Harshdeep Hortico IPO aims to raise Rs 19.09 crores. The issue is entirely a fresh issue of 42.42 lakh shares. Harshdeep Hortico designs, manufactures and supplies pots and planters for indoor and outdoor use. Its product portfolio includes: indoor plastic planters, outdoor planters, illuminated planters, decorative planters, roto-moulded planters, fiber-reinforced plastic (FRP) planters, eco-series planters, etc.
IPO opens
Jan 29, 2024
IPO Closes
Jan 31, 2024
IPO Size (Rs.)
₹19.09 Cr
IPO Size (shares)
4,242,000 shares
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹42 to ₹45 per share
Minimum Lot
1200 Shares
Listing At
BSE SME
QIB
~6 % (less anchor)
NII Quota
~16%
Retail Quota
~36%
Lead Manager
Hem Securities Limited
Registrar
Link intime
Market maker
Hem Finlease
About Harshdeep Hortico:
They are primarily engaged in the business of designing, developing, manufacturing and supplying of various types of pots and planters like: plastic Indoor Planters, Outdoor Planters, Illuminated Planters, Decorative Planters, Roto Moulded Planters, Fiber Reinforced Plastic (FRP) Planters, Eco series Planters etc. along with related accessories like Garden Hose Pipe & Water Can.
Company was incorporated in December 2022, prior to which the Promoter, Hitesh Chunilal Shah was carrying on the business operations as a proprietorship concern under the name of “M/s Harshdeep Agro Products” to design and manufacture quality pots and planters.
The product portfolio comprises over 500 variants of pots, planters, and related accessories in multiple sizes and colors.
The products reach out 27 states and Union Territories in India and are also exported.
The company operates two manufacturing units in Bhiwandi and Pune, Maharashtra.
Financials: Harshdeep Hortico IPO
Particulars/ Rs. Lacs
July 31, 2023
March 31, 2023
Total Income
1,482.84
–
Profit after tax
177.24
-0.27
Equity Share Capital
6.97
5
Net Worth
1,325.82
4.73
Earnings per Share
1.5
–
Net Asset Value
11.19
0.04
Total Borrowings
636.82
–
Post issue Share Capital
1,609
FV
10
IPO price
45
EPS Fy23
–
PE Fy23
–
EPS Fy24 (annualized)
3.3
PE Fy24 (annualized)
13.6
Market cap in Lacs
7,240.5
Market Cap/sales
4.9
Anchors: Harshdeep Hortico IPO
Harshdeep Hortico IPO: Salient Points
The promoters current shareholding shall stand diluted to from 97.38% at present to 71.72%.
In the last few decades Floriculture in India has seen phenomenal growth. Due to the exceptional performance of the sector, it is expected to grow to $5.9 Bn by 2030 with a CAGR of 7.4% (2021-2030).
They have stores in Delhi, Pune (Maharashtra), and Rajahmundry (Andhra Pradesh), along with four exclusive distributors in Hyderabad, Kolkata, Chandigarh, and Visakhapatnam. The company employs an Omni-channel approach, utilizing its website, online marketplaces like Amazon and Flipkart, and social media platforms such as Facebook and Instagram for product promotion.
From there product portfolio, for the period ending July 31, 2023, the Roto Moulded Series, Grower Series, Indoor Series, FRP Series, and Gropo Series contributed 30.22%, 26.12%, 15.13%, 7.37%, and 6.80% to the total revenue, respectively. Other planter categories collectively contributed 14.36%.
The Net Proceeds are proposed to be utilized in the manner set forth below:
Sr. No.
Particulars
Amount (₹ in lakhs)
1.
Repayment and/or pre-payment, in full or part, of certain borrowings availed by our Company
407.94
2.
To meet Working Capital requirements
900.00
3.
General Corporate Purpose
rest
Key Performance Indicators of Company:
Key Financial Performance
Period ended July 31, 2023*
Financial Year ended March 31, 2023
Revenue from operations
1481.05
–
EBITDA
285.46
(0.27)
EBITDA Margin
19.27%
–
PAT
177.24
(0.27)
PAT Margin
11.97%
–
Company has diversified revenue from multiple geographical locations from various states in India. For the period from April 01, 2023 to July 31, 2023they generated around 88.93% of total revenue from sales in top 10 geographical regions in India. In this period, they sold products to around 27 states & Union Territories in India of which majority portion of the revenue comes from the state of Maharashtra which contributes 41.99% of total revenue followed by Andhra Pradesh which contributed 11.34% of total revenue. Apart from this, Karnataka contributed 7.78%, Delhi contributed 7.45%, Tamil Nadu contributed 5.57% and Gujrat contributed 5.45% of our total revenue from operations. The other 21 states and Union territories such as Haryana, Rajasthan, Madhya Pradesh, Kerala, Punjab, Telangana, Odisha, West-Bengal, Chhattisgarh etc. contributed approx. 20% of total revenue from operations.
The company had prior export experience to countries like Djibouti, East Africa, the United Kingdom, and Nepal, contributing 1.85% and 2.02% to the revenue for fiscal 2023 and 2022, respectively.
They intend to grow our business continuously by adding new customers.
Recently, they have also entered into the field of Roto Moulded Outdoor Furniture that designs outdoor illuminated furniture for gardens keeping in mind customer’s outdoor living area, offering options to accommodate gardens of any size or shape.
They have also introduced an Eco-friendly series of planters “Eco Series” which are planters crafted from a blend of sustainable materials, including rice husk and natural fibers.
Peers: None
Harshdeep Hortico IPO is coming at a PE ratio of 14x (fy24 annualized earnings)
I intend to apply in Harshdeep Hortico IPO subject to availability of funds.
GMP as reported on social media has been Rs. 15
Hem securities is the Lead Manager to the issue. The IPOs lead managed by them have given a good return to the investors. These include names like Shri Balaji Valve Components Limited, Shanti Spintex, SJ Logistics,Siyaram Recycling Industries Limited, Deepak Chemtex Limited, Paragon Fine And Specialty Chemicals, E Factor Experiences Limited, Arabian Petroleum Limited, ,Saakshi Medtech and Panels Limited, Kahan Packaging Limited, Asarfi Hospital Limited, Kaka Industries, Green Chef, Vasa Denticity, Chaman Mettalics, Hemant Surgicals, Labelkraft, Concord Control Systems Limited, Earthstahl & Alloys Limited, Silicon Rental Solutions Limited, Krishna Defence and Allied Industries, Prevest Denpro Limited etc.
SME IPO are much more risky and volatile than mainboard IPOs.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
