Mumbai-based Hexagon Nutrition Ltd (HNL) on Monday said it received the Securities and Exchange Board of India’s (SEBI) approval to raise Rs 600 crore through an initial public offering (IPO).
Last year in December, VCCircle reported that the company was set to file its draft papers for the IPO.
The IPO consists of a fresh issue of shares worth Rs 100 crore and an offer-for-sale (OFS) of up to 30,113,918 equity shares, as per HNL’s draft red herring prospectus (DRHP).
The proceeds from its fresh issuance worth Rs 33.5 crore will be deployed for the repayment or prepayment of borrowings, in full or part of all or certain borrowings for the company and subsidiaries.
Hexagon plans to deploy Rs 15 crore for funding incremental working capital requirements and Rs 19.17 crore to back capital expenditure requirement for expanding existing facility. Besides, Rs 7.15 crore will be invested in subsidiary and financing capital expenditure at the existing facility and general corporate purposes.
Founded in 1993 by Arun and Subash Kelkar, HNL started as a micro-nutrient formulations player and at present it offers products across clinical products, micronutrient premixes and therapeutic products.
Its product portfolio includes fortification of foods, therapeutic nutrition, clinical nutrition and alleviation of malnutrition.
The company sells its products in around 70 countries, currently from its three factories located at Nasik, Chennai and Thoothukkudi.
In 2016, Somerset Indus Healthcare Fund-I along with Mayur Anand Sardesai, an advisor and director at Somerset Health Capital Advisors, bought a 10% stake in the company for Rs 25 crore.
Somerset is an offshore private equity firm focused on making healthcare investments in India, which raised the fund during 2012.
Hexagon said that its revenue from operations grew 3.01% to Rs 209.97 crore for fiscal 2021 against Rs 203.84 crore for fiscal 2020, while its net profits grew by 23.10% from Rs 18.57 crore in FY20 to Rs 22.86 crore in FY21.
Equirus Capital Private Limited and SBI Capital Markets Limited are joint bookrunners for the IPO.
