Heranba Industries IPO: What you should know before investing

Agro-chemical company Heranba Industries is a Gujarat-based firm, which will hit the IPO market tomorrow (23 February). The offer will be on 25 February 2021. The price band for its IPO has been fixed at Rs 626–627. The company is planning to raise Rs 625 crore via this IPO.

What you should know about the company

  • The subscription for anchor investors will open today (22 February 2021).

  • The company reported an increase in profit before tax (PAT) by Rs 458.13 million or 60.04 per cent from Rs 763.07 million in the financial year 2018 to Rs 1,221.20 million in the financial year 2019. This rise was mainly due to increase in export revenue and higher realizations in the export market. The company in its DRHP reported improvement in profitability margins by 1.90 per cent from 10.17 per cent of the total revenue for the financial year 2018 to 12.07 per cent of the total revenue for the financial year 2019.

  • The company reported increase in profit by Rs 285.26 million (or 60.85 per cent) from Rs 468.76 million in the financial year 2018 to Rs 754.02 million in the financial year 2019.

  • The firm is offering fresh issue of shares worth Rs 60 crore and an offer for sale of 90,15,000 shares by promoters.

  • Last week, in the grey market, the share of the company was up by around 32 per cent at Rs 827 per piece.

  • Investors can subscribe to the IPO for a lot of 23 shares or in multiples thereof. Retail investors can bid for a maximum of 13 lots.

  • The crop protection chemical manufacturer produces different types of pesticides, including insecticides, fungicides, herbicides, and other pest control products.

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