Crop protection chemical manufacturer Heranba Industries on February 22 garnered Rs 187.50 crore from 18 anchor investors ahead of its intial public offering (IPO).
The company in consultation with merchant bankers finalised allocation of 29,90,520 equity shares to anchor investors at Rs 627 per share, the higher end of price band.
The marquee anchor investors included Government Pension Fund Global, Jupiter India, Cohesion MK Best Ideas Sub-Trust, Dovetail India Fund, Societe Generale and Morgan Stanley.
On the domestic front, HDFC Trustee Company, Max Life Insurance Company, IIFL Special Opportunities Fund and Emkay Emerging Stars Fund received shares in the anchor book.
The agrochemical company will open its Rs 625-crore IPO for subscription on February 23 and the same will close on February 25. The price band for the issue has been fixed at Rs 626-627 per share.
The issue comprises a fresh issue of Rs 60 crore and an offer for sale (OFS) of Rs 565.2 crore by promoters. The offer for sale of 90,15,000 equity shares consists of 58,50,000 equity shares by Sadashiv K Shetty, 22,72,038 equity shares by Raghuram K Shetty, 8,12,962 shares by SAMS Industries, 40,000 shares by Babu K Shetty, 40,000 shares by Vittala K Bhandary.
Heranba Industries IPO: 10 things to know before subscribing the issue
The company will utilise net fresh issue proceeds for working capital requirements.
Incorporated in 1992, Heranba Industries is an agrochemical company. It is also one of the leading domestic producers of synthetic pyrethroids. The company is present in the entire product value chain of the agrochemicals industry.
Its business verticals include a) domestic bulk sales of Technicals (31.6 percent of FY20 sales), b) Technicals bulk exports (36.5 percent), c) branded formulations (12.7 percent), d) formulations exports (12.8 percent), and e) insect control chemicals (6.4 percent).
Heranba is one of the leading domestic producers of pyrethroids (around 68 percent of FY20 revenues and 19.5 percent domestic market share in 2019). It has more than 9,400 dealers having access to multiple states in India. It has three manufacturing facilities in and around Vapi with a capacity of 14,024 MTPA.