Agrochemical company India Pesticides is expected to finalise the basis of allotment in the coming week after successfully closing its public offering. This was the last IPO in the first half of CY21.
The company opened its offer for subscription on June 23 and closed the same on June 25 after being subscribed 15 times aided by all kind of investors.
The portion set aside for retail investors was subscribed 10 times, and that of non-institutional investors 15 times. Qualified institutional buyers had put in bids 13 times their reserved portion.
The company raised Rs 800 crore through offer that comprised a fresh issue of Rs 100 crore and an offer for sale of Rs 700 crore by promoter and other selling shareholders. The net funds raised from fresh issue will be utilised for working capital requirements and general corporate purposes.
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India Pesticides will finalise the share allotment around June 30. Investors can check their application status on the website of IPO registrar, in few easy steps.
One has to select IPO name - India Pesticides Limited - in the dropdown and select either Application number, or DPID/Client ID or PAN. Accordingly one has to select Application Type (ASBA/NON ASBA) and enter Application Number, or select NSDL/CDSL and enter DPID & Client ID, or enter PAN Number. Finally enter Captcha and submit to know the application status.
The share allotment status can also be checked on the BSE website. Investor has to select Equity and Issue Name (India Pesticides Limited), then enter Application number and PAN number, and finally click on search button.
The number of shares applied for and number of shares subscribed to will be appeared on the screen if the abovementioned information provided by an investor is correct.
After the finalisation of allotment, the funds will be refunded around July 1 and equity shares will be credited to demat accounts of eligible investors, as per the schedule available in the prospectus.
And finally the trading in equity shares will commence with effect from July 5.
On June 25, the company shares traded in grey market at a premium of Rs 50, i.e. a price of Rs 346 (including premium), which is 17 percent higher compared to expected final issue price of Rs 296.
"If we look at the listing gain opportunity in this IPO, we expect a gains of around 10-20 percent as the company is fundamentally strong and available at better valuation than its peers," said Yash Gupta, Equity Research Associate at Angel Broking.
India Pesticides is one of the leading agrochemicals manufacturers in India, operating two business verticals - Technicals and Formulations.
It manufactures herbicide, fungicide Technicals, and active pharmaceuticals ingredients (APIs). It is the sole Indian manufacturer of several Technicals like folpet, thiocarbamate, and herbicide. It has recorded 37.2 percent YoY growth in Technicals manufacturing (by volume) between FY20 and FY21, while the revenue generated from exports contributed to 56.71 percent of the total revenue in FY21.
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