Harshdeep Hortico LTD IPO: Review, Valuation, Date & GMP

Harshdeep Hortico Limited IPO  - Complete Overview

Harshdeep Hortico Limited, founded in December 2022, creates and sells a diverse range of pots and planters. Their products include plastic indoor/outdoor planters, illuminated and decorative planters, roto-moulded and FRP planters, along with an eco-friendly series. They've recently expanded into roto-moulded outdoor furniture.

The company has ISO certifications for quality, environmental management, and occupational health and safety. They offer over 500 variants of pots, planters, and accessories in various sizes and colours.

With manufacturing units in Bhiwandi and Pune, Maharashtra, and stores in Delhi, Pune, and Rajahmundry, Andhra Pradesh, the company also has exclusive distributors in Hyderabad, Kolkata, Chandigarh, and Visakhapatnam. They employ an omnichannel approach, selling through their website, Amazon, Flipkart, and social media.

The company, led by Hitesh Chunilal Shah and Harshit Hitesh Shah, exports products to various countries, contributing to revenue. Their manufacturing capabilities include rotational moulding, injection moulding, and blow extrusion machines.

As of September 30, 2023, the company had over 125 employees, and its business model, leadership, and market presence showcase a robust and dynamic enterprise in the pots and planters industry.

 

Their main products are:

• Illuminated planters

• Rotational Moulded Planter Series

• Indoor Series

• Decorative Series

• Grower Planter Series

• FRP Series

• Eco Series

(Indoor Series)

(Decorative Series)

(Illuminated planters)

 

 

Harshdeep Hortico Limited IPO Overview

Harshdeep Hortico Limited IPO date is slated to be open for subscription from January 25, 2024, to January 30, 2024. This BSE SME IPO follows a Book Built Issue IPO.

Harshdeep Hortico Limited IPO price is fixed at Rs. 42 - Rs. 45 per share per share..

The total issue size of this IPO amounts to Rs.19.09 CR. The company has reserved 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors. 

 

Harshdeep Hortico Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	25 January 2024
IPO Closing Date	30 January 2024
IPO Allotment Date	31 January 2024
Refund initiation	1 February 2024
IPO Listing Date	2 February 2024

 

Harshdeep Hortico Limited IPO Details

IPO Opening & Closing Date	25 January to 30 January 2024
Face value	Rs. 10 per share
Issue Price	Rs. 42 - Rs. 45 per share
Lot Size	3000 Shares
Price of 1 lot	Rs. 1,35,000
Total Issue Size	4,242,000 Shares (aggregating up to Rs. 19.09 Cr)
Fresh issue	4,242,000 Shares (aggregating up to Rs. 19.09 Cr)
Listing at	BSE SME
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

 

Harshdeep Hortico Limited IPO Lot Details

Application	Lot	Shares
Minimum Lot Investment (Retail)	1 lot	3,000
Maximum Lot Investment (Retail)	1 lot	3,000
Minimum Lot Investment (HNI)	2 lot	6,000

 

Harshdeep Hortico Limited IPO Reservation

QIB Shares Offered	Maximum 50%
Retail Shares Offered	Minimum 35%
Other Shares Offered	Minimum 15%

 

 

Company Financial

As of March 31, FY23, the company is financially strong, with substantial assets, revenue, and net worth, and it has positive profits despite having some borrowings.

(Amount In Lakhs)

Period	July 31, FY 23	Mar 31, FY 23
Total Assets	3,059.49	4.89
Total Revenue	1,482.84
PAT	177.24	-0.27
Net worth	1,325.82	4.73
Reserve & Surplus	1,318.85	-0.27
Total Borrowings	636.82

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Paying back loans the company took.

• Covering day-to-day operational needs.

• Using funds for general business purposes.

 

Promoters and Management of Harshdeep Hortico Limited IPO

1. Mr. Hitesh Chunilal Shah

Pre-issue Promoter Shareholding	97.38%
Post-issue Promoter Shareholding

 

Harshdeep Hortico Limited IPO Lead Managers

•  Hem Securities Limited

 

 

Peers of Harshdeep Hortico Limited IPO

There are no listed companies in India that are engaged in a business line similar to that of their company, thus it is not possible

to provide an industry comparison in relation to their company.

 

Evaluation

The IPO is priced within the range of Rs. 43 to Rs. 45 per share.

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 1.50 from the last year, the resulting P/E ratio is 30x.

As a result, the IPO price range, with a P/E ratio of 30x seems bit undervalued in comparison to the industry average of 37.3x.

 

Dividend Policy

The company has not distributed dividends in previous fiscal years. The decision regarding future dividend payments will hinge on factors such as profitability, historical dividend patterns, capital requirements, legal constraints, and other pertinent considerations that will be assessed by our Board.

 

IPO's Strengths

• Diverse range of products across consumer preferences.

• Consistent focus on Quality

• Revenue from multiple geographies

• In-house Manufacturing capabilities

• Experienced and Qualified Management

 

IPO's Weaknesses

• Changes in consumer demand

• Impact of government policy changes leading to increased taxes

• Meeting obligations for existing debt and covenants

• Adverse outcomes in legal proceedings

• Concentration of ownership among promoters

• Performance of financial markets in India and globally

 

 

IPO GMP Today

The Latest GMP of Harshdeep Hortico Limited IPO is Rs.32.

 

Conclusion

In conclusion, Harshdeep Hortico Limited, a player in the pots and planters industry, is set to launch its IPO from January 25, 2024, to January 30, 2024. With a diverse product range, an omnichannel distribution strategy, and a strong market presence, the company aims to raise Rs. 19.09 Crores through this Book Built Issue IPO. 

The IPO price is set at Rs. 42- Rs. 45 per share, and the company plans to utilize the funds for debt repayment, working capital, and general corporate purposes. While the IPO offers a diverse product line and in-house manufacturing capabilities, potential investors should carefully evaluate the company's financials and industry dynamics before making investment decisions.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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