Heranba Industries falls below issue price, hits lowest level since listing thumbnail

Heranba Industries falls below issue price, hits lowest level since listing

Shares of Heranba Industries slipped 3 per cent to hit a new low of Rs 606.55 on the BSE in intra-day trade on Tuesday, falling below its issue price of Rs 627 per share. The stock of agrochemicals company was trading at its lowest level since listing on March 5. It has now corrected 36 per cent from its high of Rs 944.95 touched on its debut day.

Shares of Heranba Industries had made a strong debut on the bourses with the stock listing at Rs 900, a 43.5 per cent premium over its issue price. The initial public offer of the Gujarat-based firm was subscribed 83 times. The institutional investor portion was subscribed 67 times, the wealthy investors’ portion by 271 times and the retail investors’ quota 11 times.

Post listings, the promoters held 74.15 per cent stake in Heranba Industries while individual shareholders held 16.88 per cent. Mutual funds, foreign portfolio investors and financial institutions, including banks, held stakes in the range of 1.3 per cent to 1.77 per cent, the shareholding pattern data shows.

Heranba is a crop protection chemical manufacturer, exporter and marketing company. It recorded revenues of Rs 967.90 crore and a profit after tax (PAT) of Rs 97.75 crore in FY20. The company has three manufacturing plants and over 9,400 dealers. It also exports to more than 60 countries.

The company is one of the leading domestic producers of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permethrin, lambda-cyhalothrin, etc. On March 31, the company announced that capacity addition at its Unit 4 at Vapi, Gujarat and expects to start commercial production by Q3FY22.

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