The initial public offering (IPO) of Gujarat-based agrochemicals company Heranba Industries, which opened on Tuesday, was nearly six times subscribed as of afternoon today.
Heranba has fixed a price band of ₹626-627 per share. It is a crop protection chemical manufacturer, exporter and marketing company. The issue closes today.
The company has a strong 19.5 per cent market share in the pyrethroids market and exports to more than 60 countries. It also has negligible long-term debt. Pyrethroids find use in significant applications across pest protection, environmental health and crop care as well as animal health.
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 (QIBs) 67.45 times. Retail investors had bid 11.84 times more against the portion reserved 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 needs, 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.
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.