NSE SME HOAC Foods India's IPO ends with subscription of 1834 times

The offer received bids for 211.82 crore shares as against 11.55 lakh shares on offer.

The initial public offer (IPO) of HOAC Foods India received bids for 2,11,82,82,000 shares as against 11,55,000 shares on offer. The issue was subscribed 1834.01 times.

The Retail Individual Investors (RIIs) category put in bids for 1,35,74,79,000 shares. The Non Institutional Investors (NIIs) category put in bids for 74,05,08,000 shares. The Qualified Institutional Buyers (QIBs) category put in bids for 2,02,95,000 shares.

The issue opened for bidding on 16 May 2024 and it closed on 21 May 2024. The price of the IPO was fixed at Rs 48 per share.

The IPO comprises fresh issue of 11,55,000 shares. The promoter and promoter shareholding will dilute to 69.95% from 99.99% pre-IPO.

About 93,000 equity shares will be reserved for subscription by market maker to the issue. The net issue comprises of 10,62,000 equity shares. The issue and the net issue will constitute 30.05% and 27.63% respectively of the post offer paid up equity share capital of the company.

The company intends to utilize the net proceeds for funding the working capital requirements of the company and for general corporate purposes.

HOAC Foods India are 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 companys extensive franchisee network comprised of 4 company-owned outlets and 6 franchisee-owned outlets, totalling 10 exclusive brand outlets which sells and markets only its brands products, complemented by its sales and marketing team comprising of 12 employees, as of 31 December 2023.

The company also sell tea masala and other grocery products like mustard oil, sambhar masala, channa masala, chaat masala and various other grains and rice exclusively through its brand retail outlets and D2C mobile application and website. The company has a manufacturing facility in Gurugram. As of 31 December 2023, the company employs 50 people in various departments.

The company recorded revenue from operations of Rs 11.48 crore and net profit of Rs 0.74 crore for the period as on 31 December 2023.

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