Harshdeep Hortico Limited’s IPO includes a fresh Issue of up to 42,42,000 equity shares. The IPO is worth INR 19.09 crores. The company intends to use the funds raised to repay/prepay loans, fulfill working capital needs, and address general corporate purposes.

Harshdeep Hortico IPO – Important Details

Harshdeep Hortico Ltd IPO – Company Profile

Harshdeep Hortico specializes in designing, manufacturing, and supplying various planters, including plastic indoor and outdoor planters, illuminated and decorative planters, roto-molded and FRP planters, and accessories like garden hose pipes. Additionally, they have expanded into roto-moulded outdoor furniture.

Founded in December 2022, Harshdeep Hortico originated from the proprietorship “M/s Harshdeep Agro Products.” Promoter Hitesh Chunilal Shah, now Director, oversees operations. The Company acquired the business in April 2023, specializing in quality pots and planters.

Their company markets products in 27 Indian states & Union Territories, with a significant revenue share from Maharashtra. Historically, exports to Djibouti, East Africa, the UK, and Nepal have contributed 1.85% and 2.02% of fiscal 2023 and 2022 revenues, respectively.

Harshdeep Hortico IPO – Fundamental Analysis

Harshdeep Hortico Ltd’s IPO shows revenue growth until 2022, followed by a 2023 decline. Fluctuating Return on Net Worth is noteworthy. Growing assets and liabilities suggest stability, but the 2023 revenue dip merits scrutiny. Invest cautiously and conduct due diligence.

Revenue

Revenue represents the total sales generated by the company. Over the three years, the company has shown consistent growth in revenue, which is a positive sign. The revenue has increased from ₹2,519.05 lakhs in 2021 to ₹4,076.70 lakhs in 2023, indicating a growth trend.

Expenses

As of March 31, 2021, the company reported expenses of ₹2,263.47 million, which increased to ₹3,173.61 million as of March 31, 2022, and further escalated to ₹3,806.12 million as of March 31, 2023. 

Profit and Loss After Tax

This metric indicates the company’s profitability. While the company has shown a growth in revenue, the profit after tax has fluctuated. It increased from ₹199.73 lakhs in 2021 to ₹247.75 lakhs in 2022 but then decreased to ₹222.86 lakhs in 2023. Investigating the reasons for this decrease in profitability in 2023 is important.

Return on Net Worth (RoNW)

RoNW measures the company’s ability to generate profits relative to its net worth (equity). The RoNW has fluctuated, reaching a peak of 29.64% in 2022 but declining to 23.73% in 2023. This suggests that the company’s profitability in relation to its net worth has decreased, which could be a concern for investors.

Total Assets and Liabilities

The total assets of Harshdeep Hortico Ltd have shown consistent growth over the three years, increasing from ₹1,816.48 lakhs as of March 31, 2021, to ₹2,279.31 lakhs as of March 31, 2023. Similarly, the total liabilities have followed the same trend, indicating a balanced financial structure and stability within the company’s balance sheet during this period.

Harshdeep Hortico Ltd IPO Financial Information

Harshdeep Hortico IPO Peer Comparison

There are no listed companies in India that are engaged in a business line similar to that of Harshdeep Hortico. Thus, it is not possible to provide an industry comparison in relation to their company.

Harshdeep Hortico Ltd IPO Objective

The main objective of Harshdeep Hortico’s IPO is to allocate the funds for debt repayment, reduce costs, and use internal accruals for expansion. Additionally, the company will deploy funds to meet its working capital needs.

1. Repayment of borrowings availed by the Company: The Company proposes to utilize an estimated amount of INR 4.07 crores from the proceeds towards repayment of borrowings availed from the lenders. The Company aims to reduce debt, lower costs, and use internal accruals for expansion.

2. Working Capital: The proposal is to utilize INR 9 crores from net proceeds and additional borrowings to meet working capital requirements. The company addresses working capital needs, focusing on trade receivables, inventories, and day-to-day operations, which are crucial for business expansion and sustained operations.

3. General Corporate Purpose: The Company plans to deploy the balance funds towards the general corporate goals, including funding operations, development costs, enhancing business capabilities, meeting unforeseen difficulties, or other purposes as necessary.

Harshdeep Hortico Ltd IPO Risks and Challenges

Harshdeep Hortico’s risks include regional dependence and challenges in market expansion. Uncertainties in raw material supply and reliance on a trademark without a formal agreement pose potential threats to production and brand image.

Harshdeep Hortico, heavily reliant on Maharashtra for revenue, confronts risks from local factors. Expanding into new markets poses challenges, competing with established players. Investors must assess risks despite management’s optimism about future growth.

• The Company’s reliance on a few critical suppliers without long-term contracts raises uncertainties in ensuring a consistent and cost-effective raw material supply, potentially impacting production schedules, sales, and customer relations.
• The Company utilizes a trademark owned by the Promoter & Managing Director without a formal agreement. Reliance on a No Objection Certificate (NOC) poses a risk, as non-renewal or revocation could impact brand image and legal protection.

Harshdeep Hortico Limited IPO – Industry & Market Potential

India’s manufacturing sector, comprising key industries such as automotive and pharmaceuticals, aims to contribute 25% to GDP by 2025, leveraging digital transformation and Industry 4.0 initiatives to become a global hub, supported by the ‘Make in India’ program for job creation.

India’s manufacturing exports achieved a record US$ 447.46 billion in FY23, displaying 6.03% growth from FY22, contributing to the nation’s potential as a global manufacturing hub. At the same time, the growing middle class anticipates significant GDP and sectoral growth by 2030.

India is an appealing destination for foreign investments in manufacturing, with various brands establishing bases. The sector aims to reach US$ 1 trillion by 2025, leveraging initiatives like SAMARTH Bharat 4.0 and industrial corridors for enhanced competitiveness and holistic development.

Harshdeep Hortico Ltd IPO – Type of Offer

Harshdeep Hortico will issue 42,42,000 new shares aggregating to INR 19.09 crores. This fund will repay/prepay loans, fulfill working capital needs, and address general corporate purposes.

Harshdeep Hortico Ltd IPO Offer Size

The offer size of Harshdeep Hortico’s IPO is INR 19.09 crores, consisting of a fresh issue of 42,42,000 shares.

Harshdeep Hortico Limited IPO Allotment Structure

Harshdeep Hortico’s IPO will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) in accordance with SEBI regulations. 

●     Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

●  Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

●      Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.

How to apply for Harshdeep Hortico IPO?

To apply for the Harshdeep Hortico IPO through Alice Blue, you would typically follow these steps:

1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.

2. Check for IPO Details: Once your account is active, you can check for the Harshdeep Hortico IPO details in the IPO section of the Alice Blue platform.

3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.

4. Submit the Application: Confirm all your details and submit your application.

  You can apply for Harshdeep Hortico IPO at Alice Blue in just a few clicks!

Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to Check Harshdeep Hortico IPO Allotment Status on Alice Blue?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section. 
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Harshdeep Hortico IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Harshdeep Hortico IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.

Apart from Alice Blue, there are other ways to check the allotment status of the Harshdeep Hortico IPO:

 ● Registrar’s Website: Visit the website of Link In time India Private Limited, the registrar of the Harshdeep Hortico IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) SME (Small Medium Enterprise) Platform. You would need your application number and PAN to check the status.

Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.

 Harshdeep Hortico Limited IPO Offer Registrar

 The registrar for the Harshdeep Hortico Limited IPO is Link In time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

 Contact information for the registrar:

 Link In time India Private Limited

C-101, 247 Park,

L. B. S. Marg, Vikhroli (West),

Mumbai – 400 083

Maharashtra, India

Tel. No.: +91 810 811 4949

Email: [email protected]

Website: www.linkintime.co.in

Harshdeep Hortico IPO FAQs