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  • Writer's pictureRahul Jain

Should you Invest in Heranba Industries IPO? Let's check it out.


It's been an IPO festive season since the lockdown. We've seen a lot of good IPO's which gave good returns, some in short-run and some are doing well even now. And now we got an upcoming IPO for Heranba Industries which opens around next week on 23rd Feb 2021 and closes on 25th Feb 2021. The company aims to raise around ₹ 625 crores. Investors can invest at a bid price of ₹627 per share and a single lot will be for ₹ 14,421/- consisting of 23 shares. The post-issue promoter's holding will be around 74.1%.


About the Company:


Heranba Industries is a leading Agrochemical company in India that is engaged in the manufacturing of chemicals that help to improve crop productivity & protect them. It is located in Vapi, Gujarat. They are engaged in manufacturing different types of Insecticides, Fungicides & Herbicides. It is one of the largest manufacturers of Synthetic Pyrethroids across the world. Its been awarded by the International Crop science conference & Exhibition, PMFAI in Goa for its outstanding performance in the export business.


Fundamentals of the Company:


The company has made a Net profit of ₹97.74 crores in the FY 2019-20, ₹75.40 crores in the FY 2018-19, ₹46.93 crores during the FY 2017-18 & ₹19.77 crores during the FY 2016-17. There is a significant growth in the profits & revenue of the Company during the past four years and it is expected to grow further. The PE ratio stands at 25% which is the lowest when compared to Industry PE. So there is definitely a scope for a rise in price as it has a strong Return on equity when compared to industry figures.


Should you Invest?

"Meri taraf se bohat badi haan hai"

Yes, it's a good IPO considering the valuation & Company's growth. The Company is good for the long run as well. So it's really up to the investor's risk potential. One can hold it for long run or exit on the day of listing & come back later when the frenzy is over.


Expected Premium?


Considering the factors I estimate a listing at a premium of atleast 35-50%. I do see this Company crossing the ₹1000 mark within a year.



Disclaimer: All investment strategies & investments involve risk of loss. Nothing contained in this article should be construed as investment advice. These are personal views and for educational purposes only. It is not a solicitation of an offer to buy or sell any securities.






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