Agrochemical manufacturer Hemani Industries Ltd has filed initial papers with Sebi to raise Rs 2,000 crore through an initial public offering.
The Initial Public Offering (IPO) will include the issuance of new equity shares totaling up to Rs 500 crore and an Offer to Sale (OFS) of equity shares of up to Rs 1,500 crore by its promoters. According to a draft Red Herring Prospectus (DRHP), OFS includes offloading up to Rs 500 crore of shares for Jayesh Mohan Dama, Mohan Sunderji Dama and Minal Mohan Dama.
The company may consider a pre-IPO with a value of up to Rs 100 crore. The company will use the net proceeds of Rs 129.71 crore to fund the capital expenditure requirement for capacity expansion at Sikh Industrial Park and Rs 48.34 crore to repay or prepay certain loans.
Besides, Rs 93.87 crore will be used for investment and repayment or prepayment of some loans in the wholly owned subsidiary of HCCPL and Rs 150 crore to finance the working capital requirement of the company in the long run. The proceeds will also be used for general corporate purposes.
JM Financial and Kotak Mahindra Capital are the issue managers for the initial public offering. The Gujarat-based company derives 60-70 percent of its revenue from exports, with its presence in high growth regions such as Asia Pacific, Latin America, the United States, Russia, Africa and Australia.
For the financial year ended 31st March, 2021, the company made a profit after tax of Rs. 170.30 crore while the total income from operations was Rs. 1,148.30 crore.
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