Article

Heranba Industries Limited IPO Note

22 Feb 2021 Nikita Bhoota

Heranba Industries Ltd. (HIL) is coming up with an IPO on February 23, 2021. Here is all you need to know about the IPO.

Heranba IPO

Issue Opens: February 23, 2021
Issue Closes: February 25, 2021
Issue Type: Book Built Issue IPO
Face Value: ₹ 10
Price Band: ₹626-627
Issue Size: ₹625.24cr
Bid lot: 23 Equity shares
Offer for sale: 9,015,000 Equity Shares

About The company:

Heranba Industries Ltd. (HIL) is a crop protection chemical manufacturer, exporter and marketing company based out of Vapi, Gujarat. The company manufactures Intermediates, Technicals and Formulations. It is one of the leading domestic producers of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permitherin, lambda-cyhalothrin etc. HIL's Pesticides range includes insecticides, herbicides, fungicides and public health products for pest control.

It's business verticals include:
(a) Domestic Institutional sales of Technicals: manufacturing and selling of Technicals in bulk to domestic companies;
(b) Technicals Exports: Exports of Technicals in bulk to customers outside India; 
(c) Branded Formulations: Manufacturing and selling of Formulations under its own brands through own distribution network in India; 
(d) Formulations Exports: Export of Formulations in bulk and customer-specified packaging outside India; and
(e) Public Health: Manufacturing and selling of general insect control chemicals by participating in public health tenders issued by governmental authorities and selling to pest management companies. 

Having started its manufacturing activities in 1996, HIL has expanded and diversified its product range and has reached its current status. The company exports its products to more than sixty (60) countries in Latin America, CIS, Middle East, Africa, Asia and South East Asia in Fiscal 2020. As of November 15, 2020, HIL's International Distribution Partners have successfully obtained 371 registrations of Technicals and Formulations in 41 countries across the Middle East, CIS, Asia, South East Asia and Africa. It has presently filed 172 registration applications for Technicals and Formulations products which are pending before the regulatory authorities in respective countries.

HIL's key Branded Formulations like "Jayam", "Progress Plus", "Param", "Cypraplus", "Dyken", "Mantra", "Astron", "Signor", "Prompt", "Cypra", "Heraban", "Sarag", "Alpha Shakti", "Henoxa" "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" command a strong brand recall in India.

Objects of the Offer:

The object of the Offer for Sale is to allow the Selling Shareholders to sell an aggregate 90,15,000 of Equity Shares. The Company will not receive any proceeds from the Offer for Sale.
The fresh issue is proposed to be utilised in the following manner:
  • To fund working capital requirements; and
  • To fund expenditures towards general corporate purposes.

Financials

Particulars (Rs Cr)

FY18

FY19

FY20

Sept 2020

Total Assets

450.46

560.44

624.76

788.12

Total Income

750.41

1,011.84

967.90

619.21

Profit after Tax

46.87

75.40

97.75

66.31

Source: RHP

Company Strengths:

  • HIL has presence in a wide range of products across the entire value chain of synthetic pyrethroids.
  • HIL has product registrations in the domestic and international markets enabling global outreach.
  • HIL has strong product portfolio and wide distribution network.
  • HIL has diversified and stable customer base. These include companies like Sumitomo Chemical India Limited, Sulphur Mills Limited, Biostadt India Limited, Crystal Crop Protection Limited, NACL Limited (Formerly Nagajuna Agrichem Limited), Sharda Cropchem Limited, Meghmani Organics Limited, PI Industries Limited, Krishi Rasayan Group, Agro Life Science Corporation and Shanghai Agricare Chemical Co. Limited. China amongst others who use company products to manufacture their own Formulations and other products.
  • HIL has experienced Promoters and Management Team

Company Strategies:

  • The company intends to enhance and streamline production capacities and operations.
  • The company intends to develop new products at the R&D facility at Unit III (Sarigam Unit).
  • The company intends to enter the highly regulated markets of the US and Europe.
  • The company intends to enhance formulations & technicals business in the international markets.
  • Heranba Industries intends to focus on manufacturing and sales of formulations under its own brands in India and the manufacturing and marketing of Public Health products.
Visit our Current IPOs section for all IPOs open for subscription. To know more about forthcoming IPOs opening soon, visit Upcoming IPOs page.

 


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Heranba Industries Limited IPO Note

22 Feb 2021 Nikita Bhoota

Heranba Industries Ltd. (HIL) is coming up with an IPO on February 23, 2021. Here is all you need to know about the IPO.

Heranba IPO

Issue Opens: February 23, 2021
Issue Closes: February 25, 2021
Issue Type: Book Built Issue IPO
Face Value: ₹ 10
Price Band: ₹626-627
Issue Size: ₹625.24cr
Bid lot: 23 Equity shares
Offer for sale: 9,015,000 Equity Shares

About The company:

Heranba Industries Ltd. (HIL) is a crop protection chemical manufacturer, exporter and marketing company based out of Vapi, Gujarat. The company manufactures Intermediates, Technicals and Formulations. It is one of the leading domestic producers of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permitherin, lambda-cyhalothrin etc. HIL's Pesticides range includes insecticides, herbicides, fungicides and public health products for pest control.

It's business verticals include:
(a) Domestic Institutional sales of Technicals: manufacturing and selling of Technicals in bulk to domestic companies;
(b) Technicals Exports: Exports of Technicals in bulk to customers outside India; 
(c) Branded Formulations: Manufacturing and selling of Formulations under its own brands through own distribution network in India; 
(d) Formulations Exports: Export of Formulations in bulk and customer-specified packaging outside India; and
(e) Public Health: Manufacturing and selling of general insect control chemicals by participating in public health tenders issued by governmental authorities and selling to pest management companies. 

Having started its manufacturing activities in 1996, HIL has expanded and diversified its product range and has reached its current status. The company exports its products to more than sixty (60) countries in Latin America, CIS, Middle East, Africa, Asia and South East Asia in Fiscal 2020. As of November 15, 2020, HIL's International Distribution Partners have successfully obtained 371 registrations of Technicals and Formulations in 41 countries across the Middle East, CIS, Asia, South East Asia and Africa. It has presently filed 172 registration applications for Technicals and Formulations products which are pending before the regulatory authorities in respective countries.

HIL's key Branded Formulations like "Jayam", "Progress Plus", "Param", "Cypraplus", "Dyken", "Mantra", "Astron", "Signor", "Prompt", "Cypra", "Heraban", "Sarag", "Alpha Shakti", "Henoxa" "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" command a strong brand recall in India.

Objects of the Offer:

The object of the Offer for Sale is to allow the Selling Shareholders to sell an aggregate 90,15,000 of Equity Shares. The Company will not receive any proceeds from the Offer for Sale.
The fresh issue is proposed to be utilised in the following manner:
  • To fund working capital requirements; and
  • To fund expenditures towards general corporate purposes.

Financials

Particulars (Rs Cr)

FY18

FY19

FY20

Sept 2020

Total Assets

450.46

560.44

624.76

788.12

Total Income

750.41

1,011.84

967.90

619.21

Profit after Tax

46.87

75.40

97.75

66.31

Source: RHP

Company Strengths:

  • HIL has presence in a wide range of products across the entire value chain of synthetic pyrethroids.
  • HIL has product registrations in the domestic and international markets enabling global outreach.
  • HIL has strong product portfolio and wide distribution network.
  • HIL has diversified and stable customer base. These include companies like Sumitomo Chemical India Limited, Sulphur Mills Limited, Biostadt India Limited, Crystal Crop Protection Limited, NACL Limited (Formerly Nagajuna Agrichem Limited), Sharda Cropchem Limited, Meghmani Organics Limited, PI Industries Limited, Krishi Rasayan Group, Agro Life Science Corporation and Shanghai Agricare Chemical Co. Limited. China amongst others who use company products to manufacture their own Formulations and other products.
  • HIL has experienced Promoters and Management Team

Company Strategies:

  • The company intends to enhance and streamline production capacities and operations.
  • The company intends to develop new products at the R&D facility at Unit III (Sarigam Unit).
  • The company intends to enter the highly regulated markets of the US and Europe.
  • The company intends to enhance formulations & technicals business in the international markets.
  • Heranba Industries intends to focus on manufacturing and sales of formulations under its own brands in India and the manufacturing and marketing of Public Health products.
Visit our Current IPOs section for all IPOs open for subscription. To know more about forthcoming IPOs opening soon, visit Upcoming IPOs page.