Hariom Atta & Spices, also known as HOAC Foods India, celebrated a successful debut on the National Stock Exchange (NSE) SME platform today. The company’s shares opened at a whopping ₹147 per share, marking a significant jump of 206% compared to the initial public offering (IPO) price of ₹48.
This strong performance indicates high investor interest in HOAC Foods. The IPO, which ran from May 16th to May 21st, 2024, received overwhelming support, with subscriptions exceeding 2,000 times the available shares. This means that for every share offered, investors placed orders for over 2,000 shares!
IPO Details and Strong Investor Response
The IPO, valued at ₹5.54 crore, consisted solely of fresh issue shares, meaning the company raised new capital to fund its operations. Retail individual investors were particularly enthusiastic, subscribing to their allotted quota a remarkable 2,556 times. Non-institutional investors were also keen, subscribing to their portion 1,433 times.
What Does This Mean for HOAC Foods?
The strong listing price is a positive sign for HOAC Foods. It suggests that investors believe in the company’s future potential and are confident in its ability to grow. The significant oversubscription during the IPO further emphasizes this positive outlook.
Use of IPO Funds
HOAC Foods plans to utilize the funds raised through the IPO to meet its working capital requirements and for general corporate purposes. This could include investing in expanding production capacity, improving marketing efforts, or developing new products.
Market Expectations vs. Reality
While the listing price represents a significant increase, it did fall short of some pre-IPO estimates. The grey market, an unofficial trading platform where shares are traded before their official listing, had predicted premiums exceeding 300%. However, the actual listing price still reflects a strong investor appetite for HOAC Foods.
Looking Ahead
HOAC Foods’ successful debut on the NSE SME platform marks a significant milestone for the company. The high investor interest and strong listing price are positive indicators for its future growth. It will be interesting to see how the company performs in the coming months and years, and whether it can live up to the expectations of its investors.