Hariom Atta & Spices SME IPO Opens Today: IPO Details and Timeline.

HOAC Foods India Limited, a notable manufacturer of flour, spices, and other food products, is all set to launch its SME Initial Public Offering (IPO) under the brand name "Hariom Atta & Spices." This IPO presents an exciting opportunity for investors looking to tap into the burgeoning Indian food products market. Here’s a detailed overview of the Hariom Atta & Spices IPO, including its key details, timeline, and investment opportunities.

IPO Details

The Hariom Atta & Spices IPO is a fixed price issue, aggregating to Rs 5.54 crores. The IPO is entirely a fresh issue, consisting of 11.55 lakh shares priced at ₹48 per share. Investors can subscribe to the IPO starting May 16, 2024, with the subscription period closing on May 21, 2024. The allotment is expected to be finalized on May 22, 2024, with the shares listed on the NSE SME on May 24, 2024.

Key Information

Issue Type: Fixed Price Issue IPO

Face Value: ₹10 per share

IPO Price: ₹48 per share

Total Issue Size: 1,155,000 shares (₹5.54 crores)

Fresh Issue Size: 1,155,000 shares (₹5.54 crores)

Listing At: NSE SME

Subscription Details

The IPO has a minimum lot size of 3000 shares, requiring a minimum investment of ₹144,000 from retail investors. High Net-worth Individuals (HNIs) need to apply for at least 2 lots, amounting to an investment of ₹288,000.

Lot Size and Investment

Investor Category Minimum LotsShares Investment Amount

Retail 1 3000 ₹144,000

HNI 2 6000 ₹288,000

Timeline of Hariom Atta & Spices IPO

IPO Open Date: Thursday, May 16, 2024

IPO Close Date: Tuesday, May 21, 2024

Basis of Allotment: Wednesday, May 22, 2024

Initiation of Refunds: Thursday, May 23, 2024

Credit of Shares to Demat: Thursday, May 23, 2024

Listing Date: Friday, May 24, 2024

Lead Managers and Registrars

GYR Capital Advisors Private Limited is the book-running lead manager for this IPO, ensuring a smooth process from start to finish. Kfin Technologies Limited has been appointed as the registrar for the issue, while Giriraj Stock Broking will serve as the market maker.

Company Overview

Incorporated in 2018, HOAC Foods India Limited operates under the brand "HARIOM," specializing in flour (chakki atta), herbs & spices, unpolished pulses, grains, and yellow mustard oil. The company’s products are primarily marketed in Delhi-NCR through 10 Exclusive Brand Outlets, four of which are owned by the company and six by franchisees.

Financial Performance

The company has shown a steady growth trajectory, with operational revenues for the nine months ending December 31, 2023, at ₹1,148.59 lakhs. The revenues for the fiscal years 2023, 2022, and 2021 were ₹1,208.56 lakhs, ₹1,087.27 lakhs, and ₹742.26 lakhs, respectively.

Objectives of the Issue

The funds raised through the IPO will be utilized for:

Funding the working capital requirements of the company

General corporate purposes

Conclusion

The Hariom Atta & Spices SME IPO offers a promising investment avenue, especially for those keen on entering the food product market. With a well-established brand, a growing financial footprint, and strategic use of IPO funds, HOAC Foods India Limited is positioned for further expansion and success. Investors looking to diversify their portfolios with a stake in a thriving sector should consider this SME IPO.

Disclaimer- Investment in SME Initial Public Offerings (IPOs) is subject to market risks. Read all documents carefully before investing. Investors are advised to carefully read the offer documents and seek professional financial advice before making any investment decisions.

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