AHMEDABAD, FEB 16
Organic farming is commercially not viable and also gives less yield. In a country like India, agrochemical usage is on the rise, and organic farming will in no way impact it, said one of the promoters of Heranba Industries.
Speaking to the media in a virtual meet on the company’s IPO, Sadashiv K Shetty, one of the promoters, said, ” Organic farming is commercially not viable and also gives less yield. In a country like India, agrochemical usage is on the rise, and organic farming will in no way impact it. Large number of farmers still prefer to depend on agrochemicals to boost yield and crop protection.”
Incidentally, health-conscious people are tending towards organic produce and it is in demand. To promote organic farming, there are two organic farming universities in Gujarat and Chhattisgarh and the Karnataka Government is mulling to set up the third one in Shivamogga.
According to agri experts, due to the use of chemical fertilizer, the health of the soil is being deteriorated. This has resulted in unhealthy crops. The nutrient value of the soil is lost and this needs to be revived. This has not just caused damage to the consumers, but also farmers’ health.
IPO opens on February 23, price band fixed at Rs 626 – Rs 627
Gujarat-based Heranba Industries Limited on Tuesday announced an Initial Public Offering (IPO) to finance its working capital requirements and general corporate purposes and an Offer for Sale (OFS) of up to 90,15,000 equity shares.
The IPO is for Rs. 6252.40 million (at the top end of the price band) of face value of Rs. 10 each for cash at a premium offered through a book-building route at a price-band of Rs. 626 to Rs. 627 per equity share.
The Book Running Lead Managers to the IPO are Emkay Global Financial Services Limited and Batlivala & Karani Securities India Private Limited. Registrar to the Offer is Bigshare Services Private Limited. The IPO opens for public subscription on 23rd February 2021 and close on 25th February 2021 with subscription for Anchor Investors opening on 22nd February 2021. The shares will be listed on NSE and BSE.
Link for the RHP: https://www.sebi.gov.in/filings/public-issues/feb-2021/heranba-industries-limited_49129.html
Heranba Industries Limited is a crop protection chemicals manufacturer, exporter, and marketing company. Heranba Industries Limited has three manufacturing plants in and around Vapi in Gujarat and a Corporate office in Mumbai. It has over 9400 dealers/distributors across 16 states and 1 Union Territory in India and also exports to over 60 countries across the Middle East, CIS, Asia, South East Asia, and Africa. In revenue terms, the exports constituted over 41% of sales.
Heranba Industries Limited present in the entire product value chain of the agrochemical industry i.e. Intermediates, Technicals, and Formulations. It operates in five business verticals of Domestic Institutional Sales of Technicals, Technicals Exports, Branded Formulations, Formulations Exports, and Public Health products.
The Company holds registrations of 18 Technicals and 169 Formulations for manufacture and sale in India, 103 Technicals and Formulations for exports. It currently has applications pending for 14 Technicals & Formulations for manufacture for sale in India and 7 Technicals & Formulations for the export markets.
During the past three financial years of 2019-20, 2018-19, and 2017-18, the company has clocked revenues of Rs. 9679.06 million, Rs. 10,118.38 million and Rs. 7504.10 million respectively and Profit After Tax of Rs. 977.50 million, Rs. 754.02 million and Rs. 468.76 million respectively. For the six months ended September 30, 2020, Heranba Industries Limited had revenues of Rs. 6183.44 million and Profits After Tax of Rs 663.11 million, a growth of 23.26% and 24.54% respectively from the corresponding period of the previous year.
Indian market itself is likely to expand due to a low per capita consumption of agrochemicals and increasing food demand, Increasing demand for horticulture and floriculture, government budgetary & policy support to agriculture, etc.
