GMP indicates favorable sentiment
Early gray market trends indicate positive investor sentiment towards the initial public offering (IPO) of research-oriented pure-play nutrition company Hexagon Nutrition, which is scheduled to open for public subscription on Friday, June 5, 2026.
Through its maiden share sale, the company aims to raise ₹138.87 crore entirely through an offer-for-sale (OFS) issue. The offer involves the sale of 30.9 million equity shares by promoters Arun Purushottam Kelkar, Subhash Purushottam Kelkar, Aditya Kelkar and Nutan Subhash Kelkar.
Before the issue opened, Hexagon Nutrition’s unlisted shares were reportedly trading at ₹55 per share in the gray market, representing a premium of about ₹10 or 22.22 per cent over the upper end of the IPO price band of ₹45 per share, according to sources tracking informal market activity.
Hexagon Nutrition IPO Details
Hexagon Nutrition has set the price band for its public issue at ₹42-₹45 per share, with a lot size of 333 shares. Investors can bid for a minimum of 333 shares and then in multiples of shares. At the upper price band, retail investors will have to invest a minimum of ₹14,985 for a single lot, while the maximum permissible retail application of 13 lots (4,329 shares) will require an investment of ₹1,94,805.
Hexagon Nutrition IPO will be open for subscription till Tuesday, June 9, 2026. The basis of allotment is expected to be finalized on Wednesday, June 10, while the shares are likely to be credited to the demat accounts of successful applicants on Thursday, June 11. The company’s shares are scheduled to be listed on stock exchanges on Friday, June 12, 2026.
KFin Technologies is the registrar to the issue, while Cumulative Capital and Catalyst Capital Partners are acting as book-running lead managers.
The IPO is purely an offer-for-sale (OFS), through which the company aims to raise ₹138.87 crore by selling 30.9 million equity shares. According to the red herring prospectus (RHP), promoter group members Arun Purushottam Kelkar, Subhash Purushottam Kelkar, Aditya Kelkar and Nutan Subhash Kelkar will participate in the OFS.
Since the issue involves only OFS, Hexagon Nutrition will not receive any proceeds from the public offering.
“Our company will not receive any proceeds from the Offer (‘Offer Proceeds’) and all such Offer Proceeds (net of any Offer-related expenses borne by the Selling Shareholders) will pass to the Selling Shareholders in proportion to the Offer Shares sold by the relevant Selling Shareholder as part of the Offer,” the company said in its RHP. Read | KuCoo files confidentially for ₹3,500 crore IPO, eyes valuation of ₹15,000 crore
Should you subscribe to Hexagon Nutrition IPO?
Equivision – may apply
Brokerage firm Equivision has given ‘May Apply’ rating to the IPO. According to the brokerage, at the upper price band of ₹45 per share, Hexagon Nutrition is valued at a price-to-earnings (P/E) ratio of 25.71x and a price-to-book (P/B) ratio of 2.83x based on FY20 earnings.
“Considering its diversified nutrition portfolio, established manufacturing footprint and industry position, the issue appears to be fairly priced relative to listed peers,” the brokerage said.
Equivision highlighted that the company is a leading micronutrient formulation player backed by strong research and development capabilities, scalable manufacturing operations and a strong pan-India omnichannel distribution network.
The brokerage said the company’s focus on innovation and new product development positions it to capitalize on emerging health and wellness trends.
Swastik Investmart – Apply for Long Term Investors
Swastika Investmart has recommended that investors apply for IPOs only if they have a holding horizon of two to three years, while those seeking quick listing gains have been advised to avoid the issue.
The brokerage described Hexagon Nutrition as a good business but cautioned that it remains a small-cap investment with associated risks.
Swastika highlighted that the company’s margins and profitability have steadily improved while maintaining a low debt profile. EBITDA margins expanded from 6.2% in FY23 to 14 per cent in the first nine months of FY26, while profit after tax has almost quadrupled in the last two years. The debt-to-equity ratio is 0.18.
“At 23x P/E, the issue is not priced as high as peers. However, peers are much larger companies, making direct comparison less meaningful. The entire IPO is promoter selling, no funds coming into the company. Promoters are exiting at 35-93x their acquisition cost,” the brokerage said.
Swastika also noted that the company’s factories are operating at only about 30% capacity utilization, while dependence on a single business segment and some past compliance issues remain a matter of concern.
