Shares of Hexagon Nutrition, which manufactures nutritional products and supplements, listed at a premium of 7% over its initial public offering (IPO) price on Friday, June 12.
Hexagon Nutrition share price listed at ₹48.25 on the NSE, a premium of ₹3.25 or 7.22% over its offer price of ₹45. Meanwhile, on BSE, the stock opened ₹3 or 6.67% higher at ₹48.
The stock extended gains to hit the 5% upper price band soon after its debut. On NSE, it rose to ₹50.66 and on BSE to ₹50.39.
The listing was largely in line with expectations as signalled by the grey market premium. Ahead of the listing, Hexagon Nutrition IPO GMP was ₹2.75 per share, suggesting a listing pop of around 6%.
Hexagon Nutrition IPO details
Hexagon Nutrition IPO, open for bidding from June 5 to June 9, garnered a solid 53.68 times bids from investors.
The non-institutional investor (NII) portion was booked the most at 161.49 times. It was followed by the retail quota, which received 26.85 times bids, and the qualified institutional buyer (QIB) segment, which was subscribed 19.77 times.
In the IPO, 50% of the offer was reserved for QIBs, 15% for NIIs and 35% for retail investors.
The ₹138.87-crore Hexagon Nutrition IPO was entirely an offer for sale of 3.09 crore shares, meaning that no proceeds from the share sale will be received by the company and will instead go to the selling shareholders.
The price band for Hexagon Nutrition IPO was set at ₹42 to ₹45 per share. Investors could apply for the offer in lots of 333 shares.
What should investors do with Hexagon Nutrition shares?
Mahesh Ojha, VP – Research and Business Development at Kantilal Chhaganlal Securities Pvt. Ltd noted that at the upper price band of ₹45, Hexagon Nutrition IPO is valued at a P/E of around 25.7x based on FY25 earnings.
“This looks fairly valued. Allotted investors are advised to hold from a medium to long-term perspective. However, limited listing gain can be expected, and hence, fresh investors should wait for further quarterly earnings for fresh investment,” said Ojha.
Shivani Nyati, Head of Wealth at Swastika Investmart, also advised holding the stock with a 2-3 year horizon, saying the company has demonstrated strong improvement in margins and profitability, indicating that the business is moving in the right direction.
She, however, flagged risks like the IPO being entirely an OFS, low capacity utilisation, and dependence on a limited set of business segments. “Therefore, while short-term upside may be limited, Hexagon Nutrition stock offers a better risk-reward proposition as a long-term small-cap growth story rather than a quick listing-gains play,” said Nyati.
Cumulative Capital Pvt. Ltd. is the book-running lead manager and Kfin Technologies Ltd. is the Hexagon Nutrition IPO registrar.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
