Hexagon Nutrition IPO Sees Strong Demand on First Day, Subscribes 1.65 Times Over, GMP Suggests Positive Listing Prospects

Hexagon Nutrition IPO Sees Strong Demand on Day 1

The initial public offering (IPO) of Hexagon Nutrition witnessed healthy demand from both retail and non-institutional investors on the first day of bidding on June 5. The IPO, which will remain open for subscription until Tuesday, June 9, received bids for 3.56 crore shares against the total offer size of 2.16 crore shares, translating into an overall subscription of 1.65 times by the end of Day 1, according to exchange data.

Among investor categories, the non-institutional investors (NII) segment saw strong interest, getting subscribed 2.03 times, while the retail investor portion was booked 2.43 times. The QIB portion has not yet opened for bidding, as per the exchange data. Ahead of the issue opening, the company raised ₹41.66 crore from anchor investors. Out of the total allocation of 92.57 lakh equity shares to anchor investors, 26.66 lakh equity shares — accounting for 28.82% of the anchor portion — were allocated to Bandhan Small Cap Fund, which was the only domestic mutual fund participant in the anchor book.

Hexagon Nutrition IPO Details

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The initial public offering (IPO) of Hexagon Nutrition is set to open for subscription tomorrow, Friday, 5 June, and will close on Tuesday, 9 June. The company, which aims to raise ₹139 crore from the issue, has fixed a price band of ₹42-45 per share. The IPO consists entirely of an offer for sale (OFS) of up to 30.86 million equity shares and does not include any fresh issue component. Existing shareholders Arun Purushottam Kelkar, Subhash Purushottam Kelkar, Aditya Kelkar, and Nutan Subhash Kelkar will dilute their holdings through the OFS.

The company has reserved 50% of the net issue for qualified institutional buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors (NIIs).

Hexagon Nutrition's GMP Signals a Strong Listing

As of today, the grey market premium (GMP) for the Hexagon Nutrition stands at ₹13 per share, suggesting that the stock is likely to list above its issue price. Based on this GMP and the upper price band, the estimated listing price for the stock stood at ₹58, reflecting a 29% premium. The GMP represents the expected difference between an IPO’s issue price and its anticipated listing price in the unofficial market. However, it’s essential to note that the GMP is merely an early indicator and should not be relied upon as the sole factor in investment decisions.

Read also: Hexagon Nutrition IPO Fully Subscribed on First Day with Strong Demand from Retail and Non-Institutional Investors

About Hexagon Nutrition

Founded in 1993, Hexagon Nutrition is a research-focused nutrition company offering micronutrient premixes, therapeutic nutrition products, and clinical nutrition solutions. The company provides exposure to India's growing nutrition, wellness, and micronutrient market, although investors should carefully evaluate the risks highlighted in the Red Herring Prospectus (RHP). In terms of financials, for FY25, revenue from operations increased 9% year-on-year to ₹324.92 crore from ₹297.7 crore in FY24. Profit after tax (PAT) surged 99.5% to ₹24.3 crore from ₹12.2 crore a year earlier. Margin performance remained healthy at 12.33% in FY25, compared with 8.36% in FY24 and 6.17% in FY23.