Hemani Industries Ltd IPO – Hemani Industries Ltd DRHP is approved by SEBI in October 2022. The company filed DRHP with market regulator SEBI on April 11, 2022. Hemani Industries Ltd is coming up with an initial public offering (IPO) of INR 2000 crores. The offer consists of an Offer for Sale (OFS) of INR 1500 Crore and a fresh issue of INR 500 Crore. The face value of each equity share will be INR 5 per equity share.
Promoters are selling part of their stakes in the company. The promoters – JAYESH MOHAN DAMA is selling INR500 crore, MOHAN SUNDERJI DAMA is selling INR500 crore, and MINAL MOHAN DAMA is selling INR500 crore in this issue.
Utilization of Net Proceeds from Hemani Industries Ltd IPO
Hemani Industries Ltd will not receive any amount from the offer for sale. However, the company will use the net proceeds from the IPO as below.
- Hemani Industries Ltd is planning to expand its capacity at Saykha industrial estate. Around INR 1297.2 Crores will be allotted for that.
- The company will repay/ prepay, in full or part, itself and its subsidiaries’ borrowings with INR 142.2 Crore.
- Around INR 150 Crore will be used to fund the long-term working capital requirement of the Company.
Hemani Industries Ltd – Company Overview
The company was incorporated as ‘‘Hemani Intermediates Private Limited” in Maharashtra Mumbai on February 3, 1994. The name again changed to “Hemani Industries Ltd” on May 3, 2011, and a certificate of change of name was issued by the RoC.
- Hemani Industries Ltd is engaged in manufacturing and marketing a range of agrochemicals and specialty chemicals.
- The company’s products are used in various applications such as crop protection, wood protection, veterinary, household, and public health applications.
- Hemani Industries Ltd is a highly backward integrated (Intermediates, Technical, and Formulations) company with most of the raw materials being produced in-house.
- The company is also engaged in contract research and manufacturing services.
- Globally, the company is the largest producer of Meta Phenoxy Benzaldehyde (“MPBD”) and the second largest producer of Cypermethrin Acid Chloride by volume.
- Other products of the company are Cypermethrin Technical, Alpha Cypermethrin, Permethrin Technical, Deltamethrin, Metamitron, etc.
- Exporting to ~ 60 countries including the United States, Russia, Australia, China, etc. Above 60% of revenue comes from exports in FY21.
Hemani Industries Ltd owners
Hemani Industries Ltd is led by a highly experienced senior management team. The Promoters of the Company are:
- Jayesh Mohan Dama
- Mohan Sunderji Dama
- Minal Mohan Dama
Hemani Industries Ltd Turnover
- Hemani Industries Ltd has been a consistent performer in terms of financial returns over the years.
- Revenue from the operation consistently grew from FY19 to FY21.
- EBITDA and PAT have also been growing consistently over the years.
- A zero-debt company with higher ROE and ROCE.
- EPS has also been going up during this time.
- The fixed asset turnover ratio is over 2%, which is a good sign that the company is fully utilizing its assets for profit.
Hemani Industries Ltd IPO – Valuation Parameters
|All amounts in INR Million |
(Year ended March 31)
|EBITDA Margin (%)||17.11%||20.93%||21.92%|
|Profit After Tax||759.77||1,356.32||1,703.01|
|PAT Margin (%)||8.49%||13.01%||14.31%|
|Earnings Per equity Share-Diluted||8.26||15.06||18.91|
|Net Cash from Operating Activities||108.29||761.08||1,335.97|
|Debt/Equity Ratio (%)||0.42||0.36||0.33|
|Fixed Asset Turnover Ratio (%)||4.22||3,76||3.21|
Hemani Industries Ltd IPO: Do you invest?
- Hemani Industries Ltd is a well-diversified company in terms of its geographic market.
- Over 60% of its revenue comes from exports and the export market is well diversified.
- As of December 31, 2021, the largest export countries by value include China, the United Kingdom, and the United States.
- The company is a certified “Three Star Export House” by the Directorate General of Foreign Trade, Ministry of Commerce and Industry, Government of India.
- Strong distribution network of dealers and distributors to augment sales domestically.
- Highly integrated intermediates company in one of the niche markets of crop protection, wherein the government of India has been coming up with different schemes.
- International factors such as China plus one, the Russia-Ukraine war, and higher energy costs in Europe will further benefit this company.
- Large customer base with long-term relationships
- Strong R&D capabilities and Operational excellence with a focus on quality, new product development, and vertical integration.
- The financial performance of the company is strong consistently.
- Hemani Industries Ltd will utilize its net proceeds to reduce debt and to expand its operation. This reflects the thought of the management to take the company to the next level.
- I am investing in the company during IPO. One thing left is the valuation of each equity share. Certainly, one will get listing gain from this IPO.
Hemani Industries Ltd IPO Details
|Hemani Industries Ltd IPO Details||Details|
|Hemani Industries Ltd IPO Date||Coming soon|
|Hemani Industries Ltd IPO Price band||Coming soon|
|Allotment date||Coming soon|
|Refunds Initiation date||Coming soon|
|Credit of Shares to Demat Account||Coming soon|
|Listing Date||Coming soon|
|Fresh Issue||INR 500 Crore|
|Offer for Sale||INR 1500 Crore|
|Equity Shares outstanding prior to the Offer||90,057,500 Equity Shares|
|Minimum bid (lot size)||Coming soon|
|Face Value||INR 5 per share|
|Listing on||BSE & NSE|
We endeavor to help you to understand different aspects of a company before you invest in the company’s IPO. Here are some suggested readings on company insights BIBA Fashion Limited IPO, Keystone Realtors Ltd IPO, Mankind Pharma IPO.
Hemani Industries Ltd Contact Details and lead managers
|Contact Details||Lead Managers|
|3rd floor, 301, C Wing, Neelkanth|
Business Park, Kirol Village, Nr.
Vidhyavihar Bus Depot, Mumbai,
Mumbai City 400 086
+91 22 6140 7600
|1. JM Financial Limited|
2. KOTAK MAHINDRA CAPITAL
Hemani industries ltd GMP
We do not believe that the grey market premium (GMP) of any company will have an impact on the listing gain of an IPO. However, this is an indicator that reflects the demand for the IPO in the market before the listing. We will share the update once the price of the equity share is announced.
|Date||Grey Market Premium||IPO Price|