HOAC FOODS INDIA IPO Review - Issue Date, Price, GMP, Allotment, Lot Size, and Details

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

HOAC FOODS INDIA IPO Details

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

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)

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

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

Share Holding Pre Issue 99.99%
Share Holding Post Issue 69.95%

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.

HOAC FOODS INDIA Limited Financial Information (Restated Consolidated)

Amount in (Rs. Crore)

Period Ended 31st Dec 23 31st Mar 23 31st Mar 22 31st Mar 21
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

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

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 Contact Details

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/

HOAC FOODS INDIA IPO Registrar and Lead Manager(s)

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 IPO Review

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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