Heranba Industries IPO allotment status finalised; Trading in equity shares will commence on March 5

Heranba Industries IPO allotment status finalised and the trading in equity shares of Heranba Industries will commence from March 5. Heranba Industries IPO subscribed 83.29 times. The public issue subscribed 11.84 times in the retail category, 67.45 times in QIB, and 271.15 times in the NII category by Feb 25, 2021 5 pm.
 
Heranba Industries manufactures intermediates, technicals and formulations. The company is one of the leading domestic producers of synthetic pyrethroids such as cypermethrin, alphacypermethrin, deltamethrin, permitherin, lambda cyhalothrin, etc. Its range of pesticides includes insecticides, herbicides, fungicides and public health products for pest control.

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Heranba Industries Key business verticals:

(a) Domestic institutional sales of Technicals: Manufacturing and sales of Technicals in bulk to domestic companies
(b) Technicals exports: Exports of Technicals in bulk
(c) Branded Formulations: Manufacturing and Selling of Formulations under own brands through the company’s distribution network in India
(d) Formulations Exports: Exports of Formulations in bulk and customer-specified packaging outside India
(e) Public Health: Manufacturing and selling of general insect-control chemicals by participating in public health tenders issued by governmental authorities and selling products to pest management companies.

Heranba Industries Major Products - Technical Grade Pesticides/Technicals

1)      Insecticides - Insecticides are substances used to kill insects. They manufacture Cypermethrin, Deltamethrin, Alpha Cypermethrin, Acephate, Lambda Cyhalothrin, Permethrin, Profenophos, Temephos, Theta Cypermethrin, Thiamethoxam and Imidacloprid.
 
2)      Fungicide -  Heranba Industries manufactures the following Fungicides: Tricyclazole and Hexaconazole. 
 
3)      Herbicides - Herbicides also commonly known as weed killers, are substances used to control unwanted plants while leaving the crop relatively unharmed. The company manufactures the following Herbicide: Glyphosate, Metribuzin & Clodinofop.
 
4)      Intermediates – Heranba Industries manufacture the following Intermediates: Cypermethric Acid Chloride (CMAC), High CIS CMA, High CIS CMAC, High Trans CMA, High Trans CMAC, Bromobenzenes and Metaphenoxy Benzaldehyde (MPBD).
 
5)      Formulations - A pesticide formulation is a mixture of chemicals which effectively control a pest. Formulating a pesticide involves processing it to improve its storage, handling, safety, application, or effectiveness. Formulations and branding of formulations are a forward integration to the Technical’s business.
Heranba Industries Investment Rationale:

Heranba Industries Key strengths:

1)       Presence in a wide range of products across the entire value chain of synthetic pyrethroids
2)      Product registrations in domestic and international markets enable global outreach
3)      Strong product portfolio and wide distribution network
4)      Diversified and stable customer base

Heranba Industries Key growth strategies:

1)      Enhancing and streamlining production capacities and operations
2)      Development of new products at the R&D facility at Unit III (Sarigam Unit)
3)      Entering highly-regulated markets of US and Europe
4)      Enhancing Formulations & Technicals business in the international markets

Heranba Industries Key Concerns:

1)      Availability and price of raw materials
2)      Ability to obtain registrations
3)      Seasonal and climatic variations
4)      Growth of new product categories
5)      Agricultural growth in economy