Heranba Industries Ltd, a Gujarat-based agrochemicals company that makes crop protection products, has received regulatory approval to once again float its initial public offering (IPO) after its earlier attempt to go public in 2018-19 failed to materialise.
The Securities and Exchange Board of India (SEBI) issued final observations to Heranba’s proposal last week, a top company executive said.
This takes the number of companies to receive regulatory approval for an IPO so far this year to 24. SEBI had cleared 28 IPO proposals last year, 72 proposals in 2018 and 46 proposals in 2017.
Heranba refiled its draft prospectus in September this year. The IPO comprises a fresh issue of shares worth Rs 60 crore and an offer for sale of shares by the company’s promoters Sadashiv Shetty and Raghuram Shetty as well as other individuals and entities belonging to the promoter group.
The IPO size is estimated at Rs 650-700 crore, the executive said, asking not to be named.
The company had originally filed for its IPO in September 2018. It even received SEBI’s approval in February 2019. However, it failed to launch its IPO owing to unfavourable market conditions and market volatility preceding and following the national elections of 2019.
This time around, Heranba is aiming to float its IPO in the next 25-35 days as it looks to conclude other formalities and regulatory obligations related to its IPO.
Of the total fresh proceeds, the company will utilise Rs 50 crore to meet its working capital requirements. It also plans to use the money for general corporate purposes.
The proceeds from the secondary share sale will go to the selling shareholders.
Emkay Global Financial Services and Batlivala & Karani Securities are merchant bankers arranging the share sale.
Heranba makes crop protection chemical intermediates, technical products and formulations. Its range of pesticides include insecticides, herbicides, fungicides and public health products for pest control.
The company operates through five main verticals – domestic institutional sales of technical products, exports of technical products, manufacturing of branded formulations, exports of branded formulations, and public health by way of making and selling general insect-control chemicals.
The company was incorporated in 1992 and began operations in 1996 by first producing intermediate product cypermethric acid chloride. It has three manufacturing and packaging facilities in and around Vapi, Gujarat, with total manufacturing capacity of 14,024 tonnes per year.
The company exports its products to more than 60 countries in Latin America, West Asia, SouthEast Asia and Commonwealth of Independent States.
|Find this article at: http://news.agropages.com/News/NewsDetail---37345.htm|