Agrochemicals maker Heranba Industries Limited (HIL) made a stellar 44% listing gains on the stock exchanges Friday, second-best amongst the past 10 IPOs.

Company's shares were listed on BSE and NSE at ₹900, 43.54 per cent gain over the issue price of ₹627 per share. The stock hit a high of ₹945 during initial trades before ending the session at ₹826 on NSE.

Heranba's listing gains were second-highest after RailTel Corporation of India’s issue, which was listed on February 26, 2021 with 46% gains.

Broker sources informed that the listing gains were in line with Dalal street’s expectations as the public offer by the Mumbai-headquartered agrochemicals industry had received a thumping response from retail, institutional and non-institutional investors. It raised ₹625 crore through the IPO, which was oversubscribed by 83 times.

Commenting on the listing of the stock, Hemang Jani, Head Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services, said, "At the current market price, the stock is valued at PE of ~37x of FY20 earnings and 27x FY21E on an annualized basis." "During FY18-20, its revenue witnessed 13% CAGR, while PAT grew at 44% CAGR, led by EBITDA margin expansion from 12.5% in FY18 to 15.3% in FY20. RoE has been consistent and healthy at ~30%," he said, pointing at the company's strong financials and business fundamentals.

The company shares traded with heavy volumes on debut. NSE data showed total of 1.65 crore shares were traded, of which the deliverable quantity was 47.91 lakh shares. On BSE, the total volume was 17 lakh shares on Friday.

Heranba Industries is one of the leading domestic producers of synthetic pyrethroids, with ~20% market share. The company has over 9400 dealers/distributors in India.

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