R&D focused Hexagon Nutrition files for Rs. 600 cr IPO

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R&D focused Hexagon Nutrition files for Rs. 600 cr IPO

Fresh issue, OFS combo

Health, nutrition product company Hexagon Nutrition sells its products in around 70 countries

MUMBAI, Dec 24 (The CONNECT) – Mumbai-based R&D focused health and nutrition product company Hexagon Nutrition Limited (HNL), has filed its draft red herring prospectus (DRHP) with capital market regulator Sebi to raise funds through an initial public offering (IPO).

The IPO with a face value of Rs. 1 per equity share consists of a fresh issue of equity shares aggregating to Rs. 100-crore, and an offer for sale of up to 30,113,918 equity shares.

As per market sources, the issue size will be approximately in the range of Rs. 500-600 crore.

The proceeds from its fresh issuance worth Rs. 33.5 crore will be utilised for the repayment or prepayment of borrowings, in full or part of all or certain borrowings for the company and subsidiaries; Rs. 15.00 crore for funding incremental working capital requirements; Rs. 19.17 crore for funding capital expenditure requirement for expanding existing facility; Rs. 7.15 crore for investment in subsidiary and financing capital expenditure at existing facility and general corporate purposes.

In 2016, Somerset Indus Healthcare Fund-I, along with Mayur Anand Sardesai, an advisor and director at SomeRs.et Health Capital Advisors, had invested Rs. 25 crore for a 10% stake in the company. Somerset is an offshore private equity firm focused on making healthcare investments in India.

Founded by Arun and Subash Kelkar in 1993, Hexagon Nutrition started as a micro-nutrient formulations player, and today it has moved up the value chain to develop brands like Pentasure, Obesigo and Pediagold which are leading names in the health, wellness, and clinical nutrition space. It is the only holistic nutrition player that 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, made currently at its three factories located at Nasik, Chennai, and Thoothukkudi.

Revenue from Hexagon’s operations grew 3.01% to Rs. 209.97 crore in the fiscal 2021 against Rs. 203.84 crore during fiscal 2020, primarily due to increase in demand for B2B2C and ESG segment and increase in volume of premixes and therapeutic foods sold, 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 the book running lead managers. to the issue.

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