Heranba-Ipo

Heranba Industries Limited is a crop protection chemical manufacturer, exporter and marketing company based out of Vapi, Gujarat. They manufacture Intermediates, Technicals and Formulations. They are one of the leading domestic producers of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permitherin, lambda cyhalothrin etc. Their Pesticides range includes insecticides, herbicides, fungicides and public health products for pest control.

Domestic Institutional sales of Technicals – Manufacturing and selling of Technicals in bulk to domestic companies;

Technicals Exports – Exports of Technicals in bulk to customers outside India;

Branded Formulations – Manufacturing and selling of Formulations under their own brands through their own distribution network in India;

Formulations Exports – Export of Formulations in bulk and customer specified packaging outside India.

Heranba Industries Ltd. IPO

Wants To Apply Online

 

Issue Details
Objects of the issue ·          To meet business working capital requirements.

·          General corporate purpose

·          To meet public expenses

Issue Size Total issue Size -Rs. 625 Cr.

Offer for Sale – Rs.  9,015,000 Shares

Fresh issue –  Rs. 60 Cr.

Face value  

Rs.10 Per Equity Share

Issue Price Rs. 626 – Rs. 627
Bid Lot 23 shares
Listing at  

BSE, NSE

Issue Opens: 23rd February, 2021 – 25th February, 2021
QIB 50% of Net Issue Offer
Retail 35% of Net Issue Offer
NIB 15% of Net Issue Offer

 

 

Check Heranba Industries Ltd. IPO Allotment Status

Heranba Industries Ltd. IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.

One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-

  1. To Heranba Industries Ltd. IPO IPO Allotment Status
  2. Go to Application Status
  3. Select IPO as Heranba Industries Ltd.
  4. Enter your PAN Number or Application Id or DP Client Id.

 

Heranba Industries Ltd. IPO

Application Form

 

Financial Performance:

Finanical-Heranba-Industries-Ltd.

Shareholding Pattern:

Shareholding Pattern Pre- Issue Post Issue
Promoters & Promoters Group 98.85% 74.15%
Public 1.15% 25.85%

 

Strengths:

  • Presence in a wide range of products across the entire value chain.
  • Strong product portfolio and wide distribution network.
  • Diversified and stable customer base
  • Product registrations in the domestic and international markets enabling global outreach.

Key Highlights:

  • Revenue increased by 26% from Rs 501.64 Crore  in H1FY20 to Rs.618.34 Crore in H1FY21 primarily led by increase in revenue from Domestic Institutional sales of Technicals and Branded Formulations by 31.00% and 71.89% respectively.
  • PAT Margins of the company improved to 10.72% in September quarter of FY21 from 7.51% in FY19.
  • 31% of Revenues of Heranba in FY20 comes from Exports

Risk Factors:

  • There are outstanding legal proceedings involving Company, Promoters and certain Directors which may adversely affect business.
  • In FY20 13.24% of revenue and 13.35% of Raw Materials of the company’s comes from China and any restriction or decline in exports to China could adversely affect company’s business
  • Raw materials constitute a significant percentage (70% as on September, 2020) of Company’s total expenses.

Outlook:

Heranba Industries Limited dominated the India pyrethroids market in 2019, accounting for a share of 19.5% of the total Indian pyrethroids production values. Global agrochemicals market is expected to grow at a CAGR of 4.11% during 2020-2025, reaching a value of US$ 73.39 Billion by 2025. Cypermethrin represented the most popular type in the global Pyrethroids market, accounting for 24.3% of total market in 2019. Cypermethrin used in long-lasting insecticidal nets is widely used to protect people from mosquitoes that carry malaria, dengue, and yellow fever diseases. Rallis India and Sumitomo Chemical India are the peers of the company trading at the price-to-earnings ratios of 24.71 and 47.49 respectively. Hiranba has highest  RoNW of 30.71 among its peers. At the higher end of the price band of Rs. 627, the stock will be available at a PE multiple of 20.64x on FY21E annualised Post issue EPS of Rs. 30.3. We would recommend Listing Gain to this IPO considering  valution and Risk Factors of the company.

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