Heranba Industries Limited
Mainboard₹625 Cr issue
+43.54%
Listing gain over issue price
Issue size
₹625 Cr
1 lot at cut-off
₹14,421
Lot size
23shares
Open
23 Feb 2021
Close
25 Feb 2021
Allotment
02 Mar 2021
Listing
05 Mar 2021
Listing performance
Issue price
₹627
Listed at
₹900
Listing-day close
₹812.25
Latest price
₹147.26
Close on 23 Oct 2026
Listing gain
+43.54%
Return since issue
-76.51%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 23 Feb 2021 – 25 Feb 2021
- Listing date
- 05 Mar 2021
- Face value
- ₹10 per share
- Issue price
- ₹627 per share
- Lot size
- 23 shares
- Total issue size
- ₹625 Cr
- Market cap at offer price
- ₹3,049 Cr
- Promoter holding
- 98.85% → 74.15% pre-issue → post-issue
- ISIN
- INE694N01015
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Batlivala & Karani Securities India Pvt.Ltd.
- Registered office
- Plot No.1504 / 1505 / 1506/1 GIDC, Phase-III, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 29,90,520 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 23 shares per lot, in multiples, at ₹627
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 23 | ₹14,421 |
| Retail (max) | 13 | 299 | ₹1,87,473 |
| S-HNI (min) | 14 | 322 | ₹2,01,894 |
| S-HNI (max) | 69 | 1,587 | ₹9,95,049 |
| B-HNI (min) | 70 | 1,610 | ₹10,09,470 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
29,90,520
Anchor portion
₹188 Cr
at ₹627 per share
Valuation and performance
Valuation at offer price
₹627 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹3,049 Cr |
About Heranba Industries Limited
Heranba Industries Limited, incorporated in 1992 and converted to a public company in 1996, is a crop protection chemical manufacturer, exporter and marketing company based in Vapi, Gujarat with corporate and administration offices in Mumbai. The company manufactures Intermediates, Technicals and Formulations, and is one of the leading domestic producers of synthetic pyrethroids including cypermethrin, alphacypermethrin, deltamethrin, permitherin, and lambda cyhalothrin. Its pesticide range includes insecticides, herbicides, fungicides and public health products for pest control, serving both domestic and international markets through manufacturing at three units in Gujarat.
Company Analysis
from RHPHeranba Industries Limited is a crop protection chemical manufacturer specializing in synthetic pyrethroids and agrochemical formulations, operating in the agrochemicals industry.
Heranba Industries Limited, incorporated in 1992 and converted to a public company in 1996, is a crop protection chemical manufacturer, exporter and marketing company based in Vapi, Gujarat with corporate and administration offices in Mumbai. The company manufactures Intermediates, Technicals and Formulations, and is one of the leading domestic producers of synthetic pyrethroids including cypermethrin, alphacypermethrin, deltamethrin, permitherin, and lambda cyhalothrin. Its pesticide range includes insecticides, herbicides, fungicides and public health products for pest control, serving both domestic and international markets through manufacturing at three units in Gujarat.
agrochemicalscrop protection chemicalspesticide manufacturing
Objects of the Issue
- To fund working capital requirements ₹500 million p.22
- General corporate purposes p.22
- To fund working capital requirements ₹500 million p.90
- General corporate purposes p.92
- Fresh Issue for general corporate purposes ₹600 million p.327
Issue Structure
- Total Issue
- Up to [●] Equity Shares, aggregating up to ₹[●] million
- Fresh Issue
- Up to [●] Equity Shares, aggregating up to ₹600 million
- Offer for Sale
- Up to 90,15,000 Equity Shares, aggregating up to ₹[●] million
- Price Band
- [●] (to be determined)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10.00 per Equity Share
Business Model
The company manufactures and sells crop protection chemicals in three forms: Intermediates (raw chemical materials), Technicals (pure pesticide forms), and Formulations (finished products). It operates through three manufacturing units in Gujarat and sells domestically through direct channels and internationally through distribution partners. Revenue is generated from the sale of pesticides and related agrochemical products.
Business Segments
Inert materials, wetting agents, dispersing agents, emulsifying agents, stabilizers and other substances added to technical grade pesticides to make formulations
Purest form of pesticide produced for commercial use prior to being formulated
Manufacture of preparation containing one or more technical grade pesticide in definite proportion along with other specified ingredients for branded pesticide products
Pesticides and crop protection products sold to farmers in India through dealer network, seasonal with higher demand during monsoon (Kharif) season June-November
Chemical intermediates and technical-grade agrochemicals manufactured for international customers and contract manufacturing purposes
Manufacturing and selling of Technicals in bulk to domestic companies. The company manufactures and supplies Technicals to leading domestic and multinational agrochemical companies operating in India which are used by them for manufacturing their own products.
Exports of Technicals in bulk to customers outside India. The company exports technicals to various agrochemical companies across the world and has received approvals for 103 technicals and formulations for export purposes.
Manufacturing and selling of Formulations under own brands through distribution network in India. The company manufactures and sells various Formulations of Insecticides, Fungicides, Herbicides and Public Health products under own brands through a distribution network of over 9,400 dealers across 16 states and 1 union territory.
Export of Formulations in bulk and customer specified packaging outside India. Sales of Formulations in international markets is generally undertaken by way of tie-ups with International Distribution Partners who import formulations and sell them under their local brands.
Manufacturing and selling of general insect control chemicals by participating in public health tenders issued by governmental authorities and selling to pest management companies. Products include general insect control, termiticide, larvicide, indoor residual spray, rodenticide and cockroach gels.
Manufacturing and selling of Technicals in bulk to domestic companies
Exports of Technicals in bulk to customers outside India
Manufacturing and selling of Formulations under our own brands through our own distribution network in India
Export of Formulations in bulk and customer specified packaging outside India
Manufacturing and selling of general insect control chemicals by participating in public health tenders issued by governmental authorities and selling to pest management companies
Manufacturing and selling of Technicals in bulk to domestic companies
Exports of Technicals in bulk to customers outside India
Manufacturing and selling of Formulations under own brands through own distribution network in India
Export of Formulations in bulk and customer specified packaging outside India
Manufacturing and selling of general insect control chemicals by participating in public health tenders and selling to pest management companies
Manufacture and sale of insecticide formulations for agricultural use
Manufacture and sale of specialty chemicals used in agricultural and industrial applications
SWOT Analysis
Strengths
- • Leading domestic producer of synthetic pyrethroids(p.22)
- • Diversified product portfolio across intermediates, technicals and formulations(p.22)
- • Established brand presence with multiple registered trademarks(p.42)
- • Improved profitability with PAT growth(p.23)
- • Improved net worth and financial position(p.23)
- • Established branded formulations business with agricultural customer base(p.47)
- • Significant export presence with operations in over 60 countries(p.52)
- • Long track record of dividend payments to shareholders(p.56)
- • Established manufacturing facilities with production capacity(p.50)
- • Significant domestic distribution network(p.52)
- • Integrated presence across entire synthetic pyrethroid value chain(p.131)
- • Extensive product registrations enabling global market access(p.132)
- • Strong distribution network across India(p.130)
- • Diversified customer base reduces revenue concentration risk(p.132)
- • Experienced promoters with three decades of industry expertise(p.131)
- • Market leadership position in Indian pyrethroids(p.127)
- • Significant manufacturing capacity with expansion potential(p.131)
- • Leading domestic producer of synthetic pyrethroids(p.167)
- • Diversified product portfolio across multiple pesticide categories(p.167)
- • Established manufacturing and export capabilities(p.167)
- • Multiple revenue streams across business verticals(p.167)
- • Long operational history with consistent growth milestones(p.169)
- • Leading manufacturer of synthetic pyrethroids with diverse product portfolio(p.268)
- • Integrated manufacturing across full value chain from intermediates to formulations(p.268)
- • Strong export presence with 60+ countries and established distribution partnerships(p.269)
- • Extensive domestic distribution network with 9,400+ dealers across 16 states(p.269)
- • Recognized R&D facilities with DSIR accreditation(p.268)
- • Significant manufacturing capacity with 174 reactors across three facilities(p.269)
- • Established market presence with diversified product portfolio in agrochemicals(p.27)
- • Multiple manufacturing facilities providing operational flexibility(p.27)
- • Pan-India distribution network across states and union territories(p.27)
- • Strong financial position with manageable debt levels(p.294)
Weaknesses
- • Heavy reliance on numerous small customers with no long-term supply agreements(p.29)
- • Significant dependence on dependent group company with debt and negative net worth(p.43)
- • Co-borrower liability for group company debt(p.44)
- • History of Company Law and regulatory non-compliances(p.32)
- • Negative cash flows from investing and financing activities in recent periods(p.34)
- • Concentration in manufacturing facilities in single geography(p.5)
- • Geographic concentration of manufacturing facilities in Gujarat(p.50)
- • Underutilized manufacturing capacity(p.52)
- • Dependence on third-party transportation providers(p.52)
- • Lack of long-term contracts with distribution partners(p.52)
- • History of hazardous material incidents at manufacturing facilities(p.49)
- • Promoter personal guarantees on significant borrowings(p.55)
- • Concentration of shareholding in promoter hands(p.55)
- • High reliance on China for raw material imports(p.113)
- • Raw materials comprise significant portion of costs(p.145)
- • Lower capacity utilization at formulations facility(p.155)
- • Concentration in single state (Gujarat) manufacturing operations(p.167)
- • Past environmental compliance violations and production stoppages(p.169)
- • Loss-making group companies with negative net worth(p.203)
- • Group company declared wilful defaulter status(p.198)
- • Personal guarantees by promoters expose company to liquidity risk(p.193)
- • High dependence on raw material costs representing 67-73% of revenue(p.269)
- • No long-term agreements with raw material suppliers creating supply uncertainty(p.269)
- • Exposure to regulatory and litigation risks with disputed tax liabilities(p.254)
- • Significant portion of facility concentrated at Vapi location(p.269)
- • Significant litigation and regulatory violations related to product quality(p.303)
- • Multiple criminal proceedings against the Company for alleged manufacturing of misbranded insecticides(p.298)
- • Environmental violations and regulatory complaints(p.300)
- • Promoter involvement in multiple litigation cases outside the Company(p.312)
- • Multiple compliance violations filed by the Company itself with regulatory authorities(p.302)
Opportunities
- • Use of IPO proceeds for working capital to fund growth(p.22)
- • Expansion into international markets through distribution partnerships(p.5)
- • Growing demand for crop protection chemicals in agrochemical industry(p.22)
- • Expansion of product portfolio into European markets(p.48)
- • Potential for capacity expansion and product line diversification(p.48)
- • Recently incorporated China subsidiary for import-export operations(p.54)
- • Strong growth in India pyrethroids market(p.133)
- • Expansion into highly regulated US and European markets(p.133)
- • Growing consumption of agrochemicals in India(p.109)
- • Export opportunities from Chinese plant shutdowns(p.130)
- • New product development in regulated markets(p.130)
- • Rising demand for crop protection products from growing population(p.108)
- • Expansion of international presence through subsidiary(p.169)
- • Growth in agrochemicals market and public health segment(p.167)
- • Expansion of branded formulations through own distribution(p.167)
- • Capacity addition and new facility development(p.169)
- • Growth in global pyrethroid demand with China's industrial consolidation(p.269)
- • Expansion of formulation portfolio through new product development(p.269)
- • International market expansion through distribution partner registrations(p.269)
- • Growth from expanding generic agrochemical molecule portfolio(p.270)
- • Increased demand for crop protection due to global population growth(p.270)
- • Expansion of distribution network through additional depots(p.27)
- • Capacity utilization and production expansion at existing manufacturing units(p.27)
- • Geographic market penetration in underserved agricultural regions(p.308)
Threats
- • Raw material price volatility and supply risk(p.30)
- • Regulatory product registration requirements and complex approval process(p.31)
- • Risk of product bans due to regulatory action(p.31)
- • Seasonal and weather-dependent demand for agrochemical products(p.42)
- • Dependence on import of raw materials from China with risk of trade restrictions(p.37)
- • Export revenue concentration risk from major markets(p.36)
- • Regulatory sanctions risk from international operations(p.34)
- • COVID-19 pandemic impact on operations and business(p.34)
- • Multiple outstanding litigations and regulatory proceedings(p.27)
- • High sensitivity to monsoon and weather patterns in India(p.47)
- • Volatility in commodity crop prices affecting farmer spending(p.47)
- • Intense competition from multinational and domestic competitors(p.47)
- • Threat from counterfeit and pass-off products(p.48)
- • Risk of pest resistance to pesticide products(p.49)
- • Health and environmental concerns regarding crop protection chemicals(p.48)
- • Competition from biotechnology and genetically modified crops(p.48)
- • Exposure to foreign exchange rate movements(p.53)
- • Dependence on government incentives and regulatory compliance(p.56)
- • Potential impact from COVID-19 and communicable diseases(p.59)
- • Slowdown in Indian economic growth affecting agrochemical demand(p.57)
- • Risks from natural disasters and unfavorable global weather patterns(p.51)
- • Supply chain disruptions from Chinese coronavirus outbreak(p.113)
- • Intense competition in Indian agrochemicals market(p.150)
- • Rapid photodegradation limits pyrethroid effectiveness(p.104)
- • Insect resistance to pyrethroid treatment(p.104)
- • Impact of monsoon variability on agrochemical demand(p.109)
- • Global agrochemicals market growth slower than pyrethroids segment(p.107)
- • Extensive environmental and regulatory compliance requirements(p.163)
- • Stringent hazardous waste management and chemical storage regulations(p.164)
- • Potential closure or prohibition of manufacturing operations by regulatory authorities(p.163)
- • Compliance burden from multiple consumer protection and product safety laws(p.162)
- • Mandatory insurance and liability requirements for hazardous substances(p.164)
- • Seasonal and climatic variations affecting demand(p.270)
- • Raw material price volatility from external market factors(p.269)
- • COVID-19 pandemic impact on operations and supply chains(p.269)
- • Regulatory dependence on CIB&RC registrations for product launches(p.270)
- • Import competition and international regulatory barriers(p.269)
- • Regulatory restrictions and potential ban of specific products(p.297)
- • Increased regulatory scrutiny on agrochemical manufacturing and environmental compliance(p.300)
- • Exposure to credit risk from widespread bad debt and dishonored cheques from distributors(p.301)
- • Dependence on working capital facilities from banks, which remain subject to annual review(p.295)
- • Potential penalties and rating downgrades if production quality targets are not met(p.297)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sadashiv K. Shetty | Promoter | 33.42% | — |
| Raghuram K. Shetty | Promoter | 36.16% | — |
| Sadashiv K. Shetty | Promoter | 33.42% | — |
| Raghuram K. Shetty | Promoter | 36.16% | — |
| Sadashiv K. Shetty | Promoter | — | — |
| Raghuram K. Shetty | Promoter | — | — |
| Sadashiv K. Shetty | Promoter | 33.42% | — |
| Raghuram K. Shetty | Promoter | 36.16% | — |
| Sadashiv Shetty | Promoter/Chairman | 33.42% | — |
| Raghuram Shetty | Promoter/Managing Director | 36.16% | — |
| Sujata Shetty | Promoter | 8.27% | — |
| Vanita Shetty | Promoter | 5.17% | — |
| Sadashiv K. Shetty | Promoter | — | — |
| Raghuram K. Shetty | Promoter | — | — |
| SAMS Industries Limited | Promoter Group | — | — |
| Babu K. Shetty | Promoter Group | — | — |
| Vittala K. Bhandary | Promoter Group | — | — |
| Sadashiv K. Shetty | Promoter/Selling Shareholder | — | — |
| Raghuram K. Shetty | Promoter/Selling Shareholder | — | — |
| SAMS Industries Limited | Selling Shareholder | — | — |
| Babu K. Shetty | Selling Shareholder | — | — |
| Vittala K. Bhandary | Selling Shareholder | — | — |
Leadership
Maheshwar V. Godbole · Chief Financial Officer
Abdul Latif · Company Secretary & Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Heranba Industries Limited IPO FAQs
What is the lot size of Heranba Industries Limited IPO?
The minimum lot size of Heranba Industries Limited IPO is 23 shares. One lot costs ₹14,421 at the cut-off price.
When does Heranba Industries Limited IPO open and close?
Heranba Industries Limited IPO opened for subscription on 23 Feb 2021 and closed on 25 Feb 2021.
What is the listing date of Heranba Industries Limited IPO?
Heranba Industries Limited IPO listed on 05 Mar 2021.