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Hexagon Nutrition Ltd. Receives SEBI’s Approval to Go Public; Get All Details Here!

16 August 20224 mins read by Angel One
Hexagon Nutrition Ltd. Receives SEBI’s Approval to Go Public; Get All Details Here!
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Hexagon Nutrition Ltd. has obtained SEBI’s nod on Friday, 4 March 2022. This company filed its Draft Red Herring Prospectus back in December 2021. According to the DRHP, this company plans to gather funds up to Rs. 600 crores via an initial public offering (IPO).

Read along to find out more on this matter!

A Closer Look into This Initial Public Offer

The DRHP of Hexagon Nutrition Ltd. filed with SEBI reflects a fresh issuance of equity shares amounting to Rs. 100 crores in this public offering. Alongside, there will be an OFS (offer for sale) of 30,113,918 equity shares worth Rs. 500 crores.

Existing stakeholders will divest their stake in Hexagon Nutrition Ltd. through this offer for sale. The details of the OFS breakdown are provided in the table below.

Stakeholder Shares
Arun Purushottam Kelkar 77 lakh
Subhash Purushottam Kelkar 61.36 lakh
Anuradha Arun Kelkar 15 lakh
Nutan Subhash Kelkar 25 lakh
Somerset Indus Healthcare Fund I Ltd. 1.22 crore
Mayur Sirdesai 73,668

Objectives of This IPO

As per the Draft Red Herring Prospectus, Hexagon Nutrition Ltd. is raising funds through this IPO to meet the following objectives.

  • The funds raised through the fresh issuance of shares will be used to pay debts, fund capital requirements for incremental working, and support capital expenditure.
  • Furthermore, the raised funds will be used to expand the existing facility and take care of its financing capital expenditures.
  • These funds will also be used for investing in subsidiaries and for general corporate purposes.

Know About the Company – Hexagon Nutrition Ltd.

Hexagon Nutrition Ltd. started as a micronutrient formulating company in 1993. The company was founded by Arun and Subash Kelkar. It is a Mumbai-based company that indulges in marketing, research, development and nutrition manufacturing. Further, it has moved up on the value chain and developed various leading health, wellness, and clinical nutrition brands. Pentasure, Obesigo and Pediagold are some of the renowned brands under this company.

Hexagon Nutrition Ltd. acquired funding from Somerset Indus Healthcare Fund-I, an offshore private equity firm, in 2016. At the same time, Somerset Health Capital Advisors’ Director and Advisor, Mayur Anand Sirdesai, invested Rs. 25 crores for a 10% stake in Hexagon Nutrition Ltd.

Further, Hexagon Nutrition Ltd. set up a trading company in South Africa with plans to build a facility there. They are also setting up a factory in Uzbekistan with operations to commence by 2022.

Financial Highlights of Hexagon Nutrition Ltd.

The financial highlights of this company are provided in the table below.

Particulars Total Income (in Rs. Crores) PAT (in Rs. Crores) Total Assets (in Rs. Crores)
FY21 215.43 22.86 213.56
FY20 210.83 18.57 202.13
FY19 235.90 14.82 191.57

Final Thoughts

Hexagon Nutrition Ltd. is a pure-play developing and research-oriented nutrition company with pan-India and global influence. With SEBI’s nod, the company can now proceed with its IPO to raise funds of nearly Rs. 600 crores.

Keep an eye on our blogs for more news and updates on the stock market and IPOs.

Source: Business Standard

Frequently Asked Questions

1. What is the incorporation date of Hexagon Nutrition Limited?

The Hexagon Nutrition Ltd. was founded by Arun and Subash Kelkar and was incorporated on 27 May 1993.

2. Which products and services does Hexagon Nutrition Ltd. provide?

Vitamins, protein and mineral supplements are some of the products and services provided by Hexagon Nutrition Ltd.

3. What was Hexagon Nutrition Ltd.’s revenue from the top 10 customers in the last 3 years?

Hexagon Nutrition Ltd. generated revenues Rs. 107.12 crores, Rs. 74.76 crores, and Rs. 87.27 crores from the top 10 customers in FY 19, FY 20 and FY 21, respectively.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.

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