Heranba Industries Limited IPO: Key details that an investor should know before investing

The Rs 625-crore initial public offering (IPO) of Heranba Industries Limited, the Gujarat-based crop protection chemical manufacturer, will hit the capital market on, February 23, 2021. The company has fixed the price band of Rs 626-627 per equity share for the IPO. The public issue will close on February 25, 2021.

The Heranba Industries IPO market lot size is 23 shares and in multiples of 23 shares thereafter.

The public issue consists of fresh equity of Rs 60 crore and an offer for sale of 90.15 lakh equity shares by promoters. The company will utilise the issue proceeds for working capital requirements and general corporate purposes.

Sadashiv K Shetty will sell 58,50,000 equity shares, Raghuram K Shetty will offer 22,72,038 shares. Meanwhile, 8,12,962 shares will be offered by Sams Industries, 40,000 shares by Babu K Shetty and 40,000 shares by Vittala K Bhandary. Promoters of the company include Sadashiv K Shetty, Raghuram K Shetty, Babu K Shetty and Vittala K Bhandary; their total holding equates to 98.85 per cent of the total share capital, as of February 10 2021.

Emkay Global Financial Services and Batlivala & Karani Securities India are the book-running lead managers to the issue. The shares are proposed to be listed on BSE, NSE.

Gujarat-based Heranba Industries is one of the leading domestic producers of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permethrin, lambda-cyhalothrin etc. Its pesticides range includes insecticides, herbicides, fungicides and public health products for pest control.

The company exported products to more than 60 countries in Latin America, CIS, Middle East, Africa, Asia and South East Asia in Fiscal 2020.

This will be the eighth IPO in 2021 after Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company, Stove Kraft, Brookfield India REIT, Nureca and RailTel Corporation of India.