is set to launch its Rs 625-crore initial public offering on February 23 at a price band of Rs 626-627. The offer will close on February 25.
This will be the eighth IPO in 2021 after Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company, Stove Kraft, Brookfield India REIT, Nureca and RailTel Corporation of India.
Emkay Global Financial Services and Batlivala & Karani Securities India are the book-running lead managers to the issue. Equity shares are proposed to be listed on the BSE and NSE.
Here are 10 key things you must know before subscribing the issue:
1) Opening and Closing Date
The public issue of Heranba Industries is set to open for bidding on February 23 and will close on February 25. The issue will open for a day on February 22 only for anchor investors.
2) About Public Issue
The issue comprises of a fresh issue of Rs 60 crore and an offer for sale of 90.15 lakh equity shares by promoters. Heranba will utilise net fresh issue proceeds for working capital requirements.
Sadashiv K Shetty will sell 58,50,000 equity shares, Raghuram K Shetty will offer 22,72,038 shares. Meanwhile, 8,12,962 shares will be offered by Sams Industries, 40,000 shares by Babu K Shetty and 40,000 shares by Vittala K Bhandary.
Investors can bid for a minimum of 23 equity shares and in multiples of 23 shares thereafter.
3) Price Band
The price band for the issue has been fixed at Rs 626-627 per share.
4) Fund Raising
The company aims to raise Rs 624.34 crore - Rs 625.24 crore through the offer at Rs 626-627 per share respectively.
5) Objects of Issue
The company will use net proceeds of the fresh issue working capital requirements; and expenditures towards general corporate purposes.
6) Company Profile
Gujarat-based Heranba Industries is one of the leading domestic producers of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permitherin, lambda cyhalothrin etc. Its pesticides range includes insecticides, herbicides, fungicides and public health products for pest control.
Its business verticals include (a) domestic institutional sales of technicals; (b) technicals exports; (c) branded formulations; (d) formulations exports; and (e) public health.
The company is present in the entire product value chain of the agrochemicals industry i.e. intermediates, technicals and formulations and holds registrations for 18 technicals for manufacture and sale in India, 103 technicals & formulations for manufacture and sale in the export markets and 169 formulations registered for manufacturing and sale in India.
Its manufacturing process mainly includes chemical reactions of ammonolysis, esterification, hydrolysis, condensation, favorski reaction, isomerisation, cyanation, friedel crafts, methoxylation, cyclisation and halogenation. It has inhouse R&D team for product development and improvisation which is well supported by product registration team.
The company exported products to more than 60 countries in Latin America, CIS, Middle East, Africa, Asia and South East Asia in FY20.
Heranba has three manufacturing and packaging facilities in and around the industrial belt of Vapi, Gujarat having 174 reactors with an aggregate manufacturing capacity of 14,024 MTPA.
a) The company has a presence in a wide range of products across the entire value chain of synthetic pyrethroids.
b) The company has obtained product registrations for 371 technicals and formulations in the domestic and international markets enabling global outreach.
c) The company has a strong product portfolio and a wide distribution network.
d) Heranba has a diversified and stable customer base including e Sumitomo Chemical India, Sulphur Mills, Biostadt India, Crystal Crop Protection, NACL, Sharda Cropchem, Meghmani Organics, PI Industries, Krishi Rasayan Group, Agro Life Science Corporation and Shanghai Agricare Chemical, China.
e) The company has experienced promoters and management.
a) The company intends to enhance and streamline production capacities and operations.
b) The company intends to develop new products at the R&D facility at Unit III (Sarigam Unit).
c) The company intends to enter the highly regulated markets of the US and Europe.
d) The company intends to enhance formulations & technicals business in the international markets.
e) Heranba Industries intends to focus on manufacturing and sales of formulations under its own brands in India and the manufacturing and marketing of Public Health products.
Heranba Industries reported a massive 29.6 percent increase in profit at Rs 97.75 crore for the financial year ended FY20 compared to FY19 due to lower tax cost and higher other income. But revenue from operations fell 5.3 percent to Rs 951.37 crore compared to FY19
Profit in FY19 surged 60.9 percent to Rs 75.40 crore compared to FY18, on revenue of Rs 1,004.4 crore that increased 34.8 percent over FY18.
In the six-month period ended September 2020, the profit jumped 24.5 percent to Rs 66.31 crore and revenue rose 23.3 percent to Rs 618.34 crore compared to the corresponding period.
10) Promoters and Management
Promoters of the company include Sadashiv K Shetty, Raghuram K Shetty, Babu K Shetty and Vittala K Bhandary; their total holding equates to 98.85 percent of the total share capital, as of February 10, 2021.
Sadashiv K Shetty is the Promoter, Chairman and Executive Director of the company. He has experience of more than three decades in the agrochemicals industry. He has been previously associated with Sudarshan Chemical, Gharda Chemical, Hoechst Pharmaceuticals and Nirlon.
Raghuram K Shetty is the Promoter and Managing Director of the company. He has experience of more than three decades in the agrochemicals industry.
Sujata S Shetty, Vanita R Shetty and Raunak R Shetty are whole-time directors on the board. Kaushik H Gandhi, Mulky V Shetty, Anil Kumar M Marlecha, Ganesh N Vanmali and Nimesh S Singh are independent directors on the board.
CA Maheshwar V Godbole is the Chief Financial Officer of the company.