Somerset-backed Hexagon Nutrition to file for ₹600 crore IPO early next week
Founded by Arun and Subash Kelkar in 1993, Hexagon Nutrition sells its products in over 65 countries, currently from its three factories located at Nasik, Chennai, and Thoothukkudi.
Mumbai-based Hexagon Nutrition Ltd (HNL) plans to file draft papers for an initial public offering (IPO) worth ₹500-600 crore next week, two persons familiar with the development said.
The IPO will comprise the sale of both primary and secondary shares. “Equirus Capital Pvt. Ltd and SBI Capital Markets Ltd have been appointed as book running lead managers to the issue," said one of the persons cited above, both of whom spoke on condition of anonymity.
An email sent to the company remained unanswered.
In 2016, Somerset Indus Healthcare Fund-I, along with Mayur Anand Sardesai, an advisor and director at Somerset Health Capital Advisors, had invested ₹25 crore for a 10% stake in the company, which makes fortification, clinical nutrition and therapeutic food. Somerset is an offshore private equity firm focused on making healthcare investments in India, which raised the fund during 2012. The funds were raised to grow its branded consumer business globally.
Founded by Arun and Subash Kelkar in 1993, Hexagon Nutrition sells its products in over 65 countries, currently from its three factories located at Nasik, Chennai, and Thoothukkudi.
In 2019, it had set up a trading company in South Africa and has future plans to build a facility there. The company is also setting up a factory in Uzbekistan that is expected to commence operations by Q1 2022.
“It is one of the largest players in pre-mix formulations space in India, and among the top 5 globally. It caters to the B2B, B2B2C and the ESG Segment, and is looking to tap into tier 2 and 3 markets," the person cited earlier said. “The company is well-placed and poised for future growth since after the covid-19 outbreak, the impetus to nutrition supplements segment is seeing an increasing demand," the person added.
India’s dietary supplement market was valued at close to $4 billion in FY20, and is expected to grow at a Compound annual growth rate (CAGR) of 16.2% to reach over $11.6 billion by FY27, a report published by Research and Markets in June 2021 stated.
Hexagon’s micronutrient premix business focuses on the needs of governments, multinational food manufacturers as well as international organizations to fortify basic foods to meet the needs of the masses, as well as micronutrient powders for home fortification supplied to Unicef. It also offers analytical testing and stability testing to ensure that the product has the nutrients it claims.
While the company’s consolidated operating revenue growth remained flat at 2.3% from ₹210.83 crore in FY20 to ₹211.5 crore in FY21, its net profits grew by 13% from ₹19.7 crore in FY20 to ₹22.26 crore in FY21.
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