Hexagon Nutrition IPO: 10 Key Takeaways from the Registration Document Ahead of Listing

Hexagon Nutrition IPO Set to Open for Bidding on Friday

Hexagon Nutrition, a differentiated and research-oriented pure play nutrition company, is set to open its initial public offering (IPO) for bidding later this week on Friday, 5 June, with an aim to raise ₹139 crore. The offer will close on 9 June.

This will be the first mainboard offering to hit Dalal Street in a month, following OnEMI Technology Solutions, which closed on 5 May. So far this year, only 20 IPOs have opened for bidding, with the market sentiment impacted by the ongoing conflict in the Middle East. The three-month-long conflict has pushed the Nifty 50 down 10.15% on a year-to-date basis.

The grey market activity for this upcoming IPO remains absent, with Hexagon Nutrition IPO's grey market premium (GMP) at nil, suggesting a listing at par with the offer price so far.

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Key Highlights of Hexagon Nutrition IPO

Ahead of the offer launch, here are key things to know about Hexagon Nutrition IPO from the company's red herring prospectus (RHP):

The IPO is entirely an offer for sale of up to 30,859,704 shares, with no fresh issue component. This means all proceeds from the offer will go to the company.

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Promoters, including Arun Purushottam Kelkar, Subhash Purushottam Kelkar, Aditya Kelkar, and Nutan Subhash Kelkar, are offloading shares in the IPO.

The company's revenue from operations rose 9% year-on-year (YoY) to ₹324.92 crore for the financial year ended 31 March 2025. The profit after tax (PAT), meanwhile, jumped 99.5% YoY in FY25 to ₹24.3 crore from ₹12.2 crore in FY24.

Financial Performance of Hexagon Nutrition

The company operates three manufacturing facilities in India, located in Nashik (Maharashtra), Chennai (Tamil Nadu), and Thoothukudi (Tamil Nadu), along with one international manufacturing facility in Tashkent, Uzbekistan.

Hexagon Nutrition also boasts a large export market, having exported its products to over 75 countries, including South Africa, Malaysia, Ethiopia, France, French Polynesia, Ghana, Indonesia, Kenya, Madagascar, Mozambique, Papua New Guinea, Nigeria, Philippines, Qatar, UAE, Mauritius, Brazil, amongst others.

Risks Associated with Hexagon Nutrition

A large portion of the company's revenue comes from a limited number of customers, exposing it to concentration risk. The top 10 customers accounted for 45.87% of the revenue in FY25.

The company does not have long-term contracts with the raw material suppliers, and volatility in raw material prices or adverse sourcing conditions may adversely impact the operations, profitability, and financial performance.

Book Running Lead Managers and Registrar

Cumulative Capital and Catalyst Capital Partners are the book-running lead managers for the offer, while KFin Technologies is the registrar for the offer.