October 27, 2022
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Hemani Industries IPO Analysis @ Chanakyanipothi.com,
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| Hemani Industries IPO Grey Market News | ||
| Updated on (?) | ||
| Observation: | ||
| Fix | Subject to | |
| GMP Rs. | Application | Application |
| Rs | Rs. | |
| Retail | ||
| Small HNI (2L+) | ||
| Big HNI (10L+) | ||
| Subscription Trend | On 24.09.2022 | at 5.00 pm |
| Shares | Subscribed | |
| QIB | ||
| NII 10L+ | ||
| Retail 2L+ | ||
| Retail | ||
| Employees | ||
| Total |
Hemani Industries IPO Promoters
JAYESH MOHAN DAMA, MOHAN SUNDERJI DAMA AND MINAL MOHAN DAMA
Hemani Industries IPO Company Details
Hemani Industries is an Indian chemical company focused on the manufacturing and marketing of a range of agrochemicals and specialty chemicals. The end uses of its products include crop protection (insecticides, herbicides and fungicides) as well as products used for wood protection, veterinary, household and public health applications. It is highly backward integrated with most of its raw materials being produced in-house. In addition to manufacture and sale of its products (as Intermediates, Technical and Formulations), it also engages in contract research and manufacturing services (“CRAMS”) and contract manufacturing for multi-national and domestic companies in the agrochemical and specialty
chemicals areas.
Hemani Industries has a presence across the entire value chain, Technicals, Formulations and Intermediates. According to Frost & Sullivan, it is a leading player in the Indian pyrethroid market in Fiscal 2022. In Intermediates, in CY 2020, it was the largest global producer by volume of Meta Phenoxy Benzaldehyde (“MPBD”) and the second largest producer by volume of Cypermethrin Acid Chloride (“CMAC”). In Technicals, in CY2020, it was the largest global producer by volume of Cypermethrin Technical, the second largest global producer by volume of Alpha Cypermethrin, the third largest global producer by volume of Permethrin Technical and the third largest manufacturer by volume of Dicamba in India.
Hemani Industries is predominantly focused on exports. In Fiscal 2021, it exported its products to 60 countries. It carries out its operations in high growth regions such as the Asia Pacific, Latin America, the United States, Russia, Africa and Australia. It is one of the leading exporters of MPBD to China as Chinese producers lack MPBD domestic production (MPBD is the key starting material for Lambda).
To ensure continuing international growth and expansion into new markets and customers, it obtains and maintains numerous international product registrations across geographies. It is in the process of entering highly regulated markets.
Its product portfolio was sold to over 1,700 total customers during the last ten years. It added 166 new customers and served 665 total customers during the nine-month ended December 31, 2021, added 207 new customers and served 766 total customers in Fiscal 2021, added 207 new customers and served 698 total customers in Fiscal 2020 and added 347 new customers and served 633 total customers in Fiscal 2019. Select examples of its major customers include Alchemie Overseas Ltd., Arysta LifeScience Benelux SRPL, Bayer Vapi Private Limited, Dhanuka Agritech Limited, Jiangsu Yangnong Chemical Co., Ltd., Shandong Rainbow Agrosciences Co. Ltd, Sharda Cropchem Limited, Tagros Chemicals India Pvt. Ltd. and UPL Limited. It is also engaged in CRAMS and contract manufacturing for large international and domestic chemical companies in agrochemicals and specialty chemicals. Its customer relationships are longstanding, and out of its over 1,700 total customers
over the past ten years, it has enjoyed business relationships for more than five years with 31% of these customers. It added 927 customers between April 1, 2018 and December 31, 2021
Hemani Industries operates three modern manufacturing facilities in Gujarat, located in Dahej, Ankleshwar and Saykha, which are strategically located near the Hazira Port.
For more information, click www.hemanigroup.com
Objects of the IPO
The Company proposes to utilize the Net Proceeds towards funding of
1. Funding the capital expenditure requirements for the capacity expansion at Saykha industrial estate
2. Repayment/prepayment of certain borrowings of the Company
3. Investment in the wholly owned Subsidiary, HCCPL, for the repayment/prepayment of certain borrowings of HCCPL
4. Funding the long-term working capital requirement of the Company
| Hemani Industries IPO Details | |
| IPO opens on | (?) ,2022 |
| IPO closes on | (?) ,2022 |
| Issue Type | Book Built Issue IPO |
| Issue Size | up to (?) Shares /Rs 2000 Cr |
| * Fresh Issue | Rs.500 Cr |
| * Offer for Sale | up to NIL Shares /Rs 1500 Cr |
| Face Value per share: | Rs. 5 |
| Price Band | Rs. (?) |
| Employee discount | Rs. (?) per share |
| Retail Lot Size | (?) Shares |
| Listing will at | BSE, NSE |
| Shares offered to | Shares | Rs. |
| QIB (50 %) | – | Rs (?) Cr |
| NII (15 %) | – | Rs (?) Cr |
| RII (35 %) | – | Rs (?) Cr |
| Employees | – | Rs (?) Cr |
| Total Shares | – | |
| Retail portion will be oversubscribed by | – Forms | |
| How much Shares to Apply? | ||
| Min Retail Application | – Shares | Rs. – |
| Max Retail Application | – shares | Rs. – |
| Small HNI (Min) application | – Shares | Rs. – |
| Small HNI (Max) application | – shares | Rs. – |
| Big HNI Application | – shares | Rs. – |
| Hemani Industries IPO Tentative timetable | |
| IPO opens on | ? ,2022 |
| IPO Closes on | ? ,2022 |
| IPO Allotment on | ? ,2022 |
| Unblocking of ASBA | ? ,2022 |
| Credit to Demat Accounts | ? ,2022 |
| Listing on | ? ,2022 |
| Registered Office of Hemani Industries | |
| 3rd floor, 301, C Wing, Neelkanth Business Park, Kirol Village, Nr. Vidhya Vihar Bus Depot, Mumbai, 400 086 | |
| Hemani Industries IPO Lead Managers | |
| J M financial, Kotak Mahindra Capital | |
| Registrar to Hemani Industries IPO | |
| Link Intime India Ltd. |
| Hemani Industries IPO Financial & Analytical Ratios | ||||
| Year | Total Income | Net Profit | EPS | RoNW |
| Rs. | Rs. | Rs. | % | |
| 2019-20 | 1019.83 | 135.63 | 15.06 | 31.25 |
| 2020-21 | 1148.31 | 170.30 | 18.91 | 28.34 |
| 2021-22 (9M) | 713.36 | 114.40 | 12.70 | 15.86 |
| Book Value of the Share on | 30.09.2021 | Rs.66.39 | ||
| Book Value of the Share | after the IPO | Rs. | ||
| Offer Price | Rs. – | |||
| Ratio Analysis | |
| Upper Price Band/last EPS | – |
| Upper offer price/Book Value Ratio | – |
| Upper offer price/BV after IPO Ratio | – |
Hemani Industries Peer Comparison
| As on date of DRHP | Total Income Rs. | Net | PE |
| Rs. in Cr. | Income | Profit | Ratio of |
| Rs. | Rs | ||
| The IPO Company | 0 | 0 | (?) |
| Anupam Rasayan | 0 | 0 | 101.26 |
| Buyer Cropscience | 42.26 | ||
| Bharat Rasayan | 31.9 | ||
| Dhanuka Agritech | 15.82 | ||
| Heranba Industries | 16.13 | ||
| PI Industries | 56.04 | ||
| Rallis India | 20.26 | ||
| Sumitomo Chemicals | 58.83 | ||
| UPL ltd | 21.83 |
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