Hexagon Nutrition IPO

Hexagon Nutrition limited is a unique pure-play nutrition firm with a strong research focus. They are the only holistic nutrition company that sells clinical supplements, micronutrient premixes, and therapeutic supplements. Hexagon Nutrition IPO will hit the market in May 2021.

About Hexagon Nutrition

They specialise in holistic nutrition products, which include a variety of nutritional and nutrition-enhancing items. Their product portfolio covers a wide range of topics, including food fortification, therapeutic nutrition, clinical nutrition, and malnutrition reduction.

They are a completely integrated firm that is involved in all aspects of product development, marketing, research and development, and production, with a strong emphasis on quality.

Since their inception in 1993 as a micronutrient formulations company, they have progressed up the value chain to create the top health, wellness, and clinical nutrition brands “PENTASURE,” “OBESIGO,” and “PEDIAGOLD” (Source: Giract Report). They have a foothold in India and have supplied their products to over 70 nations.

Products Portfolio

Their product line is mostly divided into three categories:

• B2C Segment

From preschool to geriatric nutrition, they provide branded wellness and therapeutic nutrition solutions that cover daily nutritional requirements.

Additionally, the goods in this category address nutritional deficit for both chronic and nonchronic diseases, along with nutrition assistance for hospitalised and critically sick patients to help them recover faster.

Its PENTASURE brand focuses on adult health and clinical nutrition, while its OBESIGO brand focuses on weight loss and the PEDIAGOLD brand focuses on paediatric nutrition.

They set ourselves apart from the competition by providing whey-based formulas and disease-specific nutritional solutions. (Courtesy: Giract Report) Their branded items are sold in over 20 nations and distributed throughout India via offline and online channels.

• B2B2C Segment

They are India’s biggest premix company and one of the top ten in the world, providing customised micronutrient formulations in the form of vitamin and mineral premixes to Indian and international FMCG companies for fortification of consumer goods such as malted health beverages, biscuits, milk products, spreads, flour, and edible oils.

Coca-Cola India, Amul, Dabur, Marico, Veeba Food Services, Zywie Ventures (“Oziva”), United Biscuits, Dodla Dairy, Dukes Consumer Care, LT Foods, Gemini Edibles & Fats India, Govind Milk & Milk Products, and others use their premixes.

Clients from around the world include The Global Alliance for Improved Nutrition (“GAIN”), Nutriset SAS, and DPO International Sdn Bhd.

• ESG segment

Therapeutic foods are available in two types:

1. They provide nutrient-dense RUFs in a paste form with added minerals and vitamins to treat malnutrition in children and to complement the nutritional needs of pregnant and breastfeeding women. These ready-to-use therapeutic food items are used to cure severe and moderate acute malnutrition, respectively. These items are distributed worldwide through long-term agreements with organisations like as UNICEF and Rwanda Medical Supply, among others.
2. They also provide Micro Nutrient Powders to UNICEF and government organisations like Rwanda Medical Supply, among others, who aim to make a social effect by distributing these items for home food fortification. They are among the largest licenced providers for MNPs under the UN programme.

Hexagon Nutrition IPO

Hexagon Nutrition 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 INR 100 crores & 6,136,000 equity shares on 23 December 2021.

The offer includes a fresh issue of INR 100 crore and there is offer for sale (OFS) of 6,136,000 equity shares by the promoters mentioned in the DRHP. They are not looking for any Pre-IPO placement 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	228.42	213.56	202.14	191.57
Total Revenue	126.92	215.43	210.83	235.90
Profit After Tax	15.21	22.86	18.57	14.82

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	2.07	1.86	3
Financial Year 2020	1.68	1.51	2
Financial Year 2019	1.34	1.21	1
Weighted Average	1.82	1.64
30 Sep. 2021	1.38	1.24

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

The following business strengths enable us to operate effectively in the sector:

• In South Asia, they are the dominant player in micronutrient premix formulations, and in India, they are the market leader in tailored premix formulations.
• In the fields of wellness and clinical nutrition, they have industry-leading brands.
• Long-term partnerships with high-profile clients result in recurrent revenues and orders.
• Strong research and development capability with a focus on innovation.
• Manufacturing capability for a wide range of products with strict quality and food safety standards.
• With a presence in multiple geographies, they have a well-established pan-India omnichannel network.
• Promoters that have transitioned from professional to entrepreneur and are backed by a reputable institutional investor.
• Financial performance has a track record of improvement.

Peer Comparison

S. No.	Face Value	Company Name	PE
1	10	Zydus Wellness Limited	99.26
2	10	Nestle India Limited	87.89
3	1	Dabur India Limited	60.62
4	1	Britannia Industries Limited	46.37

Note

1. On December 13, 2021, the closing BSE price of these equity shares was retrieved from the BSE portal.
2. All of the financial data for the listed industry peers given above is on a consolidated basis (unless otherwise stated) and comes from the firm’s annual results for the fiscal year ending March 31, 2021.

Hexagon Nutrition Limited IPO Details

IPO Opening Date	May 2021
IPO Closing Date	May 2021
Issue Type	Book Building
Face Value	1 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	–
Fresh Issue	100 Crore
Offer for Sale	6,136,000 Equity Shares

Hexagon Nutrition IPO Date

Hexagon Nutrition IPO opening date is May 2021, and the closing date is May 2021. The Hexagon Nutrition issue may list in May 2021.

IPO Opening Date	May 2021
IPO Closing Date	May 2021
Basis of Allotment Date	May 2021
Initiation of Refunds	May 2021
Credit of Shares to Demat Account	May 2021
IPO Listing Date	May 2021

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

Hexagon Nutrition limited IPO Allotment 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 Hexagon Nutrition limited IPO.

Hexagon Nutrition IPO GMP

Hexagon Nutrition 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)
May 2021
May 2021
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May 2021
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May 2021
May 2021
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May 2021

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Hexagon Nutrition IPO Review

Hexagon Nutrition 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 Hexagon Nutrition IPO is good or bad.

Hexagon Nutrition Limited IPO Risk

• They rely largely on the premix formulation area, as well as a few specific clients in that category.
• They do not have long-term contracts with their third-party suppliers, and a supply shortage could have a negative impact on their business.
• The performance of their research and development endeavours is critical to their efforts to introduce new items.
• Failure to maintain high-quality accreditations and certifications could harm their brand and reputation.
• For their branded nutrition items, they rely primarily on channel partners such as distributors and retailers.
• They are vulnerable to volatility in foreign currency exchange rates, which may have a negative impact on their financial situation.

Other Threats

• Their business exposes company to risks in a number of nations that could have a major negative impact on their operations.
• Certain of their business transactions in India and abroad are with government or government-funded enterprises.
• They rely on third-party logistics and distribution companies.
• If they do not keep up with the rapid trends in the marketplace and market, demand for their items and revenues may drop.
• The secured credit agreements and any other existing obligations may put restrictions on their capacity to conduct the business.
• Several legal cases involving their Company, subsidiaries, promoters, and directors are still pending. Failure to effectively defend these proceedings could have a negative impact to the company.

Manufacturing Facilities

Nasik (Maharashtra), Chennai (Tamil Nadu), and Thoothukudi (Tamil Nadu) are their three production facilities. These facilities are centrally positioned to provide easy access to the ports and duty-free imports in the SEZs of Chennai and Thoothukudi.

Their well-defined and linked manufacturing procedures enable them to continually maintain product quality. From the acquisition of raw materials to the delivery of the finished product, they comply to strict quality and food safety standards.

Their production lines have got multiple certifications and accreditations from domestic and international accreditation organisations, such as the FSSC 22000, Good Manufacturing Practice certification, ISO 9001:2015 certification, and Halal certification, verifying Their system and reliability uniformity.

Hexagon Nutrition Limited IPO Brokerage views

• 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

Hexagon Nutrition IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
May 2021	1
May 2021	2
May 2021	3

Management

Arun Purushottam Kelkar and Subhash Purushottam Kelkar, who have over 40 years and 30 years of professional and managerial expertise, correspondingly, formed their firm.

They served for Siemens India Limited, Castrol India Limited, Glaxo Laboratories (India) Limited, Ethnor Limited, and Super Pharma Private Limited before founding their firm 28 years ago.

Vikram Arun Kelkar and Dr. Nikhil Arun Kelkar, who have over 17 and 13 years of industry experience, respectively, have since joined their firm.

Furthermore, Vikram Arun Kelkar and Dr. Nikhil Arun Kelkar are the Managing Director and Joint Managing Director, respectively, of their Company, where they oversee relationships with their major institutional clients, distributors, and suppliers in addition to overseeing general business processes.

Promoter

• Arun Purushottam Kelkar
• Subhash Purushottam Kelkar
• Vikram Arun Kelkar
• Dr. Nikhil Arun Kelkar

Promoters’s Holding

Pre Issue Share Holding	86.60%
Post Issue Share Holding

Hexagon Nutrition Prospectus