Heranba Industries’ grey market premium suggest strong listing gains2 min read . Updated: 03 Mar 2021, 10:36 AM IST
- Heranba Industries shares are expected list on March 5th
- Heranba Industries IPO had got a strong response
The turnaround of the market from last week's sharp fall and attractive valuation could help Heranba make a strong debut on exchanges when the company's shares get listed later this week. The listing of Heranba shares is likely to happen on March 5th.
"Heranba brought the IPO at reasonable valuations leaving ample room for the investors. Markets sentiments are highly bullish and the company operates in one of the hottest sector on D-Street, the agrochemicals sector. These factors should lead to a decent debut on the bourses," said grey-market tracker Abhay Doshi.
"I am expecting Heranba to list in range of ₹860-890 implying around bulky 40% gains. Current grey market premium is around ₹255. Trend seems to be very bullish here as market has regained momentum after last week fall," said Abhay Doshi, founder of UnlistedArena.com, which deals in pre-IPO and unlisted shares.
Investors who had applied for Heranba Industries IPO can check the allotment status at the registrar's website. Bigshare Services Pvt Ltd is the registrar of the IPO and will manage share allocation and refund.
Heranba Industries IPO had got a strong response and was subscribed over 80 times. The IPO of Heranba Industries was open between February 23 and February 25. 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.
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.
Domestic 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."
Heranba Industries (Heranba), incorporated in 1992, is a crop protection chemical manufacturer, exporter and marketing company, based out of Vapi, Gujarat. Heranba is one of the leading domestic producers of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permethrin, lambda cyhalothrin, etc. The company’s business verticals include (a) Domestic Institutional sales of Technicals; (b) Technicals Exports; (c) Branded Formulations; (d) Formulations Exports; and (e) Public Health. The company has three manufacturing and packaging facilities in and around the industrial belt of Vapi, Gujarat.