Hexagon Nutrition IPO: Issue booked 53 times on Day 3; NII portion sees strong demand, GMP signals healthy listing

The initial public offering of Hexagon Nutrition, which was fully subscribed on the first day of bidding, continued to witness strong investor demand through the final day, with the issue getting oversubscribed by more than 50 times.

All investor categories witnessed robust participation, with the NII portion oversubscribed by 161 times and the QIB segment booked 19.77 times. The retail segment also saw strong enthusiasm, with subscriptions reaching 27 times. Overall, the issue received bids for 115 crore shares against 2.16 crore shares on offer, resulting in an overall subscription of 53.24 times.

The initial public offering (IPO) of Hexagon Nutrition was open from June 5 to June 9. The issue size is ₹139 crore, with a price band of ₹42-45 per share.

The IPO is entirely of an offer for sale (OFS) of up to 3.09 crore shares and does not include any fresh issue component. Existing shareholders Arun Purushottam Kelkar, Subhash Purushottam Kelkar, Aditya Kelkar, and Nutan Subhash Kelkar will dilute their holdings through the OFS.

The company has reserved 50% of the net issue for qualified institutional buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors (NIIs).

Hexagon Nutrition's GMP signals a strong listing

As of today, the grey market premium (GMP) for Hexagon Nutrition stands at ₹7 per share, suggesting that the stock is likely to list above its issue price. Based on this GMP and the upper price band, the estimated listing price for the stock stands at ₹52, reflecting a premium of around 15.6%.

The GMP represents the expected difference between an IPO’s issue price and its anticipated listing price in the unofficial market. However, it is important to note that the GMP is merely an early indicator and should not be relied upon as the sole factor in investment decisions.

About Hexagon Nutrition

Founded in 1993, Hexagon Nutrition is a research-focused nutrition company offering micronutrient premixes, therapeutic nutrition products, and clinical nutrition solutions.

The company provides exposure to India’s growing nutrition, wellness, and micronutrient market, although investors should carefully evaluate the risks highlighted in the Red Herring Prospectus (RHP).

In terms of financial performance, revenue from operations for FY25 increased 9% year-on-year to ₹324.92 crore from ₹297.7 crore in FY24.

Profit after tax (PAT) surged 99.5% to ₹24.3 crore from ₹12.2 crore a year earlier. Margin performance also remained healthy at 12.33% in FY25, compared with 8.36% in FY24 and 6.17% in FY23.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.