About the Company:
Heranba Industries is a crop protection chemical manufacturer, exporter and marketing company based out of Vapi, Gujarat.
Company manufactures Intermediates, Technicals and Formulations and is one of the leading domestic producers of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permitherin, lambda cyhalothrin etc.
Company’s Pesticides range includes insecticides, herbicides, fungicides and public health products for pest control.
Company’s business verticals include:
Domestic Institutional sales of Technicals: manufacturing and selling of Technicals in bulk to domestic companies.
Technicals Exports: Exports of Technicals in bulk to customers outside India.
Branded Formulations: Manufacturing and selling of Formulations under our own brands through our own distribution network in India.
Formulations Exports: Export of Formulations in bulk and customer specified packaging outside India.
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.
Company’s Distribution network:
Company has more than 9,400 dealers having access to 21 depots of our Company across 16 states and 1 union territory in India supporting the distribution of our products.
Company’s Manufacturing Facilities:
Company has 3 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.
Company’s Expansion Plans:
As a part of company’s expansion plans, we have in the year 2018 acquired on lease from GIDC around 55,000 sq. mtrs. of land at Sarigam, near Vapi, Gujarat out of which around 22,300 sq. mtrs. is being used for Formulations facility, which will streamline our production by some new reactors and establishing an automated facility for packaging the Formulations.
Company’s Customer base:
Various domestic and multinational agrochemical companies operating in and outside India are customers for the Technicals manufactured by Heranba Industries Ltd.
These include companies like Sumitomo Chemical India , Sulphur Mills , Biostadt India , Crystal Crop Protection, NACL Ltd, Sharda Cropchem , Meghmani Organics , PI Industries, Krishi Rasayan Group, Agro Life Science Corporation and Shanghai Agricare Chemical Co., China amongst others who use Heranba Industries products to manufacture their own Formulations and other products.
Key Players in Agrochemicals Market:
Key players in the India Pyrethroids market:
In 2019, Heranba Industries Limited dominated the India pyrethroids market, accounting for a share of 19.5% of the total Indian pyrethroids production values.
Heranba Industries Ltd was followed by Tagros Chemicals (14.8%), Hemani Industries (9.9%), Dhanuka Agritech (8.7%), Insecticides (India)(7.9%), Syngenta India (6.2%), Sumitomo Chemical India (5.8%), UPL Limited (4.2%), Bayer CropScience (3.9%), Rallis India (3.6%), Excel Crop Care (3.4%) and Others (12.1%).
China moving away from Chemical Industries:
India has emerged as the largest pyrethroid manufacturer over the years. More than half of the global demand for Pyrethroids comes from China, after importing intermediates from India, which is used to produce pyrethroid.
Yet China’s adoption of the’ Blue Sky’ program to realize green GDP has led to the shutdown of several chemical plants. This, in turn, is expected to result in higher volumes of Pyrethroids being exported out of India.
Entering the highly regulated markets of USA and Europe.
Company’s International Distribution Partner in the USA has also applied for registration of Lambda Cyhalothrin Technical manufactured by Heranba Industries Ltd as another source of supply to their existing registration for this product.
Management Team:
- Mr. Sadashiv K. Shetty (Designation: Chairman and Executive Director)
- Mr. Raghuram K. Shetty (Designation: Managing Director)
Objectives of the Issue:
Offer for Sale: (Rs. 565 cr )
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. Our Company will not receive any proceeds from the Offer for Sale.
Fresh Issue: (Rs. 60 cr)
- To fund working capital requirements.
- To fund expenditures towards general corporate purposes.
Positives for the Company:
- Presence in a wide range of products across the entire value chain of synthetic pyrethroids.
- Product registrations in the domestic and international markets enabling global outreach.
- Strong product portfolio and wide distribution network.
- Diversified and stable customer base.
Financials of the Company:
| (in Crores) | FY 18 | FY 119 | FY 20 | 30th Sept 20 |
|---|---|---|---|---|
| Revenue | 750.4 | 1011.8 | 967.9 | 619.2 |
| Net Profit | 46.8 | 75.4 | 97.7 | 66.3 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Heranba Industries | 10 | 25.03 | 25.04 | 30.47% | 82.14 |
| Rallis India Ltd | 1 | 9.51 | 28.77 | 13.11% | 72.51 |
| Sumitomo Chemical India Ltd | 10 | 4.10 | 77.38 | 16.75% | 24.48 |
| Bharat Rasayan Ltd | 10 | 371.03 | 26.87 | 27.94% | 1327.73 |
| Punjab Chemicals and Crop Protection Ltd | 10 | 8.77 | 95.10 | 11.00% | 79.72 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 23rd February 2021 |
| Issue Closes on:. | 25th February 2021 |
| Issue Price | Rs.626 – 627 |
| Face Value | Rs.10 |
| Minimum Lot | 23 Shares |
| Minimum Investment | Rs.14,421 |
| Issue Constitutes | 24.92% |
| Issue Size | Rs.625 cr ($84 million) |
| Market Cap | Rs. 2508 cr ($339 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 90,15,000 |
| Equity Shares Offered (Fresh) | 9,56,937 |
| Total Equity Shares Offered (OFS + Fresh) | 3,90,56,530 |
| Equity Shares Prior to the Issue | 3,90,56,530 |
| Equity Shares after the Issue | 4,00,13,467 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | On or before 2nd March 2021 |
| Initiation of Refunds | On or before 3rd March 2021 |
| Credit of Equity Shares: | On or before 4th March 2021 |
| Listing Date: | On or before 5th March 2021 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 05:00 PM) | Shares Offered | 23rd Feb | 24th Feb | 25th Feb |
|---|---|---|---|---|
| QIB | 19,95,448 | 0.00 | 1.01 | 67.45 |
| NII | 14,95,791 | 0.09 | 0.86 | 271.15 |
| Retail | 34,90,178 | 1.65 | 4.53 | 11.84 |
| Employee | ———- | —– | —– | —- |
| TOTAL | 69,81,417 | 0.84 | 2.74 | 83.29 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 25.03 | 25.04 | 17.39% | 97.62 |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/AllotmentBSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Heranba Industries Limited 101 / 102, Kanchanganga, Factory Lane, Borivali – West, Mumbai – 400 092, Maharastra, India. Tel No.: +91 22 2898 7912 E-mail: compliance@heranba.com Website: www.heranba.co.in |
| IPO Registrar Info: |
|---|
| Bigshare Services Private Limited 1st floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makwana Road, Marol, Andheri (East), Mumbai- 400 059, Maharashtra, India Tel. No.: +91 22 6263 8200 Email:ipo@bigshareonline.com Website: www.bigshareonline.com |
