Advanta India IPO opens for subscription

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Advanta India, an international agronomic seed company with principal operations in India, Australia, Thailand and Argentina, and a subsidiary of United Phosphorus, is open for subscription with an initial public offering, IPO of 33,80,000 equity shares of Rs 10 for cash at a premium to be decided through the 100% book-building process.

The price band is between Rs 600 and Rs 650 per equity share. The subscription to the issue closes on March 30, 2007. The issue will constitute 20.08% of the post-issue paid-up capital of the company. The shares will be listed on the National Stock Exchange and Bombay Stock Exchange. 

The issue is being made through the 100% book building process wherein at least 60% of the issue must be allotted on a proportionate basis to qualified institutional buyers (QIBs). Further, 5% of the QIB portion must be available for allocation to mutual funds only and the remaining QIB Portion must be available for allocation to the QIB bidders including mutual funds, subject to valid bids being received at or above the issue price.

Further, up to 10% of the issue must be available for allocation on a proportionate basis to non-institutional bidders and up to 30% of the issue must be available for allocation on a proportionate basis to retail individual bidders, subject to valid bids being received at or above the issue price. The company has allotted 1,677,000 equity shares to a group of investors at a price of Rs 625 per equity share under the pre-issue placement pursuant to a resolution of the board of directors dated February 23, 2007.

Headquartered in Bangalore, Advanta India is a wholly-owned subsidiary of United Phosphorus, one of the leading generic agrochemical companies in the world with operations in the United States, Australia, China , Latin America and Europe. The company has been reorganised into its current form following the acquisition by UPL of the businesses previously held by Advanta Netherlands Holdings B.V. and the amalgamation of Uniphos Seeds and Bio-Genetics Pvt. Ltd. The company, including its operating subsidiaries, is engaged in the research, production and sales of a range of hybrid seeds for cereals and oilseed crops; and is a global leader in technical plant breeding and in the application of biotechnology to develop new hybrids and varieties of field crops and broad acre vegetable seed products.

The group, with a dedicated research & development team of 128 employees worldwide, owns 39 registered trademarks (as of December 31, 2006) in various countries. Its R&D efforts are in superior breeding programmes and bioscience techniques that drive the development of a portfolio of elite, proprietary and differentiated germplasm. The group has a proprietary germplasm base that is fully integrated with its bioscience capabilities. It has developed a diverse portfolio of seed products including sunflower, corn, hybrid rice, canola, hybrid mustard, pearl millet and sorghum amongst others.

For the year ended March 31, 2006, the company posted unconsolidated income of Rs 435.44 million and profit after tax of Rs 44.52 million. During the seven month period ended October 31, 2006, the company posted unconsolidated income of Rs 598.79 million and profit after tax of Rs 282.38 million. The results for the seven month period ended October 31, 2006, include the business of USBPL, which was amalgamated with the company with effect from April 1, 2006. 

The book running lead managers to the issue are Yes Bank, UBS Securities India and SSKI Corporate Finance.