Hexagon Nutrition Pvt Ltd – the company and management:
Hexagon Nutrition Pvt Ltd is coming up with IPO later this year. The company has filed a draft red herring prospectus (DRHP) with SEBI to raise INR 1,000 million through the initial public offering. Hexagon Nutrition Pvt Ltd was formed in 1993, headquartered in Mumbai, India. The company claims to be a pure player in the nutrition field that offers products across clinical products, micronutrient premixes, and therapeutic products. The company sells its products across India under the brand names PENTASURE, OBESIGO, and PEDIAGOLD. It also exports its products to over 70 countries across the world.
Hexagon Nutrition offers its products in three segments. Firstly, Branded nutrition products/ clinical nutrition products (B2C segment). Secondly, Micronutrient Premix formulations (B2B2C segment). Thirdly, Therapeutics Nutrition or Ready to use foods (“RUFs”) and Micro Nutrient Powder (“MNPs”).
Read the complete company insights here – “Hexagon Nutrition Pvt Ltd Company Profile – Key products, finance, management team, strategic insights”
Hexagon Nutrition Founder:
Arun Purushottam Kelkar is the Chairman and Executive Director of the Company. Subhash Purushottam Kelkar is an Executive Director of the Company. Vikram Arun Kelkar, the Managing Director of our Company.
Financial analysis:
Hexagon Nutrition reported a total income of INR 21.54 billion in FY 2021 as compared to INR 21.08 billion for FY 2020. This recorded a growth of 2.19%. Total expenses slightly declined from INR 18.64 billion in FY 2020 to INR 18.61 billion in FY 2021.
Read financial details of the company here – “Hexagon Nutrition Pvt Ltd Company Profile – Key products, finance, management team, strategic insights”
Hexagon Nutrition IPO pricing and issue size
Hexagon Nutrition Pvt Ltd is coming up with an initial public offering with both a fresh issue and an offer for sales. Fresh issues size INR 1000 million and the offer for sale is 30,113,918 equity shares. Within offer for sales, both promoters and investors are selling their holdings. Promoter Arun Purushottam Kelkar is selling up to 7,700,000 equity shares. Subhash Purushottam Kelkar is selling up to 6,136,000 equity shares. Other promoters such as Anuradha Arun Kelkar and Nutan Subhash Kelkar are selling up to 1,500,000 equity shares and 2,500,000 Equity shares respectively. Promoters’ offers for sale are aggregating up to 12,204,250. The rest of the equity shares will be sold by investors such as Somerset Indus Healthcare Fund I Limited and Mayur Sirdesai.
Hexagon Nutrition Pvt Ltd is proposing its shares be listed on both the Stock Exchanges- BSE and NSE. Equirus Capital Private Limited and SBI Capital Markets Limited are the book Running Lead Managers of this IPO is Kfin Technologies Private Limited is the registrar for this IPO.
The company’s equity shares outstanding before the initial public offer stand at 110,502,404 shares. Up to 50% of the offer shall be allotted on a proportionate basis to Qualified Institutional Buyers (“QIBs”, and such portion, the “QIB Portion”). Up to 60% of the QIB Portion is to allocate to Anchor Investors on a discretionary basis out of which at least one-third shall be reserved for allocation to domestic Mutual Funds only. No less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.
Hexagon Nutrition IPO – Utilization of Net Proceeds
Hexagon Nutrition Pvt Ltd will not receive any amount out of the offer for sale. However, the company proposes to utilize the net proceeds of the fresh issue to reduce the debt in full or in part. As of September 30, 2021, the total outstanding borrowings on a consolidated basis was INR 244.33 million. The company is planning to spend INR 335 million for this purpose.
Hexagon Nutrition will also spend INR 150 million to fund its incremental working capital requirements of the company. The company will utilise INR 192 million to meet the capital expenditure requirements for expanding our existing facility at Nashik. Hexagon Nutrition will utilize INR 71.47 million is to meet capital expenditure requirements at its existing facility at Thoothukudi. The rest of the amount from net proceeds will be used for general corporate purposes.
Outlook:
Hexagon Nutrition Pvt Ltd is in the Nutrition and Wellness sector where Governments across the globe are focusing. Increasing awareness among millennials and the impact of post-pandemic further enhance the requirement of nutrition as a daily need. The company is in a sweet spot with its well-recognized brand. Hexagon Nutrition has also been maintaining a strong relationship with its B2B clients. These factors will help the company to grow further. It is wise to invest in this company in the long term. However, it is yet to see the valuation of this company. Keep in touch for more details on it after declaring its IPO price range.
| Hexagon Nutrition Pvt Ltd | IPO Details |
|---|---|
| Subscription Dates | Coming Soon |
| Anchor Investor Bidding Date | Coming Soon |
| BID/OFFER Opens On | Coming Soon |
| BID/OFFER closes On | Coming Soon |
| Price Band | Coming Soon |
| Offer for Sale | 30,113,918 Equity Shares |
| Fresh Issue of Shares | INR 1000 million |
| Equity Shares outstanding before the Issue | 110,502,404 Equity Shares |
| Minimum bid (lot size) | Coming Soon |
| Face Value | INR 1 Per Share |
| Listed on | BSE and NSE |