Heranba Industries' Rs 625 crore initial public offering (IPO) will open for subscription between February 23 and 25. The Gujarat-based crop protection chemicals manufacturer has fixed a price band of Rs 626-627 per share for the IPO. This is going to be the eighth IPO this year after Indian Railway Finance Corporation, RailTel Corporation of India, Indigo Paints, Home First Finance Company, Nureca, Stove Kraft and Brookfield India REIT.
Ahead of the IPO, Heranba Industries shares were trading at Rs 732 in the grey market, quoting a premium of Rs 105 or 24 per cent over the issue price of Rs 627 apiece.
Here are 10 key things you need to know about Heranba Industries' IPO:
Open and close date
The IPO of Heranba Industries will open on February 23 and the issue will close on February 25. The subscription for anchor investors opened on February 22.
The Gujarat-based agrochemical company plans to raise Rs 625 crore through public listing of shares. The issue comprises of a fresh issue of Rs 60 crore and an offer for sale (OFS) of up to 90,15,000 equity shares by existing share holders.
The price band for Heranba Industries' IPO has been fixed at Rs 626-627 per share.
Investors can bid for a minimum of 23 equity shares and in multiples of 23 shares thereafter. A lot comprises of 23 equity shares and will cost Rs 14,421. Retail investors can apply a maximum of 13 lots.
Objective of issue
The company intends to use net proceeds to meet working capital requirements and general corporate purposes.
Registrar and Book Running Lead Managers to IPO
Emkay Global Financial Services Ltd and Batlivala and Karani Securities India are the book running lead managers to the IPO, while Bigshare Services Pvt Ltd is the registrar.
Listing of shares
Shares of Heranba Industries will be listed on NSE and BSE. The company is expected to make its stock market debut on March 5, 2020. The basis of share allotment is expected to be finalised on March 2 and shares are likely to be credited to Demat account on March 4.
The promoters and promoter group own 98.85 per cent stake in the company, while the remaining 1.15 per cent is owned by public shareholders. Promoters of the company include Sadashiv K Shetty, Raghuram K Shetty, Babu K Shetty and Vittala K Bhandary. After the IPO, the promoters and promoter group shareholding will shrink to 74.15 per cent, while public shareholding will rise to 25.85 per cent.
For FY20, Heranba Industries reported a 29.6 per cent rise in profit at Rs 97.75 crore as compared to the last fiscal on the back of lower tax cost and higher other income. Revenue from operations, however, dropped 5.3 per cent YoY to Rs 951.37 crore in FY20.
Gujarat-based Heranba Industries is one of the leading manufacturers of synthetic pyrethroids in India, having a market share of 19.5 per cent of the total Indian pyrethroids production values. It manufactures intermediates, technicals and formulations and also exports to more than 60 countries. The agrochemical company has three manufacturing plants and has over 9,400 dealers.