Heranba Industries makes a bumper debut on stock exchanges — shares soar 44% over the issue price band

• The agrochemical company Heranba Industries listed nearly 43.5% higher and was trading at ₹900 a piece, compared to the IPO issue price of ₹626-627.
• The company's market value expanded to ₹3,678 crore after the listing.
• Heranba is one of the leading domestic producers of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permethrin, lambda-cyhalothrin.
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The agrochemical company Heranba Industries made a bumper debut on the bourses today. The share price of the Gujarat-based crop protection chemical manufacturer, exporter and marketer listed nearly 43.5% higher and was trading at ₹900 a piece, compared to the IPO issue price of ₹626-627.

Within minutes after listing, the shares of Heranba gained 2.14% of their value and were trading at ₹919.25 apiece at 10:05 am in an otherwise tepid market. The company's market value expanded to ₹3,678 crore after the listing.

Heranba is one of the leading domestic producers of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permethrin, lambda-cyhalothrin.

The bumper listing was already on the cards!

Heranba's public issue had received positive reviews from top brokerages, and the grey market was also ready to pay a hefty premium for its shares.

"Company return ratios are superior to peers (ROE is above 30%). Company has a strong financial position and has been generating positive cash flow. We expect a good listing for the company," said Keshav Lahoti, associate equity analyst at Angel Broking, in a post IPO note.

The IPO garnered a massive response from investors and was oversubscribed nearly 88 times — making it the second most successful IPO in terms of subscription in 2021. According to data from the stock-exchanges, the issue received bids for 58.15 crore equity shares against an offer size of 69.81 lakh shares.

The shares were commanding a premium of ₹260-270 in the grey market over the set price band of ₹626-627 per share, ahead of the listing. However, the grey market is not an official measure of the market premium.

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