HERANBA INDUSTRIES LTD - IPO


Company Promoters:

Sadashiv K. Shetty and Raghuram K. Shetty are the company promoters.


Company Profile:-

  • Heranba Industries Limited is incorporated in 1992 as crop protection chemical manufacturer, exporter and marketing company based out of Vapi, Gujarat. Company manufacture Intermediates, Technicals and Formulations. Company is one of the leading domestic producers of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permitherin, lambda cyhalothrin etc. Companies Pesticides range includes insecticides, herbicides, fungicides and public health products for pest control.
  • Companies business verticals include (a) Domestic Institutional sales of Technicals (b) Technicals Exports (c) Branded Formulations (d) Formulations Exports and (e) Public Health.
  • Company has its in-house R&D team for product development and improvisation which is well supported by its product registration team. Companies R&D facilities at Unit I and II are recognized by the Department of Scientific and Industrial Research, Ministry of Science & Technology, Government of India (DSIR). Companies new R&D facility at Unit III, Sarigam has become operational from October, 2020.
  • Company exported its products to more than 60 countries in Latin America, CIS, Middle East, Africa, Asia and South East Asia in Fiscal 2020. As of November 15, 2020, its International Distribution Partners have successfully obtained three hundred and - seventy one (371) registrations of its Technicals and Formulations in forty one (41) countries across Middle East, CIS, Asia, South East Asia and Africa.
  • Company has an extensive distribution network in India supported by a skilled sales force. Company has more than 9,400 dealers having access to 21 depots of its Company across sixteen 16 states and 1 union territory in India supporting the distribution of its products. Company participate in various international & domestic agrochemical exhibitions and industry conferences to market its products.

Some of its Branded Formulations sold to farmers in the domestic markets are “Jayam”, “Progress Plus”, “Param”, “Cypraplus”, “Dyken”, “Mantra”, “Astron”, “Signor”, “Prompt”, “Cypra”, “Heraban”, “Sarag”, “Alpha Shakti”, “Henox[a” “Glory”, “Chakde”, “Heraquat”, “Zinta”, “Glory 71”, “Shera”, “Pendant”, “Atria”, “Macamba”, “Sulphy”, “Mask”, “Silicon Plus”, “Propizole”, “Vintage”, “Exort”, “Tulip”, “Mandy”, “Silicon”, “Shado”, “Heraphon”, “Temper” and “Rat Kill” among others.

Risk Factor:

  1. As its products and facilities can be hazardous to nature company is prone to regulatory scrutiny.
  2. Recent years, two of its facilities saw closure for a few days, owing to the violation of certain rules and untoward incidents.
  3. Promoter group have been issued warnings by the SEBI for the execution of certain trades in the stock market in the past & disqualified as directors of the company. 
  4. There is a currency risk as 50% of the Hernaba's revenue comes from exports & it seems company dosen't hedge its currency risk.


Issue Details:-

Issue Period

:

Issue opens on: Tuesday, February 23, 2021
Issue closes on: Thursday, February 25, 2021

Price Band

:

Rs.626/- to Rs.627/- per equity share

Bid Lot

:

23 Equity share and in multiple of 23 equity share thereafter.

Issue Size

:

Rs. 625.24 crore

Issue break-up

:

QIB - 50 % of the offer - Rs. 312.62 Cr
NIB - 15 % of the offer - Rs. 93.79 Cr
RET - 35 % of the offer - Rs. 218.83 Cr

Listing

:

BSE & NSE

Registrar

:

Bigshare Services Private Limited

UPI

:

All Retail Applications through brokers are compulsorily in UPI Mode