IPO (Representative image)
Agrochemical technical company India Pesticides has received the approval from capital markets regulator Sebi to go ahead with initial public offering.
The public offer comprises a fresh issue of Rs 100 crore and an offer for sale of Rs 700 crore by selling shareholders.
As per the DRHP, the company may decide to undertake a pre-IPO placement of Rs 75 crore. If the company raises funds through pre-IPO placement issue, the fresh issue size will be reduced accordingly.
The company will utilise net proceeds from its fresh issue for its working capital requirements.
India Pesticides is a R&D driven agro-chemical manufacturer of technicals with a growing formulations business. It was among the
fastest growing agro-chemical companies in India in terms of volume in FY20, and was also the sole Indian manufacturer and among top five manufacturers globally for several technicals, such as, folpet and thiocarbamate herbicide.
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Since commencing the operations in 1984, the company has diversified into manufacturing herbicide and fungicide technicals and active pharmaceutical ingredients (APIs). It also manufactures herbicide, insecticide and fungicide formulations.
Its technicals are primarily exported and revenue generated from exports contributed to 62.12 percent of revenue in FY20 and 65.73 percent of revenue in the six months period ended September 2020.
The company has a diverse customer base that includes crop protection product manufacturing companies, such as, Syngenta Asia Pacific Pte, UPL, Ascenza Agro, Conquest Crop Protection Pty Ltd, Sharda Cropchem, and Stotras Pty Ltd.
India Pesticides currently has two manufacturing facilities located at UPSIDC industrial area at Lucknow and Sandila, Hardoi in Uttar Pradesh. As of September 2020, its aggregate installed capacity of manufacturing facilities for agro-chemical technicals was 19,500 MT and formulations was 6,500 MT.