Hemani Industries IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHP
Last Updated Date: Nov 17, 2022Hemani Industries is a renowned manufacturer of agrochemicals and specialty chemicals. The company has been in operations for decades and is among the largest global producers of some chemicals.
The agrochemical manufacturer is upcoming with an Initial Public Offering (IPO) of about Rs. 2000 crore. The Hemani Industries IPO will comprise a Fresh Issue and an Offer for Sale.
In the Hemani Industries IPO Review, we have covered IPO price, IPO size, subscription and allotment status, IPO GMP, etc.
| Face Value | Rs 5 |
| Price Band | Not Disclosed |
| Listing At | BSE, NSE |
| Min. Order Quantity | Not Disclosed |
| Listing Date | Not Disclosed |
| Offer for Sale | Rs.1500 Crore |
| Fresh Issue | Rs.500 Crore |
| IPO Size | Rs.2000 Crore |
| Tick Size | 1 |
Hemani Industries IPO Overview
Hemani Industries IPO is going to be a Rs. 2000 crore IPO consisting of fresh issue of equity shares aggregating up to Rs.500 crore and offer for sale of equity shares aggregating up to Rs. 1500 crore.
The IPO is proposed for attaining multiple objectives, including retiring outstanding loans, expansion, and funding capital requirements of the company and its subsidiary, HCCPL.
The company might also consider a pre-IPO placement for up to R. 100 crore, and where such placement is successful, the IPO size will be reduced accordingly.
Hemani Industries IPO Important Dates
| Events | Date |
| IPO Opening Date | Not Disclosed |
| IPO Closing Date | Not Disclosed |
| Basis of Allotment Finalization | Not Disclosed |
| Refunds Initiation | Not Disclosed |
| Credit of Shares to Demat Account | Not Disclosed |
| Share Listing Date | Not Disclosed |
Hemani Industries has filed the DRHP with SEBI to seek its approval. Every entity willing to launch its shares in the market is mandatorily required to adhere to SEBI regulations.
Hemani Industries IPO Date will be intimated soon after the IPO is approved.
Various factors influence an IPO Date. As the company wants to secure the success of its IPO, they take into consideration every driving influence.
Hemani Industries IPO Price, Size, Share Offerings
| Face Value | Rs.5 |
| Price Band | Not Disclosed |
| Offer for Sale | Rs.1500 Crore |
| Fresh Issue | Rs.500 Crore |
| IPO Size | Rs.2000 Crore |
Hemani Industries IPO Size and Hemani Industries IPO Price will be determined by the company and selling shareholders in consultation with the Book Running Lead Managers.
The share offerings of the IPO include a Fresh share issue and an Offer for Sale by Promoters of the company.
The Promoters Jayesh Mohan Dama, Mohan Sunderji Dama, and Minal Mohan Dama collectively hold the company’s entire shareholding.
All three promoters will be offering shares worth Rs. 500 crore each in the share sale.
Hemani Industries IPO Grey Market Premium
| Date | GMP (Rs.) | Kostak Rate (Rs.) | Subject to Sauda (Rs.) |
| Not Trading in Grey Market yet | |||
Another indispensable element of an IPO is Grey Market Premium. Grey Market Premium is a price at which the shares are traded in the Grey Market. It is an indicator of the price the shares will get listed on the stock exchange.
This market is unofficial but bears a strong influence on the main market. The trading in this market takes place before the listing of shares.
Hemani Industries IPO GMP will help investors bid on the company’s shares.
Hemani Industries IPO Subscription Status
| Day / Date | QIB | NII | RII | Total Subscription |
| 1st Day – | ||||
| 2nd Day – | ||||
| 3rd Day – | ||||
| Shares Offered or Net Issue |
In between the IPO opening and closing dates, investors place their bids for the allotment of shares. Investing in the IPO for the allotment of shares is called a subscription.
Hemani Industries IPO Subscription will open after the preliminary paper of the IPO is approved by the capital market regulator. An IPO subscription is usually open for three days.
Hemani Industries IPO Allotment Status
Allotment of shares is when the shares are credited in the Demat accounts of successful bidders. Hemani Industries IPO allotment will take place after the company receives all applications for the allotment and the IPO is completed.
Hemani Industries IPO Live Performance
To know more about the Hemani Industries IPO Performance, check here. The latest Hemani Industries IPO Price will be updated here.
Subscribe to Hemani Industries IPO – Open Free Demat Account Now!
Hemani Industries – Company Review
The cornerstone of Hemani Industries was set in 1994 in the form of a private limited company in Mumbai as, Hemani Intermediates Private Limited.
The company has come a long way ever since. In business, it converted its status from a private company to a public company in March 2011.
Also, in the same year, the company’s name was changed from Hemani Intermediates Limited to Hemani Industries Limited.
Hemani Industries is a leading participant in agrochemical and specialty chemical manufacturing. In 2021, it emerged as a leading player in the Indian market pyrethroid (a type of insecticide) market.
Not just this, it was also the largest global producer of pesticide intermediate Meta phenoxy benzaldehyde (MPBD) and cypermethrin in 2020.
Products or Services
Hemani Industries have a widely spread business. The products of Hemani Industries are employed for crop protection in insecticides, herbicides, and fungicides. They are also used for wood protection, veterinary, household, and public health applications.
Hemani Industries also undertakes contract research and manufacturing services and contract manufacturing for various domestic and multinational companies in the agrochemical and specialty chemicals areas.
Some of its prestigious customers are Jiangsu Yangnong Chemical Co., Shandong Rainbow Agrosciences Co. Ltd, Arysta LifeScience Benelux SRPL, Alchemie Overseas, Sharda Cropchem, Tagros Chemicals India, Bayer Vapi, UPL, and Dhanuka Agritech.
Promoters and Holding
The promoters of Hemani Industries Limited are:
- Jayesh Mohan Dama
- Mohan Sunderji Dama
- Minal Mohan Dama
The management of the company comprises:
- Sameer Ashok Paingankar in the position of Chairman and Independent Director
- Mohan Sunderji Dama, in the position of Managing Director
- Jayesh Mohan Dama in the position of Joint Managing Director
- Dinanath Ramayan Rai, in the position of Executive Director
- Ravi Sunderarajan, in the position of Independent Director
- Avani Rajesh Umatt in the position of Independent Director
Is Hemani Industries good for Investment?
Hemani Industries has been operating predominantly in the agrochemical and specialty chemical industry for over two decades. It is among the largest global producer of some chemicals by volume.
It caters to diversified demands. The operations of Hemani Industries have spread not only to India, but it has an established foot in the international market too, including some of the high-growth regions such as the US, Latin America, Asia-Pacific, Australia, Russia, and Africa. Till Financial Year 2021, its business reached 60 countries.
Hemani Industries Financial Statements
| Amount (in INR & Million) | |||||
| 30-Sept-21 | 30-Sept-20 | Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Assets | 12608.56 | 8129.13 | 9961.79 | 8488.62 | 6584.68 |
| Revenue | 7133.61 | 4722.67 | 11483.06 | 10198.28 | 8949.78 |
| Expense | 5611.48 | 3777.65 | 9155.30 | 8345.23 | 7639.87 |
| Profit After Tax | 1143.96 | 704.87 | 1703.01 | 1356.32 | 759.77 |
Hemani Industries is dominating the market with its products and ever-expanding operations. The company has made impressive growth over the years.
It showed a generous 65% year-on-year growth in its profit in the six months of 2021 compared to the previous year.
The total revenue for the period was 7133.61 million, and the profit before tax was 1522.13 million.
| Earnings per Equity Share (in Million) | |||||
| 30-Sept-21 | 30-Sept-20 | Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Basic & Diluted | 12.70 | 7.83 | 18.91 | 15.06 | 8.26 |
On the other hand, the EPS of Hemani Industries evidenced some ups and downs. As of 30th September 2021. The EPS for 2019, 2020, and 2021 was – Rs. 8.26, Rs. 15.06 and Rs. 18.91 respectively.
Hemani Industries IPO Review
Hemani Industries IPO combines a Fresh Issue and an Offer for Sale. The promoters of the company will be offloading their shares in the IPO.
The selling shareholders will be entitled to the proceeds received by the company from the offer for sale. The company plans to utilize the fresh issue proceeds for the capacity expansion of its operations at its Saykha industrial estate, Gujarat plant.
Also, the company will repay some of its outstanding debts along with funding the capital expenditures of its wholly-owned subsidiary.
All in all, the IPO will strengthen the standing of the company in the long term and help achieve new avenues of success.
Hemani Industries IPO Details
Here are a few more details you need to know before investing in Hemani Industries IPO –
Hemani Industries IPO Issue Object
Hemani Industries has proposed diverse objectives for making the IPO offer and some of the objectives are:
- Funding the capital expenditure requirements for the capacity expansion at Saykha industrial estate (the “Proposed Expansion”);
- Repayment/prepayment of certain borrowings of our Company;
- Investment in our wholly-owned Subsidiary, HCCPL, for the repayment/prepayment of certain borrowings of HCCPL;
- Funding the long-term working capital requirement of our Company; and
- General corporate purposes.
Hemani Industries IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Leading market positions across our major agrochemical and specialty chemical products;
- Global presence in a market with high entry barriers;
- Large customer base with long-lasting relationships;
- Strong R&D capabilities;
- Operational excellence with a focus on quality and vertical integration;
- Robust financial performance; and
- Experienced Promoters and Senior Management.
Quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-21 | 18.81 | 28.34 | 66.39 |
| 31-Mar-20 | 14.82 | 31.25 | – |
| Mar-19 | 8.26 | 25.80 | – |
Hemani Industries IPO Lead Managers
Here are the list of Lead managers –
- JM Financial Limited
- Kotak Mahindra Capital Company Limited
Hemani Industries IPO Registrar to offer
Check out the details of registrar here –
Link Intime India Private Limited
C 101, 247 Park L.B.S. Marg
Vikhroli (West) Mumbai 400 083
Maharashtra, India
Tel: +91 22 4918 6200
E-mail: mumbai@linkintime.co.in
Investor Grievance E-mail: hemani.ipo@linkintime.co.in
Website: www.linkintime.co.in
Contact Person: Shanti Gopalkrishnan
SEBI Registration Number: INR000004058
Hemani Industries IPO – Other Details
- Statutory Auditor – KPB & Associates
- Legal Counsel to the Company – Cyril Amarchand Mangaldas
- Bankers to the Company – HDFC Bank Limited, Citi Bank N.A.
Hemani Industries IPO – Conclusion
The Hemani Industries IPO is undoubtedly an opportunity packed with unlimited possibilities.
It has been in operation for decades and has created a specialized market, and has a customer base that includes significant entities contributing highly to its growth and expansion. Therefore, investors can consider investing in the IPO.
To Subscribe to Hemani Industries IPO – Open Demat Account Now!
Hemani Industries IPO Review FAQs
Check out the FAQs on Hemani Industries IPO –
What is the Issue Size of Hemani Industries IPO?
The Company is making an initial public offer of NA equity shares. They vividly portray the aspects of the issue in this article.
You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of Hemani Industries IPO?
The price band for this particular IPO ranges between NA. As far as the face value of the share is of concern, it is Rs.5 per share.
What is the Hemani Industries IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on NA, while the closing date is set at NA.
What is the Hemani Industries IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO.
Basis of Allotment finalization is on NA, refund initiation is on NA, credit of shares is on NA, and share listing date is on NA.
What is the Hemani Industries IPO Listing Date?
Shares of this company shall be listed in the exchanges NA. The date, when the listing would be done, is stagnant on NA.
Who is the Registrar of Hemani Industries IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. Link Intime India Private Limited. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of Hemani Industries IPO?
Here are the promoters of this IPO – JAYESH MOHAN DAMA, MOHAN SUNDERJI DAMA AND MINAL MOHAN DAMA . You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of Hemani Industries IPO?
They have obtained the GMP of this IPO and it is NA. Further insights of Kostak rate and subject to sauda or SS are as well included in this report.
Is Hemani Industries IPO good for Investment?
They have further provided the financial status of the company in this article, from the past few years.
You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of Hemani Industries Company?
They have the information of company financials, and according to that, they have the figures from the last few years to provide.
PAT for the financial year 2021 in Million is 1703.01, 2020 is 1356.32, 2019 is 759.77. PAT from Sept 2021 is 1143.96.
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