Heranba Industries IPO Review 2021: The Heranba Ind. Ltd. IPO opens on 23rd Feb and closes on 25th Feb 2021. In this article, we cover the Heranba Industries IPO Review and look into important IPO information and find out the possible prospects of the company. Let’s get started.
Heranba Industries Review – About the Company
Heranba Industries Limited incorporated in 1996 is Gujarat based business engaged in the manufacturing and marketing of a range of crop protection chemicals, public health, and Animal Health solutions.
Heranba Industries Products
. Their product line also includes different types of pesticides, insecticides, fungicides, herbicides, and other pest control products. The company initially began by producing intermediate product cypermethrin acid chloride. Today the company is one of the leading domestic producers of synthetic pyrethroids like cypermethrin, deltamethrin, lambda-cyhalothrin, etc.
Their 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 their own brands through their own distribution network in India;
(d) Formulations Exports: Export of Formulations in bulk and customer-specified packaging outside India; and
(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 Research & Development Unit
The mission of the company is to improve crop productivity and public health. They aim to provide innovative products to farmers that enhance farm efficiency and offer better crop solutions. This is achieved by its research and product development divisions. The company is well equipped with 3 of its own in-house R&D Unit for this purpose. Two of the units are recognized by the Department of Scientific and Industrial Research (DSIR).
They also have a fully equipped in-house laboratory with all the types of laboratory equipment such as HPLC, GC’s, Polarimeters, Particle size Analysers, Spectrophotometers, and other conventional lab equipment. The company’s products; Deltamethrin and Alphacypermethrin are now recommended and included in the WHO/FAO specifications.
Heranba Industries Manufacturing Unit
This company has 3 well-equipped manufacturing units in and around Vapi, Gujarat with an aggregate manufacturing capacity of 14,024 MTPA. Heranba is a manufacturer of Synthetic Pyrethroids and its intermediates in India.
Their products are created through advanced agro-chemical solutions based on specially developed technology. The company also has a well-balanced treatment system for the solid, liquid, and gaseous effluents and emissions generated by them.
Heranba Industries Domestic and Global Markets
It has a wide network of businesses in India. Domestically it caters to customers all over India with its extensive dealership, stockist network, and skilled field sales force. It has established registrations for 18 Technicals for manufacture and sale in India, 93 Technicals & Formulations for manufacture and sale in the export markets, and 167 Formulations registered for manufacturing and sale in India. The company has more than 8,600 dealers having access to 21 depots across 16 states and one union territory in India. Their products are supplied to both Government Tenders and to Pest control companies.
The company also has performed well in the global markets. The company exports its products to more than 60 countries through international distribution partners. The countries are spread across Latin America, CIS, Middle East, Africa, Asia, and southeast Asia. For this purpose, the company also has set up a separate registration department with qualified personnel and data support to meet each country’s regulatory requirements. This has helped its products to obtain registration in many countries.
Heranba Industries IPO Review – Key IPO Information
Sadashiv K. Shetty and Raghuram K. Shetty are the promoters of the company. The company has appointed Emkay Global Financial Services and Batlivala & Karani Securities India are appointed as book-running lead managers.
Important Heranba Industries IPO details
|IPO Size||₹625.24 Cr|
|Fresh Issue||₹60.00 Cr|
|Offer For Sale(OFS)||9,015,000 Eq Shares of ₹10|
|Opening Date||Feb 23, 2021|
|Closing Date||Feb 25, 2021|
|Face Value||₹10 per equity share|
|Price Band||₹626 to ₹627|
|Minimum Lot Size||1 (23 Shares)|
|Maximum Lot Size||13 (299 Shares)|
|Listing Date:||Mar 5, 2021|
Equity shares of the company will be listed on the BSE and the NSE.
Heranba Industries Review – Purpose of the IPO
The IPO proceeds will be utilized for the following purposes:
- To meet business working capital requirements. (Rs 50 crore )
- To meet general corporate purposes.
- To meet public issue expenses.
The IPO opens on 23rd Feb and closes on 25th Feb 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of Heranba Ind. Ltd.
That’s all for this post. Do let us know what you think of Heranba Ind. Ltd. IPO Review. Are you planning to apply for this IPO or not? Comment below. Cheers!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.