Heranba Industries IPO share allocation finalised. How to check status2 min read . Updated: 03 Mar 2021, 08:30 AM IST
- The listing of Heranba shares is likely to happen on March 5th
The share allocation in Heranba Industries IPO has been finalised. Bigshare Services Pvt Ltd is the registrar of the IPO and will manage share allocation and refund. Investors can check the status of their application status on Bigshare Services' website. The IPO of agrochemical company Heranba Industries, which was open between February 23 and February 25, was subscribed over 80 times.
The Gujarat-based company had fixed a price band of ₹626-627 per share. Many brokerages had recommended subscribe to the ₹525 crore issue of the crop protection chemical manufacturer, exporter and marketing company.
The listing of Heranba shares is likely to happen on March 5th.
Heranba offered up to 99.8 lakh shares in the IPO, with 90.2 lakh shares under offer for sale and the rest through fresh issue of shares. Post issue, the shareholding of promoters will fall to 74.2%, from 98.8% earlier.
The company has a 19.5% market share in the pyrethroids market and exports to over 60 countries. Pyrethroids find usage in significant applications across pest protection, environmental health and crop care as well as animal health. The issue closes today.
During FY18-20, Heranba’s revenue grew at 13.3% CAGR to Rs. 951 cr in FY20. Over the same period, its EBITDA grew at a CAGR of 21.4% to ₹129 cr in FY20 while the net profit grew at a CAGR of 44.4% to Rs. 98 cr in FY20.
The company has more than 9,400 dealers/distributors supported by 21 stock depots spread across 16 states and 1 union territory in India. Heranba also exports its products to more than 60 countries.
"The company has also been reducing debt on its books and trades at a reasonable valuation multiple of 25x P/E compared to its peers. The company faces high risk due to shoot up in raw material prices which forms a whopping 70% of its expenses. Moreover, it faces high competition risk from peers such as Rallis India, Bharat Rasayan and Sumimoto Chemical. But despite these risks, Heranba continues to capture a dominant position with sound fundamentals and diversification capabilities. Therefore, we recommend investors to subscribe to this IPO for listing gains. However, investors should also be cautious about the prevailing market sentiment and their own liquidity before aggressively subscribing to all IPOs," said Nirali Shah, Head- Equity Research, Samco Securities.
Another brokerage Religare said: "On the valuation front, the company is trading at a PE of 25x EPS FY20, which is at a discount to the peers. We have a positive view on the company for the long term, given its strong product portfolio, wide distribution network, valued customers and healthy growth opportunity in the sector. Investors having a long-term view can subscribe to the issue."
Emkay Global Financial Services Ltd and Batlivala and Karani Securities India were the book running lead managers to the IPO.