HOAC Foods India Limited, known as ‘Hariom Atta & Species’ is coming up with an IPO which consists of a fresh issue of 11,55,000 shares of Rs.10 each, worth INR 5.54 crores. The company aims to fund the working capital requirements and meet general corporate purposes.
HOAC Foods India Ltd IPO – Important Dates
| HOAC Foods India Limited IPO Date | May 16, 2024 to May 21, 2024 |
| HOAC Foods India Limited IPO Listing Date | May 24, 2024 |
| HOAC Foods India Limited IPO Price | INR 48 per share |
| HOAC Foods India Limited IPO Lot Size | 3000 shares |
| HOAC Foods India Limited IPO Total Issue Size | INR 5.54 crores |
| HOAC Foods India Limited IPO Basis of Allotment | May 22, 2024 |
| HOAC Foods India Limited IPO Initiation of Refunds | May 23, 2024 |
| HOAC Foods India Limited IPO Credit of Shares to Demat | May 23, 2024 |
| HOAC Foods India Limited IPO Issue Type | Fixed Price Issue IPO |
| HOAC Foods India Limited IPO Listing At | NSE SME |
HOAC Foods India IPO – Company Profile
HOAC Foods India Limited specializes in manufacturing organic spices, flour, pulses, grains, and mustard oil under the “HARIOM”—handpicked raw materials processed without artificial preservatives, offering freshness and quality to Delhi-NCR markets.
They cater to diverse tastes with MP Sharbati Atta, Multi-grain Atta, and other healthy flours. Their extensive product portfolio of 153 SKUs, spanning spices, oil, pulses, and more, solidifies their position in the regional food market.
Operating from Bhondsi Village, Gurugram, HOAC Foods India Limited ensures efficient production of spices, flour, and other products. Focusing on natural processes, they maintain product quality and nutritional value, selling exclusively through their “HARIOM” brand outlets.
HOAC Foods IPO Review
HOAC Foods India Limited Technologies’ financial analysis reveals a mixed performance. Revenue grows steadily, surpassing benchmarks. Equity rises, reducing debt reliance. Profits soar, EPS climbs, but RoNW dips–total assets surge, strengthening liquidity.
1. Revenue Trend: The revenue increased from ₹1,087.27 lakhs in March 2022 to ₹1,208.56 lakhs in March 2023. The revenue for the current year’s 9-month period ending December 2023 is INR 1,148.59 lakhs, crossing last year’s benchmark.
2. Equity and Liabilities: Both equities and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
3. Profitability: The profit after tax (PAT) has significantly increased from ₹27.33 lakhs in March 2022 to ₹74.50 lakhs by December 2023. This improvement in profitability could be a source of confidence for investors.
4. Earnings per Share (EPS): The diluted EPS has risen from ₹2.31 in March 2022 to ₹2.84 by December 2023, reflecting higher earnings per share for investors.
5. Return on Net Worth (RoNW): The RoNW has grown from 27.87% to 23.60%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
6. Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
HOAC Foods India Limited IPO Fundamental Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in lakhs) | 1,087.27 | 1,208.56 | 1,148.59 |
| Equity (₹ in lakhs) | 98.07 | 156.86 | 315.73 |
| Expenses (₹ in lakhs) | 1,056.27 | 1,137.54 | 1,051.72 |
| Profit and Loss After Tax (₹ in lakhs) | 27.33 | 58.79 | 74.50 |
| Diluted EPS only (₹) | 2.31 | 3.19 | 2.84 |
| Return on Net Worth (%) | 27.87 | 37.48 | 23.60 |
| NAV per Equity Share (₹) | 45.19 | 72.29 | 11.74 |
| Total Assets (in lakhs) | 359.71 | 491.72 | 766.40 |
| Total Liabilities (in lakhs) | 261.64 | 334.86 | 450.67 |
| Debt-Equity Ratio | 0.54 | 0.32 | 0.27 |
| Current Ratio | 1.36 | 1.40 | 1.75 |
HOAC Foods India Ltd IPO Peer Comparison
HOAC Foods India Limited shows steady growth in revenue and profits with a moderate RoNW. Contil India Limited demonstrates high revenue and RoNW but substantial debt. Jetmall Spices and Masala Limited display lower revenue and profitability.
| Company | CMP (₹) | Face Value (₹) | P/E (₹) | EPS (Basic & Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| HOAC Foods India Limited | 48 | 10 | 16.90 | 2.84 | 0.37 | 1,219.05 |
| Contil India Limited | 155 | 10 | 77.11 | 2.01 | 8.46 | 920.69 |
| Jetmall Spices and Masala Limited | 16 | 10 | 32.65 | 0.49 | 0.03 | 363.68 |
HOAC Foods India IPO Objective
The main objective of HOAC Foods India Limited is to fund the company’s working capital requirements.
- Funding of working capital requirements: The company intends to utilize INR 3.5 crores of Net Proceeds in Fiscal 2025 for working capital, with the remainder sourced from borrowings and internal accruals/net worth. They specialize in organic spices and flour, emphasizing freshness and quality.
- General corporate purposes: The company will allocate funds to general corporate goals, including strategic initiatives, partnerships, brand building, promotional activities, and ongoing corporate exigencies, ensuring holistic growth and market presence.
HOAC Foods IPO Risks And Challenges
HOAC Foods India Limited’s risk includes reliance on third-party suppliers for key products, which exposes it to quality, delay, and supply risks. Intense competition from both organized and unorganized players also impacts profitability.
- They comply with various laws and regulations, obtaining necessary licenses and permits. Stringent regulations may pose compliance challenges and increased costs, impacting their operations and potentially attracting penalties.
- The company relies on third-party suppliers for products like Pulses, Rice, Spices, Grains, and Sugar, exposing it to risks such as quality decline, delays, and supply interruptions, potentially impacting operations and profitability.
- In a highly fragmented industry, competition arises from organized players like Gandhi Spices, MDH Masala, and Everest Masala and unorganized suppliers. Intense competition poses challenges such as pricing pressure and reduced profitability.
HOAC Foods India IPO – Industry & Market Potential
The FMCG market reached US$167 billion in 2023 and is expected to grow at a 27.9% CAGR through 2021-27, reaching nearly US$615.87 billion. The Indian food processing market was US$307.2 billion in 2022 and is projected to reach US$547.3 billion by 2028.
India, the largest spice producer, exporter, and consumer, witnessed rapid production growth, with 2021-22 reaching 10.88 million tonnes. Chili led exports, followed by spice oils, mint, cumin, and turmeric, with essential spices dominating production.
India’s wheat flour industry, worth US$241.0 billion in 2022, may reach Rs 25,000 Cr by 2022-23. Despite urban concentration, growth is expected, with expansion into rural markets anticipated by 2024-25.
HOAC Foods India Limited IPO – Type of Offer
HOAC Foods India Limited consists of a fresh issue of 11,55,000 shares of Rs.10 each, worth INR 5.54 crores. The company aims to fund the working capital requirements and meet general corporate purposes.
HOAC Foods India Ltd IPO Offer Size
The offer size of HOAC Foods India Limited is INR 5.54 crores, consisting of a fresh issue of 11,55,000 shares of Rs.10 each. The company seeks funds for working capital requirements and general corporate purposes.
HOAC Foods India Limited Allotment Structure
HOAC Foods India Limited’s IPO allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 93,000 shares for Market Makers.
- Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.
- Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.
- Market Makers Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 93,000 shares for this purpose.
How to apply for a HOAC Foods India Limited IPO?
To apply for the HOAC Foods India Limited IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the HOAC Foods India Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the HOAC Foods India Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check HOAC Foods India Limited’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the HOAC Foods India Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the HOAC Foods India Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the HOAC Foods India Limited IPO:
● Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the HOAC Foods India Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Enterprise (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
HOAC Foods India Limited Ltd IPO Offer Registrar
The registrar for the HOAC Foods India Limited IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
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 Fax: +91 40 2343 1551
Website: www.kfintech.com;
Email: [email protected]
HOAC Foods India Limited Limited IPO – FAQs
The allotment date of the HOAC Foods India Limited Limited IPO is May 22, 2024.
The price band of the issue is INR 48 per share.
The offer size of HOAC Foods India Limited is INR 5.54 crores, consisting of a fresh issue of 11,55,000 shares of Rs.10 each. The company seeks funds for working capital requirements and general corporate purposes.
The listing date of HOAC Foods IPO is May 24, 2024.
