H.R. Hygiene Products IPO

About this issue

H.R. Hygiene Products listed at +2.3% against its issue price of ₹88. The book is 6.65 times subscribed overall. The grey market premium is +₹1 (+1.1%), which is an informal figure and not a quoted price. Our call is Risky, on 67% of our checks.

Segment

SME

Price

₹88

Lot size

1,600 shares

One lot costs

₹1,40,800

Issue size

₹51 Cr

Grey market premium

+₹1 (+1.1%)

Subscribed

6.65x

Listed at

+2.3%

Our call

Risky

What we checked

• Profitable in the latest yearPAT ₹11.41 Cr
• Profit grew year on yearPAT +26%
• Revenue grew year on yearRevenue +15%
• Borrowing under half of net worthDebt/net worth 0.51
• Return on net worth above 15%RoNW 26.9%
• Post-issue P/E under 40P/E 17.5
• Price to book under 6P/B 3.7
• Majority is fresh capital79% fresh issue
• Promoters keep at least half48.5% held post-issue
• Anchor investors participatedAnchor book placed
• Overall book more than 10× covered6.7× overall
• Lead manager above segment medianMarwadi Chandarana Intermediaries Brokers Pvt.Ltd.: 12 past issues, +22% avg vs +8% segment median

3 further checks could not be judged, because the issue did not disclose enough. They count neither for nor against.