Heranba Industries IPO Review

Heranba Industries Ltd, is a Gujarat-based company and leading crop protection agro-chemical manufacturer. The company manufactures different types of pesticides including insecticides, herbicides, fungicides and other pest control products. Company has a strong network in the domestic as well as in the overseas market. It exports its products to more than 60 countries through international distribution partners. Company is raising Rs 625 crore (565 offer for sale and 60 fresh issue) through this IPO to finance the company’s working capital requirements and general corporate purposes.

PromoterMr. Sadashiv K Shetty &
Mr. Raghuram K Shetty
IPO opens onFeb 23, 2021
IPO ends onFeb 25, 2021
Share Listing dateMarch 03, 2021
Face valueRs 10 per equity share
IPO PriceRs 626 to 627 per share
Outstanding equity share prior to offer390,56,530 Equity Shares
Fresh issue amountupto Rs 60 Cr
Offer for sale90,15,000 Equity Shares (aggregating upto Rs 565.24 Cr)
Market Lot Size23 shares
Max lots per retail investor13 lots
Pre-IPO Market cap (assuming higher band price)2449 Cr
Post-IPO Market cap (assuming higher band price)2509 Cr

Sale and Profit/Loss data

Here is sale and net profit data in INR Crores

Sep 30 2020 (half yr)Sep 30 2019 (half yr)Mar 31 2020 (1y)Mar 31 2019 (1y)Mar 31 2018 (1y)
Total Revenue6195029681012750
Net profit6653977546
Revenue growth20.9%-4.3%34.9%

Company valuation

It is small cap company and post IPO market cap is Rs 2509 Cr. at the upper band of IPO price and their total sale is Rs. 618 Cr in half years 2020-21. The market cap to projected annual sale ratio is approx. 2. This ratio is fairly good considering the growth of the company. Subscriber can expect an upside of 25% to 50% after listing.