HOAC Foods India Limited IPO (Hariom Atta & Spices IPO) : Key Info.

HOAC Foods India Limited IPO is set to launch on 16 May, 2024. The company was incorporated in 2018. It is engaged in the manufacturing of flour (chakki atta), herbs & spices, unpolished pulses, grains, and yellow mustard oil in its product range and markets & sell it in and around Delhi-NCR under the brand name “HARIOM” through its Exclusive Brand Outlets. The company handpicks raw materials from various parts of the country and processes 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.

The company’s model has helped penetrate the niche segment of its market and establish a customer base in and around Delhi-NCR. Since inception, its objective has been to produce high-quality natural spices and food products without artificial preservatives or synthetic substances. To achieve this, it has developed a business model in which it manufactures and packages products in quantities that can sustain a customer until the shelf life of the product, reducing waste and providing a diverse range of products with freshness and goodness. 

Other Information

Presently most of its sales are derived from Delhi-NCR region. Company’s extensive franchisee network consists of 4 company-owned outlets and 6 franchisee-owned outlets. It also relies on D2C platform through its in-house built Mobile Application and Company website which is available for sale of products. It has implemented a franchisee management system that helps it coordinate with franchise owners, store managers and provides the visibility on inventory levels and franchisee and store sales, enabling it to optimise distribution network and reduce the time between the food product manufactured in its facility to consumer’s kitchen which is around within same day to maximum 1 day. As of December 31, 2023, it had 50 employees on its payroll. It also employs contract labour as and when needed.

HOAC Foods India Limited : IPO DETAILS

HOAC Foods India Limited IPO is set to launch on 16 May, 2024. The subscription timeline extends till 21 May, 2024. The size for the IPO is Rs. 5.54 Crore. The issue is entirely a fresh issue of 11.55 lakh shares aggregating to Rs. 19.80 Crore. The lot size is 3000 shares and the price is Rs. 48 per share. The company is going to get listed at NSE SME Board. The face value per share is Rs.10 and this is a Fixed Price Issue. The registrar for the company is Kfin Technologies Limited. 

Tabular Description of HOAC Foods India Limited IPO

HOAC Foods India Limited IPO: IMPORTANT DATES

HOAC Foods India Limited IPO begins for subscription from 16 May, 2024. The IPO subscription would continue till 21 May, 2024. The allotment status for the shareholders who applied would come on 22 May, 2024. The refunds for the ones who did not get allotment would be initiated on 23 May, 2024. The DEMAT accounts of shareholders would be credited on 23 May, 2024. The listing of the company would be completed on 24 May, 2024.

HOAC Foods India Limited IPO: Lead Managers

The lead managers are :

• GYR Capital Advisors Private Limited

The minimum and maximum lot size for retail investors is 3000 shares, amounting to Rs. 144000. The minimum lot size for HNI is 6000 shares, amounting to Rs. 288000.  

OBJECTIVES FOR THE IPO

• Funding the working capital requirements of the company
• General Corporate Purposes

COMPANY FINANCIALS

HOAC Foods India Limited  had an asset base of Rs. 208.33 Lakhs in 2021 which increased to Rs. 491.72 Lakhs in 2023.The asset base of the firm jumped to Rs. 766.40 Lakhs as on December 2023. The revenue for the company was Rs. 746.28 Lakhs in 2021, which increased to Rs. 1219.05 Lakhs in 2023. The revenue for the period ending December 2023 was Rs. 1154.71 Lakhs. The profit of the company increased from Rs. 12.85 Lakhs in 2021 to Rs. 58.79 Lakhs in 2023. The profit generated for the period ending December 2023 was Rs. 74.50 Lakhs.

PROS

• The company handpicks raw materials from various parts of the country and processes 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.
• It has developed a business model in which it manufactures and packages products in quantities that can sustain a customer until the shelf life of the product, reducing waste and providing a diverse range of products with freshness and goodness. 
• Company’s extensive franchisee network comprised of 4 company-owned outlets and 6 franchisee-owned outlets

HOAC Foods India Limited IPO Application Process with Zerodha

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

1. Logging into Zerodha console through its website or KITE platform. Clicking the IPO section present in the ORDER tab.
2. Click the HOAC Foods India Limited IPO button and press the BID button.
3. Entering the details asked for like UPI ID, Quantity and price.
4. Submit the application form for the IPO.
5. Visiting the application of UPI for approving the transaction.

Now, applying for an IPO online is possible with most of the Discount and online brokers.