Delhi-based food product manufacturer, HOAC Foods India Limited, has finally decided to launch its IPO on May 16, 2024. The IPO will consist of 11,55,000 equity shares with a face value of Rs. 10 each, offered at a fixed price of Rs. 48 per share, aiming to raise Rs. 5.54 crore.
The company specialises in the production of organic spices, grains, pulses, flour and mustard oil from handpicked raw materials and processed without artificial preservatives, ensuring freshness and quality for consumers in the Delhi-NCR markets.
Let us find out more information on the HOAC Foods India Limited IPO so we can make a sound investment decision.
Additional Read: Hoac Foods India Ltd IPO
IPO Details
Take a look at the table below to get a quick idea of the upcoming IPO set to be launched by HOAC Foods India Limited.
IPO Launch Date
| May 16, 2024 to May 21, 2024
|
Issue Type
| Fixed Price IPO
|
Listed at
| NSE Emerge
|
Issue Price
| Rs. 48 per share
|
Face value
| Rs. 10 per share
|
Minimum Lot Size
| 3,000 shares (Retail Investors)
|
Fresh Issue Size
| 11,55,000 shares
|
OFS Size
| NIL
|
Total Issue Size
| Rs. 5.54 crore
|
Shareholding Pre-Issue
| 26,88,210
|
Shareholding Post-Issue
| 38,43,210
|
About the Company
HOAC Foods India Limited, also known as Hariom Atta & Spices, has been operating in the manufacturing sector since 2018. The company specialises in producing flour, spices, grains, yellow mustard oil and unpolished pulses, primarily targeting customers in and around the Delhi-NCR region. With a diverse product portfolio comprising 153 SKUs, they have established a strong presence in the regional food market.
The company operates ten exclusive brand stores, out of which four are self-owned and six are franchisee-owned outlets. Its manufacturing facility is located in Gurugram, where all products are manufactured and packaged under the brand name 'HARIOM'. Furthermore, the company's manufacturing facilities hold accreditation from FSSAI under the Food Safety and Standards Act 2006.
Building on its success and solid foundation, HOAC Foods India Ltd has decided to pursue an IPO this year. This move aims to raise capital to meet various objectives, including fulfilling working capital requirements, addressing general corporate purposes and fueling its expansion plans.
Additional Read: How to Invest in an IPO Online
IPO Timeline
Check out the tentative schedule and launch timeline of the HOAC Foods India Limited IPO, as announced by the company.
Open Date
| Thursday, May 16, 2024
|
Close Date
| Tuesday, May 21, 2024
|
Cut-off Time for UPI Mandate Confirmation
| 5 PM on May 21, 2024
|
Basis of Allotment Date
| Wednesday, May 22, 2024
|
Initiation of Refunds Date
| Thursday, May 23, 2024
|
Credit of Shares to Accounts
| Thursday, May 23, 2024
|
Listing Date
| Friday, May 24, 2024
|
IPO Lot Sizes
As a retail investor, you will need to put in a bid for at least one lot, i.e. 3,000 shares worth Rs. 1,44,000 in HOAC Foods India Limited IPO. Here are the details of minimum and maximum lot sizes and investment amounts for different investors.
Application
| Lots
| Shares
| Amount
|
Retail (Minimum)
| 1
| 3,000
| Rs. 1,44,000
|
Retail (Maximum)
| 1
| 3,000
| Rs. 1,44,000
|
HNI (Minimum)
| 2
| 6,000
| Rs. 2,88,000
|
Company Financials
The table below outlines the financial details about HOAC Foods India Limited for the past 3 years that you must know before investing in its IPO.
Particulars
| For the Financial Year Ending (In Rs. Lakhs*)
|
| March 31, 2023
| March 31, 2022
| March 31, 2021
|
Total Assets
| 491.72
| 359.71
| 208.33
|
Total Liabilities
| 334.86
| 261.64
| 176.07
|
Total Expenses
| 1,137.54
| 1,056.27
| 728.55
|
Total Revenue
| 1,219.05
| 1,094.03
| 746.28
|
Profit/Loss After Tax
| 58.79
| 27.33
| 12.85
|
EBITDA
| 114.39
| 59.71
| 35.63
|
EPS (Basic and Diluted)
| 3.19
| 2.31
| 1.51
|
*Except EPS
Additional Read: Difference Between NFO and IPO
Strengths of the Company
Here are some of the key strengths of HOAC Foods India Limited that set it apart from its competitors.
- Its unique business model has enabled the company to establish a loyal customer base in and around Delhi-NCR. This model has also allowed it to effectively manage the costs associated with business operations, from sourcing raw materials from vendors and farmers to delivering products to customers.
- The company’s understanding of consumer tastes complements its product development, resulting in a diverse portfolio including spices like chai masala, mustard oil, pulses and more. It offers a total of 153 product SKUs, including ground and blended spices, and wheat flour.
- The company’s strength also lies in making products accessible to customers through omnichannel distribution networks, covering both online and offline touchpoints.
Risks Involved
In addition to strengths, there are also certain risks associated with the business of HOAC Foods India Limited. Interested investors should be mindful of both aspects. Here are some of the risk factors:
- The company must secure and maintain necessary permits, licences and approvals for its operations and manufacturing facility. Any delay or failure in obtaining or renewing these could adversely impact its results.
- Operating in highly competitive markets, the company faces competition in terms of larger scale and resources. As a result, there is a risk of losing market share, experiencing reduced net revenues and decreased profitability.
Summing Up
Here is all you need to know about the upcoming HOAC Foods India Limited IPO. With this information, you can plan an investment strategy by May 16 that aligns with your goals. Till then, you can consider opening a demat account with us if you do not have one already. Moreover, stay tuned to our website for regular updates on upcoming IPOs. For regular updates on upcoming IPOs, download the Bajaj Broking app now.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
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Source: Tata Consumer Products Press Release on BSE