In a remarkable development within the Indian financial markets, NSE SME Stock Hits Upper Circuit After Successful completion of its first-ever Qualified Institutional Placement (QIP). HOAC Foods India Limited made headlines as its shares were locked in a 2% upper circuit on Friday’s trading session following the closure of a ₹100 crore QIP, drawing widespread investor attention and market buzz.
The share price of HOAC Foods India opened at ₹266.95 on the NSE SME platform today, continuing its strong upward trajectory. Notably, NSE SME Stock Hits Upper Circuit After Successful QIP closure signifies the growing confidence of investors in emerging SME counters and the resilience of niche sector companies amid broader market fluctuations.
Strong Investor Response Drives Upper Circuit
The QIP by HOAC Foods India, which commenced on June 30, 2025, and concluded on July 3, 2025, witnessed overwhelming demand from institutional investors. The company issued 4,97,250 equity shares at an issue price of ₹201 per share, marking a discount of approximately 5% from the floor price of ₹210.64 set in accordance with SEBI regulations. Despite the discount, the strong response from institutional buyers ensured full subscription of the offering.
Reflecting on this development, market experts noted that NSE SME Stock Hits Upper Circuit After Successful QIP closure is a testament to the investor trust placed in HOAC Foods India’s business strategy and future growth outlook.
Technical Expert’s Take on Price Action
Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, commented on the stock’s price movement, stating, “This is a low-volume counter that has consistently hit upper circuits throughout the week, recording a weekly gain of around 18%. Due to the sharp and one-sided movement with low volumes, a meaningful technical view on such counters is not feasible.”
The consistent upward trajectory further reaffirms how NSE SME Stock Hits Upper Circuit After Successful capital raise events can trigger investor interest in smaller, niche companies listed on the SME segment.
Key Investors Participating in the QIP
One of the highlights of this QIP was the quality and diversity of investors it attracted. The participants included well-known institutional investors such as:
- Nine Alps Opportunity Fund
- Holani Venture Capital Fund
- Mili Capital Investment Trust
- Paradise Moon Investment Fund I
- Moneywise Financialservices Private Limited
- Swyom India Alpha Fund
- Chanakya Opportunities Fund 1
- Beacon Stone Capital VCC – Beacon Stone I
- Saint Capital Fund
The involvement of these reputed institutional investors played a crucial role in ensuring that NSE SME Stock Hits Upper Circuit After Successful completion of the QIP, reaffirming the market’s faith in HOAC Foods India’s growth prospects.
Company’s Reaction to the QIP Outcome
Commenting on this milestone, Rambabu Thakur, Managing Director of HOAC Foods India, said, “The overwhelming response to our QIP from investors is a testament to their trust in HOAC Foods India Limited’s vision and strategy. The successful completion of this QIP marks a pivotal moment in our journey. The raised capital will fortify our working capital requirements and ensure we maintain robust growth momentum.”
This clear strategic direction is one of the key reasons why NSE SME Stock Hits Upper Circuit After Successful capital raise, especially when institutional investors express confidence in a company’s fundamentals.
About HOAC Foods India Limited
HOAC Foods India Limited specializes in producing natural food products such as flour (chakki atta), unpolished pulses, grains, herbs, spices, and yellow mustard oil under its popular ‘HARIOM’ brand. The company takes pride in sourcing high-quality raw materials from across the country and processing them without artificial preservatives or chemicals. This ensures a pure, organic product line that retains its natural benefits.
Operating from its manufacturing site located in Village Bhondsi, Gurugram, the company has built a unique business model where it manufactures and packages products in quantities aligned with customer needs and shelf-life, reducing waste and offering fresh, premium-quality products to consumers.
This differentiated approach has enabled HOAC Foods India to carve a niche for itself in the FMCG sector, which further justifies how NSE SME Stock Hits Upper Circuit After Successful capital raising initiatives reflect market confidence in the business model.
Why QIPs Are Gaining Traction in SME Segment
Qualified Institutional Placements have traditionally been a tool for large-cap and mid-cap companies to raise quick capital without the need for elaborate IPO processes. However, with increasing awareness and maturity in the SME market space, more companies are opting for QIPs to attract institutional capital for business expansion, working capital requirements, or new product development.
The case where NSE SME Stock Hits Upper Circuit After Successful QIP closure shows that investors are gradually warming up to SME counters that have a sound business strategy and clear growth potential.
Impact on Stock Performance
Following the QIP’s success, HOAC Foods India shares remained locked in a 2% upper circuit at ₹266.95 per share in today’s session. With a weekly gain of approximately 18%, market participants are closely monitoring this counter. The scenario where NSE SME Stock Hits Upper Circuit After Successful QIP signals growing investor interest in SME stocks, especially in the FMCG and organic food production sectors.
Given the stock’s limited free float and low trading volumes, sharp price movements have been a regular occurrence. As Rajesh Bhosale pointed out, these one-sided movements make it difficult to offer a meaningful technical analysis for now. Still, the fact that NSE SME Stock Hits Upper Circuit After Successful capital raise cannot be overlooked as a major positive indicator.
Outlook and Future Prospects
With the ₹100 crore capital infusion, HOAC Foods India aims to bolster its working capital, enhance production capacity, and possibly venture into newer product categories. The company’s long-term vision involves expanding its organic and natural food product line across domestic and international markets.
Market analysts believe that if HOAC Foods India strategically deploys the freshly raised capital, it could sustain its growth momentum, thereby potentially repeating instances where NSE SME Stock Hits Upper Circuit After Successful operational or financial milestones.
Moreover, with robust demand for organic and preservative-free food products in India and abroad, the company’s product portfolio is well-positioned to capitalize on shifting consumer preferences. This forms a strong case for institutional investors who have already expressed their confidence by subscribing to the recent QIP.
Conclusion
In summary, the story where NSE SME Stock Hits Upper Circuit After Successful ₹100 crore QIP is a noteworthy example of how SME companies with a clear business model and operational integrity can attract substantial institutional interest. HOAC Foods India has set a precedent for other SME stocks looking to tap institutional capital for scaling up operations.
As the SME segment continues to mature and institutional investors seek alpha in emerging companies, the possibility of witnessing more events where NSE SME Stock Hits Upper Circuit After Successful financial moves remain high. The HOAC Foods India QIP success story could very well be the catalyst for a broader shift in SME stock perception in the Indian equity market.