Hexagon Nutrition IPO : Details, Price Band, Lot Size and Company Overview

About Hexagon Nutrition:

Hexagon Nutrition Ltd. is a nutrition focused healthcare company engaged in manufacturing and developing clinical nutrition products, micronutrient premixes, therapeutic formulations, and food fortification solutions. Established in 1993, the company operates across consumer nutrition, institutional nutrition, and industrial nutrition segments, serving both domestic and international markets. Its offerings cater to preventive healthcare, wellness, disease management, and malnutrition focused interventions.

The company has a diversified manufacturing footprint with facilities located in Maharashtra, Tamil Nadu, and Uzbekistan. Two of its Indian units are situated in Special Economic Zones, providing operational efficiencies through export oriented infrastructure and access to duty benefits. Hexagon’s portfolio spans branded wellness products, premix solutions for food and pharmaceutical companies and ready to use nutritional products targeted toward public health and ESG driven nutrition programs.

The company has developed an extensive distribution ecosystem through pharmacies, hospitals, e-commerce platforms, and institutional channels. Its branded portfolio includes products such as Pentasure, Obesigo, Pediagold, and Nutrone. Internationally, Hexagon Nutrition has established operations through overseas offices and exports products to over 75 countries across Asia, Africa, Europe, and South America. Its growth strategy is supported by dedicated in house R&D facilities focused on nutrition science, formulation development, and product innovation.

IPO Synopsis:

Objective of the Issue:

The company will not receive any proceeds from the offer since the entire issue is OFS.

Strengths:

• High Repeat Business and Customer Retention:

The company has maintained a repeat business contribution of nearly 55% over the past three fiscal years across its B2C, B2B2C, and ESG segments. Long standing customer relationships across clinical nutrition, food fortification, and public health programs provide revenue visibility, operational stability, and demonstrate strong product acceptance and customer satisfaction.

• Established Nutrition Brand with Global Presence:

Hexagon Nutrition has built recognised in house brands such as Pentasure, Obesigo, and Pediagold, catering to specialised nutrition therapies including diabetes, renal, hepatic, and bariatric care. The company operates across 75+ countries, is among India’s leading premix manufacturers, and is one of the largest licensed suppliers of micronutrient powders under UN nutrition programs.

• Improving Financial Performance and Margin Expansion:

The company has demonstrated consistent financial improvement over the last three fiscal years, supported by rising operational efficiency. EBITDA margins improved from 6% to 13%, while PAT margins increased from 2% to 10%. Return ratios have also strengthened, with ROE and ROCE improving to approximately 12% and 14%, respectively.

Risks:

• Low Capacity Utilisation Across Key Product Categories:

Despite investing in manufacturing expansion, capacity utilisation across several product categories has remained relatively low, ranging between 25%-40% over the past three fiscal years. While clinical nutrition products have achieved higher utilisation due to stronger demand, other segments continue to operate below optimal levels, indicating that capacity additions have outpaced demand growth. Sustained underutilisation may impact operating leverage and return on capital employed in the long run.

• Rising Trade Receivables and Working Capital Intensity:

The company has witnessed a consistent increase in trade receivables over the last three fiscal years, with receivables accounting for approximately 20-30% of annual sales. Elevated receivable levels increase working capital requirements and expose the business to collection delays and potential credit losses during periods of economic stress, which could adversely impact cash flows and financial flexibility.

• Geographical Concentration of Revenue:

A significant portion of revenue, approximately 55-60%, is derived from four states: Maharashtra, Gujarat, Karnataka, and Tamil Nadu. While this reflects the company’s strong presence in key markets, it also exposes the business to regional demand fluctuations, competitive pressures, and local economic disruptions. Greater geographical diversification would improve revenue stability and reduce dependence on a limited set of markets.

Financial Snapshot (Rs. In Crores):