Hexagon Nutrition IPO: The initial public offering (IPO) of Hexagon Nutrition is set to open for subscription tomorrow, Friday, 5 June and will close on Tuesday, 9 June. The company, which aims to raise ₹139 crore from the issue, has fixed a price band of ₹42-45 per share.
The issue will be the first mainboard IPO to hit Dalal Street in a month, with IPO activity remaining muted this year amid market uncertainty linked to the ongoing Middle East conflict.
Moreover, the IPO has not witnessed any grey market activity so far. According to investorgain.com, the grey market premium (GMP) is ₹0, indicating an expected listing around the issue price.
Here are the key details investors should know before subscribing to the issue:
Offer Structure: The IPO consists entirely of an offer for sale (OFS) of up to 30.86 million equity shares and does not include any fresh issue component.
Promoters Selling: Existing shareholders Arun Purushottam Kelkar, Subhash Purushottam Kelkar, Aditya Kelkar and Nutan Subhash Kelkar will dilute their holdings through the OFS.
Important Dates: The basis of allotment is expected to be finalised on June 10. The shares are scheduled to list on the BSE and NSE on June 12.
Lot Size: Investors can apply for a minimum of 333 shares. At the upper price band of ₹45 per share, the minimum investment works out to ₹14,985.
Issue Objective: Since the issue does not include a fresh issue of shares, Hexagon Nutrition will not receive any proceeds from the IPO.
Investor Allocation: The company has reserved 50% of the net issue for qualified institutional buyers (QIBs), 35% for retail investors and 15% for non-institutional investors (NIIs).
About the Company: Founded in 1993, Hexagon Nutrition is a research-focused nutrition company offering micronutrient premixes, therapeutic nutrition products and clinical nutrition solutions. The company provides exposure to India’s growing nutrition, wellness and micronutrient market, although investors should carefully evaluate the risks highlighted in the Red Herring Prospectus (RHP).
Financials: For FY25, revenue from operations increased 9% year-on-year to ₹324.92 crore from ₹297.7 crore in FY24. Profit after tax (PAT) surged 99.5% to ₹24.3 crore from ₹12.2 crore a year earlier. Margin performance remained healthy at 12.33% in FY25, compared with 8.36% in FY24 and 6.17% in FY23.
Anchor Book: The anchor investor portion will open on June 4.
BRLMs: Cumulative Capital and Catalyst Capital Partners are the book-running lead managers for the issue, while KFin Technologies is acting as the registrar.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.