SME Action: HOAC Foods India IPO gets record subscription at 1,834 times, Rulka Electricals 629x

HOAC Foods India IPO subscription

The initial share sale of HOAC Foods India has received a record subscription amongst the IPOs till now, though the issue was small in size. Investors have bought 211.82 crore equity shares, which was 1,834.01 times the offer size of 11.55 lakh equity shares, on May 21, the final day of bidding.

Retail investors took the lead amongst the participants, picking 2,556.5 times the allotted quota, while institutional and non-institutional investors bought 1,432.77 times the portion set aside for them.

The subscription figures by HOAC were far higher than Kay Cee Energy & Infra, and Maxposure IPOs received at 959 times and 905 times, respectively in January this year.

The company, which manufactures flour and spices, launched its Rs 5.54-crore fixed price public issue on May 16, with an offer price of Rs 48 per share. The issue comprised of solely a fresh issue of 11.55 lakh equity shares.

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Established in 2018, HOAC Foods India sells flour, herbs & spices, unpolished pulses, grains, and yellow mustard oil in and around Delhi-NCR through exclusive brand outlets, under the brand name HARIOM.

It will finalise the basis of allotment of IPO shares by May 22 and the equity shares will be credited to demat accounts of successful investors by May 23. The trading in its equity shares will commence on the NSE Emerge with effect from May 24.

The grey market data, an unofficial market for trading in IPO shares till the listing, showed that HOAC shares traded at around 200-300 percent premium over the issue prices and Rulka Electricals shares were available at more than 100 percent premium over the offer price, the market observers said.

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The Rulka Electricals IPO also received robust response from investors who have bid 629.42 times the issue size. The participants picked 50.6 crore equity shares against the offer size of 8.04 lakh equity shares.

This book built issue also closed for subscription on Tuesday.

Non-institutional investors (high networth individuals) were at the forefront, buying 1,352 times the allotted quota, while investors purchased 659 times the reserved portion in the retail category. Qualified institutional buyers also showed interest in the issue, bidding 203.6 times the part set aside for them.

The electrical and Fire-Fighting solutions company aimed to raise Rs 26.40 crore through its maiden public issue at the upper end of price band of Rs 223-235 per share. The IPO is a mix of fresh issue of 8.42 lakh equity shares worth Rs 19.8 crore by the company, and an offer-for-sale of 2.8 lakh equity shares worth Rs 6.6 crore by the public shareholder Abhay Kantilal Shah HUF.

The Mumbai-based company already raised Rs 7.5 crore from seven anchor investors on May 15, including BOFA Securities Europe SA, Negen Undiscovered Value Fund, North Star Opportunities Fund and Saint Capital Fund, at the upper price band.

The fresh issue money will be used mainly for working capital requirement, and general corporate purpose.

Rulka Electricals offers services like electrical solutions, electrical panels, solar EPC contracts, turnkey electrical warehousing projects, electric commercial industrial services, maintenance services, electrical contracting and data & voice cabling installation across the industrial, commercial, retail and theatre sectors.