Hemani Industries IPO

Hemani Industries limited is an Indian chemical firm specialising in the production and distribution of agrochemicals and specialty chemicals. Hemani Industries IPO will hit the stock market in August 2022.

About Hemani Industries

Crop protection (insecticides, herbicides, and fungicides), as well as goods for wood protection, veterinary, domestic, and public health purposes, are among the end uses of their products. Most of their raw materials are produced in-house, hence they are extremely backward integrated. (March 2022) (Source: F&S Report).

They also provide contract research and production services (“CRAMS”) and contract production for multi-national and national firms in the agrochemical and specialty chemicals industries, in addition to producing and selling their products (as Intermediates, Technical, and Formulations).

They are present at every stage of the value chain, including technicals, formulations, and intermediates. As per Frost & Sullivan, in Fiscal 2021, they will be the main player in the Indian pyrethroid market. (Source: March 2022 F&S Report)

Production

They were the world’s largest maker of Cypermethrin Technical by volume in CY2020, the world’s second biggest maker of Alpha Cypermethrin by volume, the third largest global producer of Permethrin Technical by volume, and the third largest maker of Dicamba by volume in India. (March 2022) (Source: F&S Report).

They are mostly concerned with exporting. They shipped their goods to 60 countries in fiscal year 2021. F&S operates in high-growth countries including Asia Pacific, Latin America, the United States, Russia, Africa, and Australia, according to F&S. (March 2022) (Source: F&S Report).

They are a major exporter of MPBD to China due to a lack of MPBD manufacturing in the country (MPBD is the key starting material for Lambda).

Footprints

They are a recognized “Three Star Export House” by the Directorate General of Foreign Trade, Ministry of Commerce and Industry, Government of India, and they have a worldwide sales and marketing team committed to producing business orders and identifying customer needs.

In Australia, South Korea, and India, they have three wholly-owned entities. Their two abroad subsidiaries serve as marketing and distribution arms, assisting in the identification of new consumers as well as the comprehension of their changing demands.

Their two international offices, three foreign stock sites, and commission agents serve customers from all over the world. Their devoted marketing teams work hard to expand into new markets and uncover potential customers, and to meet the needs of current customers.

Hemani Industries IPO

Hemani Industries Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 2,000 Crore on 28 March 2022.

The offer includes a fresh issue of 500 Crore and there is offer for sale (OFS) of 1,500 Crore by the promoters mentioned in the DRHP. They are also looking for a Pre-IPO placement of 100 crore in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Sep-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	1,260.86	996.18	848.86	658.47
Total Revenue	713.36	1,148.31	1,019.83	894.98
Profit After Tax	114.33	170.44	134.92	74.11

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	18.81	18.81	3
Financial Year 2020	14.82	14.82	2
Financial Year 2019	8.26	8.26	1
Weighted Average	15.72	15.72
30 Sep. 2021	12.52	12.52

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

They feel that the following qualitative factors and business strengths enable them to compete successfully in the industry, and that these factors and strengths will be used to calculate the Offer Price:

1. Their primary agricultural and specialty chemical products have market-leading positions.
2. In a market with significant entry barriers, having a global presence is essential.
3. Long-term ties with a large consumer base.
4. R&D capabilities are strong.
5. Vertical integration and high performance with a commitment to excellence.
6. Exceptional financial results.
7. Senior management and experienced promoters.

Hemani Industries Peer Comparison

S. No.	Face Value	Company Name	PE
1	10	Anupam Rasayan India Limited	101.26
2	10	Bayer Cropscience Limited	42.26
3	10	Bharat Rasayan Limited	31.90
4	2	Dhanuka Agritech Limited	15.82
5	10	Heranba Industries Limited	16.13
6	1	PI Industries Limited	56.04
7	1	Rallis India Limited	20.26
8	1	Sumitomo Chemical Industries Limited	58.83
9	2	UPL Limited	21.93

1. All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2021, which can be found on the Stock Exchanges’ websites.
2. The P/E Ratio was calculated by dividing the closing market price of equity shares on BSE on March 25, 2022 by the Diluted EPS.

Hemani Industries IPO Details

IPO Opening Date	August 2022
IPO Closing Date	August 2022
Issue Type	Book Building
Face Value	5 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	2,000.00 Crore
Fresh Issue	500 Crore
Offer for Sale	1,500 Crore

Hemani Industries IPO Date

Hemani Industries Limited IPO opening date is August 2022, and the closing date is August 2022. The Hemani Industries issue may list in August 2022.

IPO Opening Date	August 2022
IPO Closing Date	August 2022
Basis of Allotment Date	August 2022
Initiation of Refunds	August 2022
Credit of Shares to Demat Account	August 2022
IPO Listing Date	August 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability

Hemani Industries Limited IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Hemani Industries IPO.

Hemani Industries IPO GMP

Hemani Industries Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
August 2022
August 2022
August 2022
August 2022
August 2022
August 2022
August 2022
August 2022
August 2022
August 2022
August 2022
August 2022

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Hemani Industries Limited IPO Review

Hemani Industries Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Hemani Industries IPO is good or bad.

Hemani Industries Limited IPO Risk

• Their firm relies on and will continue to rely on their manufacturing facilities, and the manufacturing process exposes them to certain dangers.
• Environmental, safety, health, and labour laws, as well as other applicable requirements, apply to their operations.
• The impact of the COVID-19 pandemic is unknown and evolving, and it may have a negative influence on their business.
• To safeguard their intellectual property, they use a combination of trade marks, trade secrets, copyright legislation, and contractual constraints.
• Changes in legislation controlling their business, products, and the products of their customers could have a negative influence on their operations.
• Major clients account for a large portion of their revenue, and most of these customers do not have long-term contracts with them.

Other Threats

1. Their reliance on specific industries for a substantial portion of their sales could hurt their bottom line.
2. Alternative pest management and crop protection strategies, including biotechnology goods, pest resistant seeds, and genetically modified crops, may diminish demand for their products.
3. Their agrochemicals industry is influenced by climatic conditions, the total area under cultivation, and the farming community’s cropping patterns.
4. Farmers’ resistance to crop protection chemicals, as well as their improper application of their products, may have a negative impact on their business.
5. Several lawsuits have been filed against their company and several directors and key management personnel. Any negative decision in such processes could expose them to fines and penalties, as well as have a negative impact on their business.

Production

In Gujarat, they have three manufacturing facilities: Dahej, Ankleshwar, and Saykha, all of which are conveniently placed near the Hazira Port.

These plants had a total production capacity of Intermediates and Technicals of 29,088 MTs, 25,638 MTs, 22,614 MTs, and 19,064 MTs, correspondingly, as of September 30, 2021, March 31, 2020, and March 31, 2019, and a Formulations potential of 9,200 KL at Ankleshwar during the same timeframes.

As of 2020, they accounted for 27% of the installed domestic pyrethroid capacity, as per F&S. (March 2022) (Source: F&S Report).

They also have a pilot plant with four reactors (two with a capacity of 100L and two with a capacity of 250L) and downstream equipment that can handle a variety of scale-up capacities and process parameters.

Hemani Industries Limited IPO Brokerage views

Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Hemani Industries IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Hemani Industries Limited IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
August 2022	1
August 2022	2
August 2022	3

Hemani Industries Management

Their company has expanded thanks to the vision, expertise, and direction of an experienced management team that includes Promoters, Managing Director Mohan Dama, and Joint Managing Director Jayesh Dama, who have a combined experience of more than 52 years in the chemical sector.

Each of the Promoters has aided their company in developing strong commercial partnerships with domestic and international consumers and suppliers.

Personnel of their senior management team include Mohan Sunderji Dama, Jayesh Mohan Dama, Dinanath Ramayan Rai, Ravi Sunderarajan, Avani Rajesh Umatt, Sameer Ashok Paingankar, all of whom have extensive experience in the agrochemical and speciality chemicals industries.

Their senior management team has also helped them seize market potential, develop and implement business plans, and manage client expectations.

Promoters

• Jayesh Mohan Dama
• Mohan Sunderji Dama
• Minal Mohan Dama

Promoter’s Holding

Pre Issue Share Holding	100%
Post Issue Share Holding

Hemani Industries Limited Prospectus