Shares of Heranba Industries were listed with a hefty premium of 43.54 percent at Rs 900 on the National Stock Exchange against the issue price of Rs 627 per share. The stock got listed at Rs 900 apiece on the BSE.

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The IPO of agrichemicals manufacturer Heranba Industries, which was open from February 23-25 was subscribed 83.3 times at a price band of Rs 626-627 per share. The quota for qualified institutional investors was subscribed 67.45 times and the retail portion 11.84 times. The HNI quota saw 271.15 times subscription.

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Heranba Industries IPO subscribed 83.3 times on last day

The Heranba Industries' IPO comprised an offer-for-sale (OFS) of up to 90.15 lakh equity shares and a fresh issue of Rs 60 crore shares. The net fresh issue proceeds will be utilised for working capital requirements.

Heranba Industries is a crop protection chemical manufacturer and is one of the leading domestic producers of synthetic pyrethroids like cypermethrin, deltamethrin, lambda-cyhalothrin etc.

The company has a strong 19.5 percent market share in the pyrethroids market and caters to over 60 countries. As of FY20, 49 percent of its revenues came from the overseas markets which enabled Heranba to sail through the ups and downs locally.

Brokerages had assigned a ‘Subscribe’ rating to the issue for listing gains and also for the long term, given the company's dominant position in pyrethroids market, better return ratios than peers, reasonable valuations to peers, increasing export opportunity and strong balance sheet with low long term debt.

First Published:Mar 5, 2021 10:00 AM IST