Heranba Industries IPO listing: Hot debut, issue lists at over 40% premium I Retail investors are delighted

Heranba Industries IPO listing: The company listed at Rs 900, which is over 40% premium to the issue price. The stock made a high of Rs 945 and the current market price is Rs 916, up Rs 290 or 46.2%. Heranba IPO has been subscribed 83.29 times. Heranba Industries IPO was 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. Retail Investors and many investors are expecting strong listings for Heranba Industries.
 
Markets being at all time highs; IPO market is seeing strong traction. Retail investors are excited about the strong listing gains from Heranba Industries. Retail Investors have shown great interest by subscribing heavily to Heranba Industries IPO. Nureca and RailTel IPO applicants are glad to receive the allotment as both the companies have rewarded the retail investors handsomely.

Heranba Industries is a crop protection chemical manufacturer, exporter and marketing company based out of Vapi, Gujarat, with Corporate and Administration Offices in Mumbai. It manufactures Intermediates, Technicals and Formulations & 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.

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The Issue Size of Heranba Industries is 625.2 cr. It is a Fresh Issue of 9.6 lk shares. The Offer for Sale is of 90.2 lk shares. Today is the last day to Subscribe for the issue. The face value is Rs 10 and the Price Band is Rs 626 – Rs 627 while the Minimum Lot size is 23. Heranba Industries proposes to utilize the Net Proceeds towards funding the working capital requirements and for general corporate purposes. Heranba Industries will not receive any proceeds from the Offer for Sale. Book Running Lead Managers are Emkay Global Financial Services and Batlivala & Karani Securities India. Registrar to the Offer is Bigshare Services.

Heranba Industries business verticals include:

(a)    Domestic Institutional sales of Technicals: manufacturing and selling of Technicals in bulk to domestic companies
(b)   Technicals Exports: Exports of Technicals in bulk to customers outside India
(c)    Branded Formulations: Manufacturing and selling of Formulations under its own brands through its own distribution network in India
(d)   Formulations Exports: Export 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 to pest management companies

Heranba Industries Valuation:

At the upper end of the IPO price band, it is offered at 22.67x its TTM EPS earnings, with a market cap of Rs 2509 cr. Considering the company’s dominant position in the pyrethroids market, strong balance sheet, high RoNW of 30.47% as per FY20 financial statements, strong management and reasonable valuations.