The Rs 625-crore initial public offering (IPO) of Gujarat-based agrochemicals company Heranba Industries has been subscribed 1.49 times on February 24 — the second day of bidding.
Retail investors put in bids 2.8 times against their reserved portion, while the portion set aside for non-institutional investors has been subscribed 42 per cent, however qualified institutional buyers (QIBs) have not bid yet.
The issue will remain open for subscription through February 25.
Investors who wish to subscribe to Heranba Industries IPO can bid in a lot of 23 equity shares and multiples thereafter.
Heranba Industries shares are likely to be listed on BSE and NSE on March 5, 2021.
All applicants also must remember that the cut-off time for UPI mandate confirmation is Friday, February 26, 2021, up to 12:00 pm.
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.
The offer consists of a fresh issue of Rs 60 crore and an offer for sale of Rs 565.2 crore shares by promoters which indicated that 90 per cent of the IPO money will go to promoters. Of the total issue size, the company already gathered Rs 187.5 crore from anchor investors on February 22, hence the offered size has been reduced to 69.81 lakh shares.
The price band for the issue has been fixed at Rs 626-627 per share.
The company is expected to enjoy premium post listing because of its dominance in pyrethroids market with established brands and considering the current secondary market conditions. The Covid-19 pandemic impact was minimal on the company as it deals with agro products and the Union government gave relaxation to agro products during lockdown.
The money raised from the IPO will fund Heranba's working capital requirements.