HOAC Foods India IPO: Check Issue Date, Price, Lot Size & Company Financial

IPO Details

Bidding Dates

15 May '24 - 20 May '24

Minimum Investment

₹1,44,000/ 1 Lot (3000 shares)

Price Range

₹48

Maximum Investment

₹1,44,000/ 1 Lot (3000 shares)

Retail Discount

To be announced

Issue Size

₹5.54 Cr

Investor category and sub category

Retail Individual Investors (RII) | Non-institutional Investors (NII) | Qualified Institutional Buyers (QIB) | Eligible employees |

IPO Dates

Important dates with respect to IPO allotment and listing

Opening Date

May 15, 2024

Closing Date

May 20, 2024

Basis of Allotment

May 21, 2024

Initiation of Refunds

May 22, 2024

Credit of Shares to Demat

May 22, 2024

Listing Date

May 23, 2024

Cut-off time for UPI mandate confirmation

May 20, 2024

About HOAC Foods India Limited

HOAC Foods India Limited, trading under the brand "HARIOM," has made significant strides in the food industry since its establishment in 2018 by Mr. Rambabu Thakur and Mrs. Gaytri Thakur. Their vision of delivering high-quality, natural food products without artificial preservatives has shaped the company's identity.

Operating from a state-of-the-art manufacturing facility in Gurugram, HOAC Foods produces a wide range of items, including flour, spices, pulses, grains, and mustard oil. What sets them apart is their meticulous approach to sourcing raw materials from various regions of India and processing them without the use of chemicals, ensuring freshness and nutritional value.

HOAC Foods has developed a strong presence in the Delhi-NCR region through a network of Exclusive Brand Outlets and a user-friendly mobile application. Their focus on customer satisfaction, cost-effectiveness, and efficient distribution has contributed to their success in the B2C segment.

With a diverse product portfolio, adherence to quality standards, and a commitment to sustainability, HOAC Foods continues to be a trusted name in the Indian food market, offering consumers wholesome and natural food choices under the brand name "HARIOM."

Industry Outlook:

The FMCG industry in India, with a market size of US$ 167 billion as of 2023, is expected to grow at a CAGR of 27.9% through 2021-27.
India's dominance in the global spice production and export market, coupled with the rapid expansion of the Indian flour industry, offers a favourable landscape for HOAC Foods.

HOAC Foods India Limited IPO Details

HOAC Foods India Limited IPO Dates

HOAC Foods India Limited IPO is open from Thursday, May 16, 2024, to Tuesday, May 21, 2024. The IPO will be listed on NSE SME.

HOAC Foods India Limited IPO Price Band

HOAC Foods India Limited is a Fixed Price Issue IPO. The price per share is set at ₹48.

HOAC Foods India Limited IPO Lot Size

The lot size for HOAC Foods India Limited IPO is 3,000 shares with a minimum investment of ₹1,44,000.

HOAC Foods India Limited IPO Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

HOAC Foods India Limited plans to utilise up to ₹ 350 lakhs of Net Proceeds in Fiscal 2025 to meet increased working capital needs due to projected revenue growth, seasonal fluctuations, expanding retail presence, composite supply chain management, and for quality assurance and compliance requirements.
The remaining funds will be utilised for general corporate purposes, such as strategic initiatives, partnerships, acquisitions, brand building, promotional activities, ongoing corporate exigencies, and other approved purposes based on business requirements and Board policies.

Peer Details

The following are the listed peers of HOAC Foods India Limited:

Contil India Limited
Jetmall Spices And Masala Limited

How to Check the Allotment Status of the HOAC Foods India Limited IPO?

Steps to check IPO allotment status on Angel One’s app:

Log in to the Angel One app
Go to the IPO Section and then to IPO Orders.
Select the individual IPO that you had applied for and check the allotment status.
Angel One will notify you of your IPO allotment status via push notification and email.

Contact Details of HOAC Foods India Limited IPO

Registered office: D-498, 1st Floor Palam Extension Sector-7 Dwarka, Raj Nagar - II, South West Delhi, New Delhi, Delhi, India, 110077
Phone: +91 97178 38568
E-mail:info@attahariom.com

IPO Financials

Particulars	As of December 31,2023	Year ending on March 31, 2023	Year ending on March 31, 2022	Year ending on March 31, 2021
Revenue from Operations (in ₹ Lakhs)	1,148.59	1,208.56	1,087.27	742.26
Profit After Tax (PAT) (in ₹ Lakhs)	74.50	58.79	27.33	12.85
Return on Capital Employed (ROCE) (%)	23.43	30.12	21.97	20.16
Net Worth (in ₹ million)	315.73	156.86	98.07	32.26
Return on Net Worth (RoNW) (%)	23.60	37.48	27.87	39.83
EBITDA (in ₹ Lakhs)	131.72	114.39	59.71	35.63

Know before investing

Strengths

HOAC Foods India Limited boasts a unique and sustainable business model focused on direct-to-customer (D2C) sales, ensuring cost control, freshness, and nutritional value preservation of its flour and spices. This model has led to a loyal customer base and improved profit margins.
The company's diversified product portfolio, including spices, chakki atta, pulses, and mustard oil under the brand "HARIOM," positions it well to capture the growing Indian food market. Continuous innovation and expansion into new product categories offer attractive growth opportunities.
With state-of-the-art manufacturing facilities and an FSSAI licence, HOAC Foods India Limited maintains strict quality control throughout its production chain. This ensures standard quality raw materials, efficient processing, and compliance with regulatory standards, contributing to customer trust and loyalty.
The company's focus on efficient supply chain management, leveraging technology and automation, ensures timely delivery, inventory management, and error reduction. This enhances operational efficiency and customer experience, providing a competitive edge in the FMCG sector.

Risks

HOAC Foods India Limited faces risks associated with obtaining, renewing, and maintaining statutory permits, licences, and approvals for its operations. Any delays or failures in obtaining these approvals could result in adverse effects on the company's results of operations and compliance costs.
The company's reliance on third-party suppliers for certain products like pulses, rice, spices, grains, and sugar exposes it to risks such as quality issues, supply chain disruptions, and increased costs. Termination of agreements or business with these suppliers could adversely impact operations and competitiveness.
Operating in highly competitive markets, HOAC Foods India Limited faces threats from both organised players like Gandhi Spices Private Limited, MDH Masala Private Limited, and Everest Masala Private Limited, as well as unorganised local suppliers. Pricing pressures, aggressive marketing strategies, and brand recognition challenges pose risks to market share and profitability.
Pending trademark registrations and potential oppositions from third parties may lead to unauthorised use of trademarks, dilution of goodwill, and limited legal recourse. Failure to protect intellectual property rights could harm the company's brand image and business prospects.