Makers of nutrient products, Hexagon Nutrition is all set to launch its IPO. This company has filed its preliminary DRHP (Draft Red Herring Prospectus) papers with SEBI (Securities and Exchange Board of India) regarding the same. The IPO will have a dual flavour with an Offer of Sale (OFS) and a fresh issue of equity shares. Here are all the details regarding the same.
Key Highlights of Hexagon Nutrition Filing Preliminary Papers
- Hexagon Nutrition plans to raise Rs. 600 crores through its IPO. Ithas filed draft papers stating the same.
- There will be a new issue of equity shares amounting to Rs. 100 crores.
- Moreover, there will be a sale of 30,113,918 equity shares.
The break-up of the offer of sale (OFS) is as shown below:
|Investor Name||Amount Divesting|
|Arun Purushottam Kelkar||77 lakh shares|
|Subhash Purushottam Kelkar||61.36 lakh shares|
|Anuradha Arun Kelkar||15 lakh shares|
|Nutan Subhash Kelkar||25 lakh shares|
|Somerset Indus Healthcare Fund-1 Ltd.||1.22 crore shares|
|Mayur Sirdesai||73,668 shares|
According to certain market sources, the issue size will be in the range of Rs. 500 crores to Rs. 600 crores.
Back in 2016, Somerset Indus Healthcare Fund-1 and Mayur Sirdesai had acquired a 10% stake for Rs. 25 crores. Both of these investors are now exiting the company through the upcoming IPO. Mayur Sirdesai worked as an advisor and director of Somerset Health Capital Advisors.
Objectives of the IPO
Hexagon Nutrition has specified how it will use the money raised from the IPO. The break-up of the amount will be used to repay debts, expand existing facilities, etc. Let’s take a look at the details.
- 33.5 crores will be used to repay existing debt.
- 15 crores will be used to fund incremental working capital needs.
- 19.17 crores will be used to expand the Nashik facility.
- 7.15 crores will be used for the capital expenses requirements of a subsidiary. The name of the subsidiary is Hexagon Nutrition (International) Private Limited Thoothukudi plant.
Know About the Company
Arun Kelkar and Subhash Kelkar founded this company in 1993. This company offers the following products:
- Clinical products
- Micronutrient premixes
- Therapeutic products
The product portfolio also includes the alleviation of malnutrition and fortification of foods.
Presently, this company has 3 plants located in Nashik, Chennai, and Thoothukudi. It also sells its products across 70 countries.
A Quick Glance into the Company’s Financials
The company’s financials are as follows:
|Total Income (in Rs crore)||215.43||210.82||235.90|
|Profit After Tax (in Rs crore)||22.86||18.56||14.82|
|Net Worth (in Rs crore)||138.06||116.73||99.24|
|Earnings Per Share (Basic) (in Rs)||2.07||1.68||1.34|
|Net Asset Value Per Equity Share (in Rs)||12.49||10.56||8.98|
|Net Debt (in Rs crore)||−19.79||−1.96||16.28|
|EBITDA (in Rs crore)||34.40||29.60||25.73|
|EBITDA Margin (in %)||16.38||14.55||14.16|
|Total Borrowings (in Rs crore)||20.26||33.65||30.25|
The company experienced some hiccups concerning export sales. However, sales picked up in 2020 due to increased awareness about eating healthy. Since 30 September 2021, this company has experienced a positive cash flow of Rs. 4.45 crores.
Frequently Asked Questions
- To which brands does this company supply its premixes to?
- Who is the book running lead managers?
Ans. Equirus Capital and SBI Capital Markets are the book running lead managers to the IPO.
- Where does the company hope to create more plants?
Ans. Hexagon Nutrition plans to create plants in South Africa and Uzbekistan.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.