India Pesticides’ INR800 crore IPO secures SEBI approval

R&D focused agrochemical technical company India Pesticides has received capital markets regulator SEBI’s go-ahead to float initial share-sale. India Pesticides IPO comprises of a fund raise via a fresh issuance of shares amounting to INR100 crore and INR700 crore through an offer-for-sale (OFS) by promoter Anand Swarup Agarwal and selling shareholder ASA Trust.

As stated in the draft prospectus, the company may undertake a Pre IPO placement of INR75 crore subject to consultation of the merchant bankers. The net proceeds from the issue will be used to fund its working capital requirements.

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The Lucknow-based company is an R&D driven agro-chemical manufacturer of Technicals with a growing Formulations business. According to a report by Frost & Sullivan, the company is amongst the fastest growing agro-chemical companies in India in terms of volume in FY2020. The company is also the sole Indian manufacturer and among top five manufacturers globally for several Technicals, such as, Folpet and Thiocarbamate Herbicide.

Since commencing operations in 1984, India Pesticides has diversified into manufacturing herbicide and fungicide Technicals and active pharmaceutical ingredients (APIs). The company also manufactures herbicide, insecticide and fungicide Formulations.

India Pesticides currently operates out to 2 manufacturing facilities out of the Lucknow and Hardoi in Uttar Pradesh having an aggregate capacity of 19,500 MT for Technicals and 6500 MT for the Formulations vertical. It currently has registrations and licenses for 22 agro-chemical Technicals and 124 formulations for sale in India and 27 agro chemical Technicals and 34 formulations for exports purpose.

India Pesticides IPO: Clients and Financial Performance

India Pesticides’s INR800 crore IPO secures SEBI approval has a decade long relationship with a diverse set of customers which include crop protection product manufacturing companies, such as, Syngenta Asia Pacific Pte Ltd, United Phosphorus, Ascenza Agro, S.A., Conquest Crop Protection Pty Ltd, Sharda Cropchem Ltd and Stotras Pty Ltd.

The company’s revenue from operations for FY2018, 2019, 2020 and the six months ended 30 September 2020 is INR253.2 crore, INR340.6 crore, INR479.6 crore, and INR333.8 crore, respectively. The Profit After Tax is INR32.7 crore, INR43.8 crore, INR70.5 crore and INR72.2 crore, for similar periods.

Source: https://ipocentral.in/india-pesticides-inr800-crore-ipo-secures-sebi-approval/