Agrochemical company Heranba Industries has opened its Rs 625 crore initial public offering (IPO) for subscription with a price band of Rs 626-627 a share. Sadashiv Shetty, Chairman and Executive Director at Heranba Industries, discussed the outlook for the business going forward.

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The company is into the production of agrochemicals and crops. "Pyrethroid is our initial product. It is one of the key insecticides used in crop protection area. There is a significant growth in pyrethroid in domestic as well as global usage,” he said.

"We started off with an intermediate and then expanded and forward integrated into various technical products and eventually into formulations and branded – ready-to-use - for the farmers," he added.

In terms of capacity expansion, he mentioned, "The total size of the IPO is Rs 625 crore, out of that Rs 60 crore will be utilised for the company’s working capital needs."

There are no term loans in the books as of now and the company won't be using IPO proceeds for capital expansion, he shared.

"We don’t need capex fund from the borrowed funds. We don't have any term loans as of now. We have debt for working capital. We have a bank limit of Rs 150 crore but we don't have any debt for our capex," he pointed out.

"We have seen steady growth over the past few years in all the segments. So we have reached a turnover of around Rs 1,000 crore," he said.

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(Edited by : Priyanka Rathi)

First Published:Feb 23, 2021 12:14 PM IST