The Rs 625-crore Heranba Industries initial public providing (IPO) will open for subscription next week on February 23 and close on February 25, 2021. Ahead of its public concern, agrochemical firm Heranba Industries shares have been observed quoting a grey marketplace premium of Rs 200 or 32 per cent more than the IPO price tag of Rs 627 apiece. The shares have been trading at Rs 827 apiece in grey marketplace on Wednesday. The firm will join listed peers such as Rallis India Ltd, Sumitomo Chemical India Ltd, Bharat Rasayan Ltd, and Punjab Chemicals and Crop Protection Ltd. Equity shares are proposed to be listed on BSE and National Stock Exchange. The subscription for anchor investors will open on February 22, 2021.
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The Gujarat-based crop protection chemical manufacturer manufactures distinct varieties of pesticides such as insecticides, fungicides, herbicides, and other pest manage items. It is one of the top domestic producers of synthetic pyrethroids like cypermethrin, bifenthrin, deltamethrin, lambda-cyhalothrin, and so on. AR Ramachandran, Co-founder & Trainer, Tips2Trade. told TheSpuzz Online that in spite of a robust client base and enhancing return ratios, Heranba Industries PE is on the larger side as compared to its market peers. “However, given current positive sentiment in the market, subscribed investors should book part profits on listing gains,” he mentioned.
Price to earnings ratio (P/E) of Rallis India stands at 28.77, Sumitomo Chemical India Ltd at 77.38, Bharat Rasayan Ltd 26.87, and Punjab Chemicals and Crop Protection Ltd at 95.10. Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares, told TheSpuzz Online, that at the upper price tag band at Rs 627, the concern is priced at 19X PE [based on annualised EPS H1FY21] which appears affordable. The firm has been performing effectively on the monetary front, and operating margins are expanding regularly. “Given the positives, the issue should garner very good responses from investors which should ensure a good listing. However, there are a lot of options available in listed space with a proven track record,” Doshi mentioned.
Heranba Industries Limited has a presence in the complete item worth chain of agrochemical market i.e. intermediates, technicals and formulations. It operates in 5 enterprise verticals of domestic institutional sales of technicals, technicals exports, branded formulations, formulations exports and public overall health items. Heranba Industries Limited has 3 manufacturing plants in and about Vapi in Gujarat and Corporate workplace at Mumbai.
Last week, a different agrochemical technicals firm India Pesticides Ltd had filed a DRHP with Sebi to raise Rs 800 crore via an initial public providing.