. (HFIL) manufactures flour, spices, pulses, grains, and mustard oil, selling them under the "HARIOM" brand in Delhi-NCR through its exclusive outlets. The company focuses on organic products, avoiding artificial preservatives and chemicals. Over the past three years, HFIL reported an average EPS of Rs. 2.62 and an average RoNW of 34.67%. The IPO is priced at a P/BV of 4.09 based on a NAV of Rs. 11.74 (as of December 31, 2023). The P/E ratio is 18.70 for FY24 earnings and 22.25 for FY23 earnings, indicating a fully priced issue. HFIL operates in a competitive market and has shown average financial performance. Investors with cash surplus might consider investing moderately for the medium term.
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