Heranba Industries Limited IPO Details and Review

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Heranba IPO

Heranba IPO: Key Details

  • Grey Market Premium (GMP) today: ₹180 – 200
  • Raised ₹187.5 crores via anchor investor sale

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

Heranba Industries Limited, incorporated in 1996 , is a crop protection chemical manufacturer, exporter and marketing company based out of Vapi, Gujarat. It manufactures Intermediates, Technicals and Formulations. It is one of the leading domestic producers of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permitherin, lambda cyhalothrinetc.

It has diversified its business from manufacturing and selling of Intermediates to manufacturing, marketing and selling of Technicals and Formulations. Majority of its current Intermediates production is utilized for captive consumption for the manufacturing of Technicals Products. Formulations are produced and packaged in powder and liquid forms and sold to distributors for further sales to farmers.

Key business verticals include:

  • 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 our own brand through distribution network presence in India;
  • Formulations Exports: Export of Formulations in bulk and customer specified packaging outside India; and
  • Public Health: Manufacturing and selling of general insect control chemicals by participating in the public health tenders issued by governmental authorities and selling to pest management companie

Competitive Strengths

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

Company Strategy

  • Enhancing and streamlining production capacities and operations
  • Development of new products at the R&D facility at Unit III (Sarigam)
  • Entering the highly regulated markets of USA and Europe
  • Enhancing Formulations & Technicals business in the international markets
  • Branded Formulations and Public Health products segment

Proceeds from Fresh Issue of Heranba IPO will be used to:

  • To fund working capital requirements
  • To fund expenditures towards general corporate purposes.

The object of the Offer for Sale is to allow the Selling Shareholders to sell an aggregate 90,15,000 of Equity Shares subject to finalization of Basis of Allotment held by them.

Heranba IPO: Financials

201820192020 Mar2020 Sep
Revenue from Ops7,45.10 Cr1,004.44 Cr951.37 Cr618.34
Profit before Tax76.31 Cr122.12 Cr128.84 Cr90.08
Profit after Tax46.88 Cr75.40 Cr97.75 Cr66.31
EPS (Basic)1219.3125.0316.98

Price to Earnings Peer Comparison

Company2020 EPS*P/E^
Heranba25.0325.04
Punjab Chemicals8.7797.23
Bharat Rasayan371.0326.87
Sector P/E48.58
*Basic EPS 2020, ^P/E based on current prices

Heranba IPO Dashboard

Issue Details

TypeValue
Issue Size₹685.24 Cr
Fresh Issue₹60 Cr
Offer for Sale₹625.24 Cr
Face Value₹10/- per Equity Share
IPO Price₹626 – ₹627
Lot Size23 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open23/02/2021
Bid Close25/02/2021
Allotment Finalization02/03/2021
Initiation of Refunds03/03/2021
Credit of Shares04/03/2021
Listing Date05/03/2021

Lot Size and Price

LotsSharesAmount
123₹14,421
13299₹1187,473

Promoter Holding

HoldingPercentage
Pre-Issue98%
Post-Issue74%
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Heranba IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB50%19,95,448* shares
NII15%14,95,791 shares
RII (Retail)35%34,90,178 shares
Total100%69,81,417 shares
*Shares left after anchor investor sale

Heranba IPO: Risks

  • There are outstanding legal proceedings involving the Company, its Promoters and certain Directors which may adversely affect the business, financial condition and results of operations
  • Absence of large customers and dependence on smaller customers increases uncertainty of demand which may have an adverse impact on the business operations and financial performance
  • Any reduction or loss in sales to institutional customers could have an adverse effect on the business
  • Raw materials constitute a significant percentage of the total expenses. Any increase in prices and any decrease in the supply would materially adversely affect the business
  • The Company had negative cash flows in recent fiscals. Sustained negative cash flow could adversely impact the business

For complete internal and external risk factors, you can refer the RHP of the company.

Heranba IPO: Registrar and Lead Managers

Registrar of the Issue

Bigshare Services Private Limited
1st floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makwana Road, Marol, Andheri (East), Mumbai- 400 059, Maharashtra, India

Phone: +91 22 6263 8200
E-mail: [email protected]

Lead Managers of the Issue

Emkay Global Financial Services Limited
Batlivala & Karani Securities India Private Limited

Phone: +91 22 6612 1212 / +91-22-40076000
Email: [email protected] /
[email protected]

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