PLANT

GROWTH

FERTILIZER
INSECTICIDES
HERBICIDES

All you need to know about

Heranba Industries Ltd IPO
Issue Details
Issue Amount : `626.34 - `625.24 Crores
Total shares for sale : 9,973,466 - 9,971,938 upto Equity Shares
Issue Period : Feb 23, 2021 - Feb 25, 2021
Face Value : �`10 per share
Price Band : `626 to `627
Lot Size : �23 shares and in multiple thereafter
Registrar : Bigshare Services Private Limited
Source : BRLM

Offer Breakup

Category Allocation Issue size Issue size

(Shares) (` in crore)

Lower Band Upper Band Lower Band Upper Band

QIB 50% 4,968,732 4,985,968 312.17 312.62

NIB 15% 1,496,020 1,495,791 93.65 93.79

Retail 35% 3,490,714 3,490,178 218.52 218.83

Total 100% 9,955,466 9,971,937 624.34 625.24

Source : BRLM. Employee portion excluded in table

IPO timeline `
Issue opens on:
Tuesday, Feb 23, 2021 `

23
Issue closes on:
Thursday, Feb 25, 2021

FEBRUARY

02 Finalization of 03 Refunds/Unblocking
MAR 2021 basis of allotment MAR 2021 ASBA fund

04 Credit of equity 05 Trading

MAR 2021 shares to DP account MAR 2021 commences

Source : BRLM, Dates are tentative

The objective of the offer

01 The object of the Offer for Sale is to allow the Selling Shareholders to
sell an aggregate 90,15,000 of Equity Shares subject to finalization of
Basis of Allotment held by them.

02 To use net proceeds of fresh issue less the offer

expense to fund working capital requirements.

03 To use net proceeds of fresh issue less the offer

expense to fund expenditures towards general
corporate purposes

Additionally, Heranba Industries expects to achieve the

benefits of listing of their Equity Shares on the Stock
Exchanges and enhancement of their Company’s
brand name and creation of a public market for their `
Equity Shares in India.
Source : RHP and DRHP
About the company
They are a crop protection chemical manufacturer, exporter and marketing
company based out of Vapi, Gujarat. They manufacture Intermediates, Technicals
and Formulations. They are one of the leading domestic producers of synthetic
pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permitherin,
lambda cyhalothrin etc. Their Pesticides range includes insecticides, herbicides,
fungicides and public health products for pest control. Their 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 our own brands through our
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.

They exported their products to more than 60 countries in Latin America, CIS,
Middle East, Africa, Asia and South East Asia in Fiscal 2020. As of November 15,
2020, their International Distribution Partners have successfully obtained 371
registrations of their Technicals and Formulations in 41 countries across Middle
East, CIS, Asia, South East Asia and Africa. Their International Distribution
Partners have presently filed 172 registration applications for their Technicals and
Formulations products which are pending before the regulatory authorities in 41
countries. They have their in-house R&D team for product development and
improvisation which is well supported by their product registration team. They
have an extensive distribution network in India supported by a skilled sales force
with more than 9,400 dealers having access to 21 depots of our Company across
16 states and one union territory in India supporting the distribution of their
products. They have three manufacturing and packaging facilities in and around
the industrial belt of Vapi, Gujarat having 174 reactors with an aggregate
manufacturing capacity of 14,024 MTPA.
Source : RHP and DRHP
Strengths

Presence in a wide range of Product registrations in the Strong product portfolio

products across the entire domestic and international and wide distribution
value chain of synthetic markets enabling global network
pyrethroids outreach

Diversified and stable Experienced Promoters

customer base and Management Team

Source : RHP and DRHP

Risks

Reduction or loss in sales to Raw materials constitute a No long term agreements

institutional customers will significant percentage of our with customers and
adversely impact business Company’s total expenses. suppliers. Uncertainty in
Price fluctuation will impact demand and supply will
business impact business

Adverse developments in Absence of large customers Failure to successfully

legal proceedings they are and dependance on small register products in India
involved in could impact customers increases demand and international markets
business uncertainty will affect result of business
and operations

Source : RHP and DRHP

Important Financials Data

Revenue from operations decreased by ₹53.07 Cr or 5.28% from ₹1,004.44

Cr in the Financial Year 2019 to ₹951.37 Cr in the Financial Year 2020. The
decrease was primarily due to decrease in sales of Technicals due to
government mandated covid lockdowns.

HY HY FY FY FY
(in ` Crore) Apr - Sep Apr - Sep March March March
2020 2019 2020 2019 2018

Total Assets 788.12 619.64 624.76 560.44 450.46

Total Revenue 618.34 501.65 951.37 1,004.44 745.10
from operations
100.14 76.29 145.88 138.81 93.12
EBITDA

Profit after Tax

66.31 53.24 97.75 75.40 46.87

Source : RHP

Particulars (in INR Crore) FY20 FY19 FY18

Revenue from Operations 951.37 1,004.44 745.10

Revenue Growth (%) -5.28 34.8 NA

EBITDA 145.88 138.81 93.12

Net Profit for the period 97.75 75.40 46.87

Net Profit as % to Revenue 10.27 7.51 6.29

Basic EPS (Rs ) 25.03 19.31 12.00

RONW (%) 30.47 33.05 29.8

Source : RHP. Revenue growth cannot be computed due to data not available for FY 17

Source : RHP
Peer Comparison

Name of Face Value P/E EPS (`) RONW (%) NAV

the company (/share) (₹ per share)

Heranba Industries 10 [*] 25.03 30.47 82.14

Limited

Peer Group

Rallis India Limited 1 28.77 9.51 13.11% 72.51

Sumitomo Chemical 10 77.38 4.1 16.75% 24.48

India Limited

Bharat Rasayan 10 26.87 371.03 27.94% 1327.73

Limited

Punjab Chemicals
10 95.1 8.77 11.00% 79.72
and Crop Protection
Limited

Source: RHP. Financial Statements for the year ending March 31, 2020 and closing market price per share as on February 3, 2021 was taken
from https://www.bseindia.com

Heranba’s information has been taken from its restated financial statement.
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country represents a huge appetite for Initial Public Offers (or IPOs). In the
period April 2020 to Jan 2021, the country’s stock exchanges (both NSE and
BSE combined) witnessed 19 IPOs and raised proceeds worth Rs 34,003.78
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Last 10 IPO Performances

Date IPO Name Issue Size Retail Total Issue Price List Price Listing CMP on Current Gains
(` in crs) Subscription Subscription (in ₹) (in ₹) Gains(%) 16/02/21 (in ₹) (%) 16/02/21

28-Jan-21 Stove Kraft Ltd 412.63 26.04 385 385 445.95 15.83 483.5 25.58

25-Jan-21 Home First Finance 1153.72 6.59 518 518 527.4 1.81 516.85 (0.22)

22-Jan-21 Indigo Paints Ltd 1170.56 6.5 1490 1490 3118.65 109.31 2552.7 71.32

20-Jan-21 Indian Railway Finance Corp 4633 1.59 26 26 24.85 -4.42 25.25 (2.88)

23-Dec-20 Antony Waste Handling Cell Ltd 300.53 16.55 315 315 407.25 26.29 302.55 (3.95)

17-Dec-20 Mrs Bectors Food Specialities Ltd 540.54 29.33 288 288 501 106.79 381.3 32.40

4-Dec-20 Burger King India Ltd 796.5 68.15 60 60 115.35 130.67 142 136.67

11-Nov-20 Gland Pharma 6479.55 0.24 1500 1500 1710 13.4 2235 49.00

22-Oct-20 Equitas Small Finance 517.6 2.08 33 33 31 -6.06 46.5 40.91

7-Oct-20 Likhitha Infra 61.2 23.71 120 120 130 8.42 276 130.00

Source : Moneycontrol

For more details refer offer documents on sebi www.sebi.gov.in

The securities quoted are exemplary and are not recommendatory. Such representations are not indicative of future results.
Source of statistical information, charts, graphs etc – RHP, DRHP, Moneycontrol.

Investments in securities market are subject to market risks, please read all the related documents carefully before investing. SEBI Registration no.-INZ000240532, BSE-6707,
NSE-90165. visit www.paytmmoney.com for complete disclaimers. Regd Office:136, First Floor, Devika Tower, Nehru Place, New Delhi- 110019