For next week, investors have Heranba Industries IPO to look forward to. The IPO opens on 23 February and is priced in the range of INR626 – 627 per share. Unlike Nureca IPO where retail investors got only 10% allocation, 35% of the shares are reserved for small investors in Heranba IPO. The crop protection chemical player plans to raise INR625.24 crore at the upper end of the price band. It also helps that the company has attracted premium in the informal market. According to latest information, Heranba IPO GMP is around 30% of the IPO price, making it attractive for investors.
Heranba Industries IPO details
| Subscription Dates | 23 – 25 February 2021 |
| Price Band | INR626 – 627 per share |
| Fresh issue | INR60 crore |
| Offer For Sale | 90,15,000 shares (INR564.34 – 565.24 crore) |
| Total IPO size | INR624.34 – 625.24 crore |
| Minimum bid (lot size) | 23 shares |
| Face Value | INR10 per share |
| Retail Allocation | 35% |
| Listing On | NSE, BSE |
The company is a leading producer of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permitherin, lambda cyhalothrin in the domestic market. In addition, it exports its products to over 60 countries in Latin America, CIS, Middle East, Africa, Asia and South East Asia.
Heranba counts various domestic and multinational agrochemical companies among its clients including Sumitomo Chemical, Sulphur Mills, Biostadt India, Crystal Crop Protection, NACL Limited (Formerly Nagarjuna Agrichem Limited), Sharda Cropchem, Meghmani Organics, and PI Industries.
Read Also: Heranba IPO Review: Should you play this chemical story?
Heranba IPO GMP (Grey Market Premium) rates
| Date | GMP (in INR) | Kostak (in INR) | Subject to Sauda (in INR) |
| 4 Mar 2021 | 210 | 350 | – |
| 3 Mar 2021 | 220 | 350 | 3,500 |
| 2 Mar 2021 | 200 | 350 | 3,500 |
| 1 Mar 2021 | 180 | 300 | 3,000 |
| 27 Feb 2021 | 170 | 300 | 3,000 |
| 26 Feb 2021 | 140 | – | – |
| 25 Feb 2021 | 150 | 220 | – |
| 24 Feb 2021 | 130 | 200 | – |
| 23 Feb 2021 | 100 | – | – |
| 22 Feb 2021 | 160 | 250 | – |
| 20 Feb 2021 | 200 | 250 | – |
| 19 Feb 2021 | 200 | 250 | – |
| 18 Feb 2021 | 170 | 200 | – |
| 17 Feb 2021 | 185 | 250 | – |
| 16 Feb 2021 | 160 | 200 | – |
Chemical players are enjoying special attention in the stock market, especially in the aftermath of China following a “Blue Sky” policy and shutdown of several chemical plants. Late last year, Chemcon Specialty Chemicals IPO listed with 115% gains underlining the growing valuation comfort for profitable businesses.
Meanwhile, Heranba Industries has also shown a similar improvement in profitability and the government’s continued focus on agriculture sector is likely to be helpful for it.
Heranba Industries’ financial performance (in INR crore)
| FY2018 | FY2019 | FY2020 | H1 FY2021 | |
| Revenue | 750.4 | 1,011.8 | 967.9 | 619.2 |
| Expenses | 674.1 | 889.7 | 839.1 | 529.1 |
| Net income | 47.0 | 75.6 | 97.4 | 66.3 |
| Net margin (%) | 6.3 | 7.5 | 10.1 | 10.7 |
Please give contact of grey market operator.