Heranba Industries Stock Listing: Agrochemical company Heramba Industries has a strong entry in the stock market. On March 5, Heramba Industries shares were listed at Rs 900 on the BSE. This is about 44 percent more than its issue price. In the IPO, the issue price was kept at Rs 627, that is, it got strengthened by Rs 273 and got listed. At the same time, it also strengthened to Rs 945 in trading. Heramba Industries shares in the gray market were trading at a 40 per cent premium to the issue price on Thursday, which was believed to be a good listing in the market. At present, there is some weakness in the stock from the upper levels.
High level of weakness
While the shares of the Herumba industry were listed at Rs 900 on the BSE, it rose nearly 51 per cent from the issue price to Rs 945. Currently, it has now weakened from its upper levels to close to Rs 873. However, it is still trading at a 39 per cent increase from the issue price.
Keep listings gain or for a longer period
Nirali Shah, head- equity research, Samco Securities, says the issue listing is better for GAIN. The company has reduced its debt continuously. The valuation of the company is also attractive compared to Pierce companies. During FY18-FY20, the company has grown at 13 per cent CAGR in revenue. At the same time, PAT has increased by 44 percent CAGR. The company has competition from companies like Rallis India, Bharat Chem.
Brokerage house Angel Broking says that it is expected that in the coming days the company will be able to increase its market share as well as margin. The company’s return ratio is better than Pierce companies. Financial position is strong. The stock is also showing good growth with the company in the long term.
Investors got good response
Heramba Industries, a manufacturer of crop protection chemicals, has raised 625 crores from the IPO. The IPO was opened for investment from 23 February to 25 February. The price band for this IPO was fixed at Rs 626-627 per share. Herumba Industries’ IPO was subscribed 83 times. The company’s IPO received bids for 58,15,01,663 equity shares, while the size of the IPO was 69,81,417 equity shares. The Reserve Porson received 11.84 times the bids in the retail category. While QIB Porson received bids 67.45 times and in NII categoty 271.15 times.
What does the company do?
Heranba Industries is a Gujarat based agrochemical company that manufactures crop protection chemicals such as insecticides, fungicides, herbicides. The company is the leading domestic producer of synthetic pyrethroids. The company’s products are used in many countries. The company exports its products to more than 60 countries in Latin America, CES, Middle East, Africa, Asia and Southeast Asia. The company’s network has more than 9400 dealers across the country. The company also has 21 storage centers.