Agrochem firm Hemani Industries files draft papers for Rs 2,000-cr IPO

The IPO will comprise fresh issue of equity shares aggregating up to Rs 500 cr and an Offer For Sale of equity shares worth up to Rs 1,500 cr by its promoters

Agrochemical manufacturer Hemani Industries Ltd has filed preliminary papers with Sebi to raise Rs 2,000 crore through an initial public offering.
 

The Initial Public Offering (IPO) will comprise fresh issue of equity shares aggregating up to Rs 500 crore and an Offer For Sale (OFS) of equity shares worth up to Rs 1,500 crore by its promoters. According to the Draft Red Herring Prospectus (DRHP), OFS comprises offloading of up to Rs 500 crore worth of shares each by Jayesh Mohan Dama, Mohan Sunderji Dama and Minal Mohan Dama.

The company may consider a pre-IPO placement of up to Rs 100 crore. The company will use the net proceeds worth Rs 129.71 crore for funding the capital expenditure requirement for the capacity expansion at Saykha industrial estate and Rs 48.34 crore for repayment or pre-payment of certain borrowings.
 

Besides, Rs 93.87 crore will be utilised for investment and repayment or prepayment of certain borrowings in its wholly-owned subsidiary HCCPL and Rs 150 crore for funding the company's long term working capital requirement. The proceeds will also be used for general corporate purposes.
 

JM Financial and Kotak Mahindra Capital are the book running lead managers for the IPO. The Gujarat-based firm derives 60-70 per cent of its revenue from exports, with presence in high-growth regions such as Asia Pacific, Latin America, the United States, Russia, Africa and Australia.
 

For the financial year ended March 31, 2021, the company had a profit after tax of Rs 170.30 crore while the total income from operations stood at Rs 1,148.30 crore.