All You Need To Know About Heranba Industries Ltd’s IPO

In the agrochemical industry, Heranba Industries was founded in 1994. A better standard of living was eventually introduced through agriculture, which ultimately led to the agricultural revolution. Agriculture is the most primitive means of living that laid the foundation for civilization and civilization eventually led to civilization.

Agrochemicals was another industry that grew with the agricultural industry. Heranba Industries provides innovative agricultural products to farmers that will maximize their farm yields.

As a manufacturer, exporter, and marketing company, Heranba Industries specializes in manufacturing, exporting, and supplying a wide range of products including public health, insecticides, technical, and fungicides. In Gujarat, Heranba Industries Limited is located in Vapi

They are one of the largest domestic producers of synthetic pyrethroids. Pyrethroids are organic compounds made from Pyrethrin, which is a naturally occurring element. Pyrethroids serve three main purposes -

• Agriculture - Insecticides, Pesticides

• Public Health - Mosquito Sprays, Pharmaceuticals

• Animal Health - Cypermethrin

IPO details

In 2021, Heranba held its IPO from 23rd to 25th February, and it was listed on the stock exchange on 5th March.Heranba Industries Ltd's initial public offering price was Rs 627 per equity share and the allotment date of Heranba Industries Ltd IPO was March 2, 2021.

• IPO Opening date: Feb 23, 2021

• IPO Closing date: Feb 25, 2021

• Issue Type: Book Built Issue

• Face Value: Rs.10 per equity share

• IPO Price: Rs.626 to Rs.627 per equity share

• Market Lot: 23 shares

• Minimum Order Quantity: 23 shares

• Listing Place: BSE, NSE

Objectives and Response to the Heranba Industries ltd IPO

The primary objectives of the Heranba Initial Public Offering are:

• For the purpose of meeting the company's working capital requirements.

• For the purpose of meeting the company's working capital requirements.

• For the company to accomplish its general corporate objectives successfully.

Response to the Heranba Industries ltd IPO

On the final day of the Heranba Industries IPO, the Rs.625 crore issue was subscribed 83.3 times.

Heranba Industries Ltd led the subscription spree with qualified institutional buyers.IPO as 67.4 times their allotted shares were subscribed. Retail investors also showed great interest in the IPO, as their allotted quota was subscribed 11.84 times on the last day.

Financial Analysis of Heranba Industries

Based on its five-year and three-year averages, Heranba Industries Ltd's sales for the financial year ending March 2022 have increased, and the same is true for its profit for the fiscal year ending, 2022, which has also increased compared to its three and five-year averages, as this is an important indicator you should consider when deciding on stocks to buy for the long term.

Having lower debt can indicate that a company is financially stable and will grow in the future, but it doesn't guarantee that the stock will become a multi-bagger. Analyzing multiple aspects of a stock can still help you find multibagger stocks.

Although Heranba Industries' return on equity has declined in the last three years, it has also grown significantly in the year ending March 2022.

Future Prospects of Heranba Ltd

Although profit growth hasn't yet exceeded pre-Covid levels, the company has shown tremendous growth since the slump of Covid-19.

According to historical trends, Heranba stock's intrinsic value is Rs.674.42 while its share price today is around Rs.520. Heranba stock's PE ratio is 11.70, which is lower than the industry PE of 29.64, indicating the stock is currently undervalued and will provide multibagger returns in the future. Learn more about other multibagger stocks in 2022.

Nevertheless, the company's growth heavily depends on future industry demands.It is estimated that by 2027, the Indian pesticides market will reach INR 320 billion.

A total of 1,221.1 Cr of revenue was generated by Heranba in the last 3 years, and 1,469.7 Cr was generated by the company for 2022, indicating an upsurge in sales.

Sellers are currently holding onto Heranba Ltd due to its good prospects and undervalued share price, despite its expected price increase in the future.

My name is Anubhav and i write articles on multiple topics. Thanks for showing support.