NEW DELHI: Heranba Industries shares made a strong debut on Friday, in an otherwise weak day for the secondary market, as the scrip got listed at Rs 900, a 43.54 per cent premium over its issue price of Rs 627.
It climbed 30 per cent over the issue price to Rs 812.25 on the first day of trading. However, the stock closed about 10 per cent lower than the listing price.
Heranba is one of the leading domestic producers of pyrethroids with a 19.6 per cent market share. Pyrethroids accounted for 68 per cent of the company s revenues in FY20.
The Rs 625 crore IPO, shares under which were sold from February 23 to February 25, was subscribed 83.29 times, with the quota for qualified institutional investors getting 67.45 times subscription, and the retail quota attracting 11.84 times subscription. The HNI quota was subscribed a whopping 271.15 times.
The Rs 625 crore issue was subscribed 83.29 times, with the quota for qualified institutional investors seeing bids for 67.45 times the quota limit and the retail quota 11.84 times the limit. The HNI quota saw 271.15 times subscription.
Heranba Industries will finalise the share allotment of its Rs 625-crore initial public offer (IPO) on Tuesday. The IPO, which was open for bidding for three days from February 23 to 25. Heranba Industries is Gujarat-based crop protection chemicals manufacturer.
NEW DELHI: Heranba Industries Rs 625 crore IPO was subscribed a staggering 83.3 times of its issue size on the final day of the bidding process.
By 5:00 pm, the issue had received bids for 58,15,01,663 shares as against the total issue size of 69,81,417 shares.
The subscription was led qualified institutional buyers, whose alloted shares were subscribed 67.4 times at the close of the bidding process. The initial public offer also saw good interest from retail investors as their quota was subscribed 11.84 times.
As Prabhudas Lilladher noted, the IPO is a proxy play on the Indian agrochemical growth story.
Peer Rallis India trades at 16.3 times FY23 EPS of Rs 16.10 while Astec Lifesciences trades at 18.7 times FY23 consensus EPS of Rs 56.4. At the price band of Rs 626-627, Heranba is seeking valuations of 17.5 times FY23 EPS of Rs 35.80, which is the median valuation of comparable peers, Prabhudas Lilladher said.