The public issue of Gujarat-based Heranba Industries, a crop protection chemicals manufacturer, received a warm response considering its high return ratios, dominance in the pyrethroids segment and a strong balance sheet with negligible long-term debt.
The offer had been subscribed 83.29 times by afternoon on February 25, the final day of bidding, as it received bids for 58.15 crore equity shares against an offer size of 69.81 lakh equity shares, the subscription data available on the exchanges shows.
The non-institutional investors were at the forefront, with their reserved portion subscribed 271.15 times and that of qualified institutional buyers 67.45 times. Retail investors had bid 11.84 times more against the portion set aside for them.
Heranba Industries aims to raise Rs 625.2 crore through the public issue, which comprises a fresh issue of Rs 60 crore and an offer for sale of Rs 565.2 crore by promoters. The company will use fresh issue proceeds for its working capital requirements, while the offer for sale money will go to promoters.
The shareholding of promoters, after the public issue, will be reduced to 74 per cent from 98.8 per cent.
The company manufactures intermediates, technicals and formulations and is one of the leading domestic producers of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permitherin, and lambda cyhalothrin, among others, with a 19.5 per cent market share. Its range includes insecticides, herbicides, fungicides and public health products for pest control.
Prior to the public offer, the anchor investors’ portion was open for subscription on Monday where Heranba Industries raised Rs 187.51 crore from 18 anchor investors, data from the stock exchanges added.
Emkay Global Financial Services and Batlivala & Karani Securities India are the book running lead managers to the IPO while Bigshare Services is the registrar of the issue.