Agro-chemical manufacturer, India Pesticides will open its initial public offering for subscription on June 23, 2021. The price band for the offer has been fixed at Rs 290-296 per share. The issue will close on June 25.
The company is planning to raise Rs 800 crore through its offer that comprises a fresh issue of Rs 100 crore and an offer for sale of Rs 281.4 crore by promoter Anand Swarup Agarwal and Rs 418.6 crore by other selling shareholders.
The net proceeds from the fresh issue will be utilised for working capital requirements (Rs 80 crore), and general corporate purposes, while the offer for sale money will go to selling shareholders.
Investors can bid for a minimum of 50 equity shares and in multiples of 50 equity shares thereafter.
India Pesticides is an R&D-driven agro-chemical manufacturer of technicals with a growing formulations business. It is one of the fastest growing agro-chemicals company in terms of volume of technicals manufactured.
The company has recorded 37.17 percent year-on year growth in technicals manufacturing (by volume) between FY20 and FY21, reaching more than 75 percent plant operating rate. It also manufactures herbicide, insecticide and fungicide formulations.
Technicals are primarily exported and revenue generated from these exports contributed to 56.71 percent of revenue from operations in FY21. As of March 2021, technicals are exported to over 25 countries including Australia and other countries in North and South America, Europe, Asia and Africa.
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Formulations products are primarily sold domestically through its extensive network of dealers and distributors. It has a diverse customer base that includes crop protection product manufacturing companies, such as, Syngenta Asia Pacific Pte, UPL, Ascenza Agro, S A, Conquest Crop Protection Pty Ltd, Sharda Cropchem and Stotras Pty Ltd.
Anand Swarup Agarwal and the ASA Family Trust are the promoters of the company, holding 46.97 percent pre-offer equity stake in the company.
Dhanuka Agritech, Bharat Rasayan, UPL, Rallis India, Rallis India, Atul and Sumitomo Chemical India are its comparable peers among the listed companies.
Axis Capital, and JM Financial are the book running lead managers to the issue.