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Aug 09, 2017 11:07 AM IST | Source: Moneycontrol.com

Delhi-based agrochem maker Crystal Crop plans IPO, bankers to pitch next week

The company is a manufacturer and marketer of insecticides, fungicides, herbicides, plant growth regulators and micro nutrients

Delhi-based agrochem maker Crystal Crop plans IPO, bankers to pitch next week

Dhirendra Tripathi

Moneycontrol News

Crystal Crop Protection, a Delhi-based maker of agrochemical products, plans to float an initial public offering (IPO) next year to raise Rs. 1000 crores, a merchant banker familiar with the development told Moneycontrol. Most of the capital raised will be through issue of fresh shares, he said.

Singapore-based Everstone Capital is the sole institutional investor in the company, accounting for a 3.5 percent stake, according to the banker. “It had a higher stake earlier but the promoters have bought back the stake over a period,” he said.

Merchant bankers are set to make a pitch to the company next week in search of a mandate.

Crystal Group’s web site says the company was established 34 years ago by Chairman Nand Kishore Aggarwal. The company is a manufacturer and marketer of insecticides, fungicides, herbicides, plant growth regulators and micro nutrients. It also exports these to more than 10 countries in Africa, West Asia and South East Asia.

Also read: Crystal Crop eyes 2-fold revenue jump at Rs 2,500 cr by 2020

The company makes agri equipment like spray pumps, tillers, harvesters and sowing machines. It is also a supplier of seeds for growing tomato, maize, brinjal, bitter gourd, okra and bajra.

The Indian crop protection market is dominated by insecticides, which form almost 60 percent of domestic crop protection chemicals market. The major applications are found in rice and cotton crops. Fungicides and herbicides are the largest growing segments accounting for 18 percent and 16 percent respectively of total crop protection chemicals market respectively, according to the annual report of Insecticides India, a large listed player in the market.

At present, per hectare consumption of pesticides in India is amongst the lowest in the world and stands at 0.6 kg/ha against 5-7 kg/ha in the UK and 13 kg/ha in China.
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