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Hexagon Nutrition IPO
On 23 December 2021, Hexagon Nutrition Limited filed a DRHP with the Securities and Exchange Board of India to raise Rs. 600 crores through an initial public offering. The company’s public issue comprises an offer for sale of 30,113,918 (maximum) shares and a fresh issuance of shares worth Rs. 100 crores.
The offer for sale (OFS) in this public issue consists of 1.78 crores shares from promoters Nutan Subhash Kelkar, Anuradha Arun Kelkar, Subhash Purushottam Kelkar and Arun Purushottam Kelkar. Further, Mayur Sardesai will offload 73,668 equity shares, and Somerset Indus Healthcare Fund I will sell 1.22 crores shares.
The lead managers for this public issue are SBI Capital Markets and Equirus Capital. Refer to the chart below for the other vital details of this offering:
Issue Type
Book Built
Listing at
NSE and BSE
IPO Price Band
To be updated
Face Value
Re. 1
per share
Market Lot
To be updated
Minimum Order Quantity
To be updated
Issue Type
Book Built
Listing at
NSE and BSE
IPO Price Band
To be updated
Face Value
Re. 1
per share
Market Lot
To be updated
Minimum Order Quantity
To be updated
Listing at NSE, BSE
Important Dates for Hexagon Nutrition Limited IPO
| IPO Opening on | To be updated |
|---|---|
| IPO Closing on | To be updated |
| Basis of Allotment Publication Date | To be updated |
| Credit of the Shares to Demat Account | To be updated |
| Initiation of Refund | To be updated |
| Minimum Order Quantity | To be updated |
About Hexagon Nutrition Limited
Founded in 1993, Hexagon Nutrition Limited is a research-oriented and differentiated nutrition company selling therapeutic products, micronutrient premixes and nutrient solutions products. The clinical nutrition products of this entity have their presence across eminent e-commerce players, hospitals and retail pharmacies.
Under this brand name, PentaSure is popular in the wellness and health segment, offering a source of nutrition for different target groups. The product portfolio focuses on regular nutritional requirements and alleviation of malnutrition across demographics. It has 3 factories in Thoothukudi, Chennai and Nashik, and it offers its product categories across 70 nations. Hexagon Nutrition Limited now awaits approval from market regulator SEBI to launch its initial public offering.
Objectives of Hexagon Nutrition Limited IPO
Hexagon Nutrition Limited has planned to utilise the net proceeds from its public offering in the following ways:
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Pre-payment or repayment, in part or full, of some debts of Hexagon Nutrition and 2 of its subsidiaries, namely HNIPL and HNEPL
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For investing in HNIPL to fund capital expenditure at its existing manufacturing facility situated in Thoothukudi
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To finance capital expenditure towards the expansion of its existing facility located at Nashik
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To fund this company’s incremental working capital
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For general corporate purposes
Why Should You Invest in Hexagon Nutrition Limited IPO?
Keeping the following advantages in mind, avid investors can consider investing in this issue:
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The track record of Hexagon Nutrition Limited indicates improvement in financial performance.
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This company involves a recognised institutional investor, a well-informed management team and experienced promoters.
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The products of Hexagon Nutrition Limited are manufactured and developed through stringent food safety and quality procedures.
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This firm has steady R&D facilities coupled with innovation.
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The customised premix formulations make Hexagon Nutrition Limited a market leader in India. Besides, the company is famous for its micronutrient premix formulations in South Asia.
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It includes leading brands in clinical nutrition and wellness.
Financial Highlights
Go through the financial profile of Hexagon Nutrition Limited before making the investment decision:
| Financial Year | Total Assets in Crores | Total Income in Crores | Profit After Tax in Crores |
|---|---|---|---|
| FY 2021 | Rs. 213.56 | Rs. 215.43 | Rs. 22.86 |
| FY 2020 | Rs. 202.13 | Rs. 210.83 | Rs. 18.57 |
| FY 2019 | Rs. 191.57 | Rs. 235.90 | Rs. 14.82 |
How to Apply for Hexagon Nutrition Limited IPO?
Individuals can apply for this public offering using the following procedures:
UPI
One can place his or her bid for the IPO of Hexagon Nutrition Limited through a UPI ID. For this, he or she needs to link the bank account to the required UPI ID. After that, it is important to link this UPI ID to Angel One (a trading platform).
Upon successful linking, one can choose the UPI option from the Angel One website or application in order to apply for the public offer of Hexagon Nutrition Limited or any other entity. Additionally, one may block his or her subscription amount of this offering if required through the respective UPI app.
Demat Account
A new investor can place his or her bid for the issue of Hexagon Nutrition Limited via a Demat account. With the Angel One app or website, one can create a Demat account free of cost. After that, he or she can opt for this public issue or any other offering by logging in to his or her Demat account. If one already uses the Angel One platform, then he or she can click here for placing the bid for this IPO.
Hexagon Nutrition Limited IPO – Noteworthy Highlights
Both veteran and prospective investors must know about the following USPs of this company:
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The brands under Hexagon Nutrition Limited, namely Pedia Gold (caters to paediatric nutrition management), Obesigo (for weight management) and PentaSure (for clinical nutrition and wellness), are well-known in the health space.
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It is an exporter to above 70 nations such as Brazil, Angola, Russia, Qatar, UAE, Malaysia, France and French Polynesia.
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The premix formulations of Hexagon Nutrition Limited are supplied to entities such as Dukes Consumer Care, Veeba Food Services, Amul and Dabur.
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Its distribution network has been spread worldwide, with 25 distributors located in the Middle East, Africa, Southeast Asia and Latin America.
Hexagon Nutrition Limited IPO SWOT Analysis
Strength
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Hexagon Nutrition Limited maintains strong bonds with marquee investors that lead to repeat orders and recurring revenues.
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Its research team consists of 11 highly qualified members, and it has two R&D facilities (in-house) in Nashik and Chennai.
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Hexagon Nutrition Limited also has a successful PAN India multi-channel distribution, covering various geographies.
Weakness
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Hexagon Nutrition Limited has a high dependency on the B2B2C segment (premix formulations) and the consumers of that segment.
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The inability to renew or obtain regulatory approvals and permits and requisite statutory for its operations can impact the cash flow of this company.
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As Hexagon Nutrition Limited and its third-party suppliers do not maintain extended relationships, there may be a deficit in the supply, affecting its financials and business.
Opportunity
- In 2019, Hexagon Nutrition Limited established a trading entity in South Africa, and it aims to construct a facility here.
- It also has a reputation for creating high-quality items at affordable prices.
- It is building a factory in Central Asia (Uzbekistan) that is likely to commence its operations in 2022.
- Further, this company plans to launch products in new segments such as healthy ageing, sexual wellness, fertility and gynaecology.
Threats
- The business model of Hexagon Nutrition Limited in India, as well as in foreign countries, is distribution-based. So, the possibility to grow and expand depends on the effective management and reach of the distribution network. Inefficient management of the distribution network can significantly impact business.
- The onset of the COVID-19 pandemic or any other identical disease can greatly affect the business of Hexagon Nutrition Limited.
Competitive Analysis: Market Peers of Hexagon Nutrition Limited
The top competitors of Hexagon Nutrition Limited and their revenue are mentioned in the table below.
|
Name of Company |
Revenue |
|
Blackmores |
$ 469 Million |
|
Laleham |
$ 100 Million |
|
Trouw Nutrition |
$ 103 Million |
|
US Pharma Lab |
$ 202 Million |
Frequently Asked Question
When will the IPO of Hexagon Nutrition Limited open for subscription?
Hexagon Nutrition Limited has not yet disclosed the opening date for this initial public offering.
How much did Mayur Anand Sardesai invest in Hexagon Nutrition?
In 2016, Mayur Anand Sardesai and Somerset Indus Healthcare Fund I have made investments of Rs. 25 crores in Hexagon Nutrition for a 10% share. These investors will leave the company by way of its IPO.
What is the revenue of Hexagon Nutrition in FY 21?
Revenue of Hexagon Nutrition in FY 21 is Rs. 209.97 crores. It rose from Rs. 203.84 crores during FY 20 due to increased demand for therapeutic foods and premixes.
Is there any improvement in the EBITDA margin of Hexagon Nutrition?
Yes, the EBITDA margin of Hexagon Nutrition has improved from 14.55% during FY 20 to 16.38% during FY 21.
What is the net worth of Hexagon Nutrition in FY 21?
The net worth of Hexagon Nutrition in FY 21 is Rs. 138.06 crores, marking a rise from Rs. 116.73 crores in FY 20.
