IPO News

Heranba Industries’ grey market premium surges in a week

After last week’s drubbing, the primary market has rebounded as demand for about-to-be-listed shares also grew in the grey market.

This has lifted the premium of Heranba Industries to more than double of last week’s level.

The listing of crop protection chemical manufacturer Heranba Industries is likely to happen on March 5th.

Moreover, the IPO grey market premium of Heranba Industries climbed up to 38 percent within the span of a week.

It accounts for 41 per cent premium over the issue price as it’s GMP stood at Rs 255 on Tuesday.

Before the bidding for the initial public offer began, the premium stood around Rs 200.

However, the grey market premium of the agrochemical company tends to reflect indicative listing gains.

The Gujarat-based company had fixed the IPO price band in the Rs 626-627 range.

Further, the company’s IPO reported strong subscription of 83.29 times during February 23-25.

This is due to subscription of reserved portion of non-institutional investors 271.15 times whereas qualified institutional buyers 67.45 times.

Meanwhile, the portion set aside for retail investors witnessed subscription of 11.84 times.

The issue as a whole comprised fresh issue of shares worth up to Rs 60 crore.

It includes an offer for sale of up to 9,015,000 equity shares.

Also, the company raised Rs 187.51 crore from anchor investors.

Moving forward, Heranba is one of the leading domestic producers of pyrethroids with a 19.6 per cent market share.

In fact, pyrethroids accounted for 68 per cent of the company’s revenues in FY20.


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