Agrichemicals manufacturer Heranba Industries’ Rs 625-crore initial public supplying (IPO) will open for subscription on Tuesday, February 23, 2021, and will be obtainable for subscription till Thursday, February 25, 2021. The subscription for anchor investors will open on February 22, 2021. The basis of share allotment is most likely to be finalised on March 2 and shares are anticipated to be credited to demat account on March 4. According to Axis Capital IPO note, post challenge, promoters and promoter group shareholding will come down to 74.15 per cent from 98.85 per cent even though public shareholding will go up to 25.85 per cent from 1.15 per cent. The grey marketplace premium of Heranba Industries shares is steady at Rs 200 or 32 per cent from the IPO value.
Heranba Industries’ public overall health goods contain common insect handle, termiticide, larvicide, indoor residual spray, rodenticide and cockroach gels which are Formulations of synthetic pyrethroids. The agrochemical firm is one of the major domestic producers of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permethrin, lambda-cyhalothrin, and so on. Anish Moonka, Head of Research, JST Investments, told TheSpuzz Online that the sheer quantity of competitors (10+) with considerable marketplace share showcases a lack of any pricing energy. Given affordable valuations of 20 instances earnings, Heranba Industries appears great for listing gains in the quick term. “For the long term, we would like to monitor some more key deliverables before taking up any action,” Moonka added.
Emkay Global Financial Services and Batlivala & Karani Securities India are the book operating lead managers to the IPO, even though Bigshare Services Pvt Ltd is the registrar of the challenge. Keshav Lahoti, Associate Equity Analyst, Angel Broking Ltd, expects the enterprise to acquire marketplace share and boost margins in the future. Heranba Industries has priced its challenge at 22.1x PE on a trailing basis, which appears really affordable to Lahoti in context to the future prospects of the enterprise. “We expect a good listing of Heranba Industries, and are positive on the long term prospects of the firm. We recommend ‘subscribe’ to the Heranba Industries IPO for long term as well as for listing gains,” Lahoti added.
An analyst at Marwadi Shares and Finance Ltd has also encouraged to ‘subscribe’ to the Heranba Industries Ltd IPO. Considering FY 20 adjusted EPS of 24.43 on a post-challenge basis, the upper value band implies a P/E ratio of 25.67X. “Seeing the future prospects of the company, sustainable and growing financial statements of the past years, we see the company’s price band is at a reasonable valuation,” the analyst stated.