Heranba Industries Listing: Heramba Industries is getting the benefit of the boom in the stock market. Heramba Industries’ share premium has increased again in the gray market. The company’s shares are trading at a premium of Rs 250-255 in the gray market, which is 40 per cent of the issue price. Expert says that the price band that the company has offered for the shares in the IPO is attractive compared to the Pierce companies. In such a situation, the share of Heramba Industries can be listed at a premium in the market boom. The stock of Heramba Industries is to be listed on the stock market on 5 March.
Premium increases in gray market
Explain how the listing of a stock from the gray market will indicate. The premium of the issue was Rs 200 per share at the time of the IPO opening. At the same time, it had slipped to 100 rupees in the fall of the market. Now the premium in the gray market has again increased by more than 40 percent. Heramba Industries, a manufacturer of crop protection chemicals, has raised Rs 625 crore 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.
Investors got good response
The IPO of Heranba Industries 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 category 271.15 times.
Rs 60 crore fresh issue
There will be a fresh issue of 60 crores in this IPO. At the same time, an offer for sale of 90.15 lakh shares will be kept by the promoters. The company will use the money received from this issue to meet its working capital requirements. Sadashiv’s Shetty, Raghuram’s Shetty, Babu’s Shetty and Vitthal’s Bhandari are among the promoters of the company. As of February 10, his total stake in the company was 98.85 percent.
What does the company do
Heranba Industries is a Gujarat based agro chemical 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.
What to say about expert
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. In the long term, the stock is also showing good growth with the company.