Heranba Industries IPO Review

With so many upcoming IPOs in the share market, it’s pretty different and confusing to choose which IPO will be beneficial for you. To handle all such queries and issues that you might be facing in regards to one of such Agrochemical-based companies, we are pleased to present you with the Heranba Industries IPO Review.

We are glad to share the complete details of this IPO covering its dates, promoters, objectives, and financial reports. Apart from this, in this Hernaba industries IPO Review, we will be sharing the benefits and risks associated with Heranba Industries IPO.

However, before moving ahead, let’s understand the definition of IPO.

IPO stands for Initial Public Offering and it is the process followed by a private listed company to sell its shares first time in the stock market after a green flag is waved off by SEBI or Securities and Exchange Board of India.

Once the shares are listed in the IPO, they are bought by several parties under reserved categories known to be QIB (Qualified Institutional Buyer), Retail Institutional Investor (RII), and Non-Institutional Investor or NII. 

Now, you might be curious to know why companies go public? Well, with a certain specific objective, various companies opt for IPO, and by the end of the IPO process, the company shares are ready to be launched in Indian Stock Exchanges such as NSE and BSE.

Perhaps, we believe this information is sufficient to understand the IPO cycle, let us now quickly move the company’s background and products through Heranba Industries IPO Review.

Heranba Industries IPO Details

In the Heranba Industries IPO Details, we are going to discuss the company’s background before moving to its price, size, and date.

Each IPO is unique in its structure, varies in its objective, and also different in its profit terms. Hence, giving extra and focus on its details is crucial too!

No doubt bidding and allotment dates are important, but understanding its fresh issue, stock exchanges, market lot size is necessary too.

Now, believing that the information was adequate enough, let’s move ahead on the detailed Heranba Industries IPO Review.

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Heranba Industries IPO Date

After considering the above details, and Heranba Industries IPO review, let’s have a quick glance at Heranba Industries IPO dates. 

 

From the aforementioned table, we can clearly view that the firm’s IPO will initiate from 23 Feb 2021 to 25 Feb 2021 with an issue type of Book Built issue IPO.

Emkay Global Financial Services Limited and Batlivala & Karani Securities India Private Limited will be handling the overall process of this IPO.

If you find Heranba Industries IPO review useful to make your investment decision, then get started by opening a demat account.

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To open a demat account for free, just fill the form given below:

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Heranba Industries IPO Price

This upcoming IPO has a face value of Rs. 10 per equity share and each equity share of Heranba IPO costs Rs. 626 to Rs. 627. Thus the price band of the IPO is 626-627. 

Heranba Industries IPO price details are shared as underneath-

 

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Heranba Industries IPO Size

Next the Heranba Industries IPO review covers the important information of the issue size. Find all the useful details in the table below.

 

As per the data on the above table, we can clearly say that the market lot of this IPO is 23 shares, and each equity share costs around Rs. 626 to Rs. 627.

Hence, an investor has to make a minimum investment of Rs. 14398-14,421 on this IPO.

Additionally, it is important to know that the quota maintained for categories such as HNI, RII, and QIB is highly different. 

Shares quote booked for QIBs is 50 percent, while the same for HNI investors is 15 percent and 35 percent for retail investors.

Besides, a Retail Investor can apply for up to 13 lots containing 299 (23 x 13) shares. 

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Heranba Industries IPO Allotment

Are you aware of the post allotment process of this IPO? Well, if not then we got you covered! 

Below are the post bidding details of the Heranba IPO allotment status-

The shares of this IPO will be allotted on March 02, 2021, and refunds will be initiated on March 03, 2021. Further, Heranba Industries shares will be credited on March 04, 2021, directly in the demat accounts.

Now, after knowing the Heranba Industries IPO Review, do you know the post subscription status? Perhaps, yes!

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Heranba Industries IPO Listing

Everyone in the market is quite confused related to the listing of Heranba IPO. Some investors believe that such a medium-based IPO will not be listed at BSE, while others are still unclear! 

The listing of Heranba Industries shares post IPO will be listed on both the exchanges on [●] post which the investors can trade the shares accordingly.

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Heranba Industries IPO Promoters

There are two Promoters of Heranba Industries Limited IPO and they are as below-

1. Sadashiv K. Shetty.
2. Raghuram K. Shetty.

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Heranba Industries IPO Objectives

It’s a fact that each IPO arriving in the share market must have an objective behind raising fresh issues and offer for sale. 

Well, let’s move ahead with the Heranba Industries IPO review to discuss the objective behind this Initial Public Offerings.  

The company plans to utilize funds in the following manner: 

1. To fund working capital requirements
2. To fund expenditures towards general corporate purposes
3. To meet public issue expenses. 

Perhaps, in this way, the firm tends to create a public trading market for the Equity Shares by listing them on the Indian Stock Exchanges particularly BSE and NSE. 

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 Heranba Industries IPO GMP

Perhaps, the information in regards to Heranba Industries IPO GMP is highly crucial to know. GMP refers to Grey Market Premium and represents the value or cost at which shares of the company are being traded in the grey market.

The term Grey Market refers to the unregulated marketplaces where trading happens without the stock market platform. 

Although Grey Market seems to be illegal however it seems to be unofficial rather than illegal because a huge number of traders observe this as a greater opportunity as it exemplifies the present and future IPO’s performance.

Hence, the better the GMP value of an IPO, the better will the chances of getting profits while selling.

Presently, Heranba Industries IPO GMP ranges between Rs. 200 to Rs. 220.

Now, let’s have a look at the benefits related to the Heranba Industries IPO Review!

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Heranba Industries Company Details

Established in 1996, Heranba Industries is one of the leading players in Agrochemical products which is based in Gujarat, India.

The key objective of the firm is to offer innovative products to farmers to increase their farm output and help the public in overcoming certain pest control issues. 

The firm strongly works on the founding ideals of Mr. Sadashiv K Shetty & Mr. Raghuram K Shetty who believe that Heranba Industries is a perfect place where “Chemistry is at its Best!”

The firm products are distinguished in four broad categories, namely Technicals, Intermediary, Formulation, and Public Health. 

The company produces several synthetic pyrethroids and its intermediaries like cypermethrin, deltamethrin, lambda-cyhalothrin, etc. at the domestic level. 

Not just this, Heranba Industries produces a plethora of pesticides that include insecticides, fungicides, herbicides, and other pest control products for small, medium, and large scale farmers and also for the general public.

In addition to this, the firm has its own three Manufacturing units situated in India that aims to provide a wide range of Crop Protection and Public Health solutions after proper analysis and availing Research and Development (R&D) in-house team’s support.

The company has a state-of-the-art R&D team that deeply checks the quality of the raw materials and finished materials by using a sophisticated and advanced type of equipment available in their Laboratory such as HPLC, Gas chromatograph, UV spectro-photometer, Moisture Analyser, Bursting Strength Analyser. 

Surprisingly, the public health care products such as rat Kill, Protex, Proton, Spectra, Temper EC, Mantra Gel, etc. are provided in both Government Tenders and to Pest control firms.

In India, it has over 8600 sellers across 16 states and 1 union territory whereas, in the international market, it exports its products to more than 60 countries through international distribution partners.

Do you know the company generates 50% of its revenue from exports? 

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Heranba Industries IPO Financial Results

Understanding the financial reports of a company is highly important before applying to an IPO because it reflects the expected profits and losses to an investor or subscriber. 

As it is said by Luis Alberto Urrea that numbers don’t lie and all things are considered while calculation and it goes perfect for the stock market where stories based on math can’t be neglected.

So, let us have a quick look at the financial performance of the company to complete the Heranba Industries IPO review. 

The below table represents the stats from over the last three years:

 

A speedy look at the table reflects the Heranba Industries financial reports in the course of the most recent three years- 2018, 2019, and 2020 that clearly depict critical development.

Following key points can be presented from the aforementioned table-

• During this period, the total income of the organization showed a rise from Rs. 750.41 to Rs. 967.90; at a CAGR of 8.85%. 
• Additionally, the organization’s total assets developed at a CAGR of 11.52%. 
• Further, somewhere in the range of 2018 and 2020, the profit after taxes and all, a considerable rise can be seen at a CAGR of 27.76%. 

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Heranba Industries IPO Benefits

Although there are certain advantages of IPO, ending up with this Heranba Industries IPO review, let’s consider some of the top advantages of this IPO. 

• Heranba Industries Limited has a presence in a wide scope of products across the whole chain of manufactured pyrethroids. The scope of its business activities for example from the assembling of Intermediates to the selling of Branded  Formulations, both in the Indian and global business sectors, offers plentiful opportunities to upgrade income and benefit. 
• One of the other benefits of subscribing to Heranba Industries IPO is that the firm has gotten registrations for over 371 Technicals and Formulations in 41 nations across the Middle East, CIS, Asia, South East Asia, and Africa. 
• Heranba Industries has in excess of 9400 vendors and distributors supported by its 21 stock terminals spread across 16 states and one Union Territory in India to satisfy market needs. 
• The organization has an assorted and stable customer base that holds pretty good stability since the main ten clients don’t add to more than 20-odd percent of the organization’s income. 
• The Board of Managers and the Promoters of Heranba have enriched experience in the industry. Their promoters have more than five years of experience with the agrochemicals area and are satisfactorily able to deal with the operations of the organization. 

Besides these benefits related to Heranba Industries, there are certain advantages of subscribing or bidding in this IPO and industry. Let’s have a look at them as below-

1. The items produced by Heranba Industries are known to many people. Hence, there’s a factor of popularity and trust related to it, which is why chances of purchasing its products increase.
2. A minimum investment of Rs. 14398 is pretty affordable and convenient to many stock market investors and traders who are interested to put their money in this IPO. 
3. The organization is exporting its manufactured items to boomed nations with great profits. This offers a chance to produce solid incomes later on. 
4. According to a report, the Indian Pyrethroids market is known to boost at a CAGR of 19.6 percent and arrive at a business estimation of around USD205 million by 2025. 

Do you know that the Asia-Pacific area represents the biggest sale in the worldwide agrochemicals industry?

1. In India, the Agrochemicals market rose at a CAGR of 6.5 percent from the year 2014 to 2019 and in 2019, it arrived at an estimation of INR 2 lakh million. 
2. Rising growth and developing interest in food across the globe are the essential reasons behind this development. The Indian Agrochemicals industry is relied upon to develop at a CAGR of 7.9 percent and arrive at an estimation of INR 4 lakh million by 2025.

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Heranba Industries IPO Risks

Every coin has two phases and so does this IPO. We have seen the one side, now we must see the other i.e., Heranba Industries IPO risks. 

Also, look at some of the common disadvantages of IPO. Heranba Industries IPO Review also covers the risk associated with it so that you can make the strategies accordingly.

Some of the risks associated with Heranba Industries IPO are as follows-

1. While there are no organizations in precisely the same business as Heranba, it faces rivalry from different organizations in the Agrochemicals area. 
2. The products manufactured by Heranba generate hazardous effluents. Therefore, if there is any change in government policies for such industries, then the company can face a challenge.
3. Raw materials comprise a huge level of Heranba’s complete costs. Any expansion in costs and any fall in the stock would tangibly unfavorably influence its business. 
4. There are exceptional lawful procedures including the Company, Promoters, and certain Directors that may negatively influence its business, monetary condition, and outcomes of tasks.
5. Heranba has not gone into long-haul agreements with its clients for buying its items nor for the inventory of raw materials with its providers. The organization is dependent upon uncertainties in demand and there is no confirmation that these clients and providers will keep on buying its items or offer crude materials to it or that they won’t downsize their orders. Hence, this could affect the business and monetary execution of the organization. 
6. Finally, the Agrochemicals business is exceptionally determined by new items on the rear of innovative work and R&D (Research and Development). Thus, any new item entering the section can hurt Heranba’s business. 

Now, looking at Heranba Industries IPO Review, advantages and disadvantages you might be wondering whether you should invest in its shares or not? 

Perhaps, it’s time to look at the same!
By reading the Heranba Industries IPO Review, you must now be able to take the right decision of whether or not to invest in this IPO. 

Before proceeding ahead to bid on the IPO, let’s do some fundamental analysis with its peers. 

The below table represents three companies, namely Rallis India Limited, Sumitomo Chemical India Limited, and Bharat Rasayan Limited-

 

Although the peers shown above are not the direct competitors of Heranba Industries, however, it gives us a glimpse about where the firm is currently standing. 

With a favorable Return on Net Worth or RoNW and zero long-term debt payment, Heranba Industries is dramatically boosting into a leading role in the Agrochemical industry.

Now, if we have a look at the valuation factors of the same peers, we come to the following table-

 

According to the companion bunch chosen by Heranba in the RHP (Red Herring Prospectus), the normal PE Ratio is 60.99.

On the off chance that we take a look at the value band of Heranba Industries IPO and ascertain the P/E Ratio at the greater cost of Rs.627, at that point we get an estimation of P/E Ratio of 25.05; which is below the average ratio of a business. 

Hence, we would like to inform you that while choosing the IPO you must look at several parameters, factors and form an in-depth analysis before putting your time and money into it. 

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In case you are looking to apply to this IPO, why don’t you put your details in the form below and we will assist you further in this process: