Gujarat-based agrochemical firm Heranba Industries will be entering the primary market next week. Its public issue will open for subscription on February 23 and close on February 25. next week, though the dates are not announced. The company is looking to raise Rs 625 crore from capital markets through the issue which will be a mix of an Offer for Sale (OFS) by existing shareholders and a fresh issue of equity shares.
Investors can bid for the issue in the price band of Rs 626-627 per share. The minimum bid size has been decided at 23 equity shares and multiples thereafter. This would translate into a minimum bid price of Rs 14,421. 50% of the issue will be reserved for Qualified Institutional Buyers (QIB), 15% will be available for Non-Institutional Investors (NII) and the remaining 35% is for Retail investors.
Price band: Rs. 626-627 per share
Minimum bid size: 23 equity shares
Heranba’s IPO includes an OFS by promoters Sadashiv K. Shetty and Raghuram K. Shetty along with the promoters, Babu K. Shetty, Vittala K. Bhandary, and SAMS Industries Limited. The promoters will be selling more than 81.22 lakh equity shares. The fresh issue portion of the IPO will be worth Rs 60 crore. Heranba will only be receiving this portion of the issue amount. The company plans to use the amount to fund working capital requirements and to fund expenditures for general corporate purposes.
Heranba Industries earns 49% of its revenue from exports, whereas 87% of the revenue comes from institutional customers. The company has a diverse customer base with only 20% of the total revenue coming from the top 10 customers. The company exported its products to more than 60 countries in Latin America, CIS, Middle East, Africa, Asia, and South East Asia in the previous fiscal year. The company has also started the process of entering developed markets such as the USA and Europe.