India Pesticides’ Rs 800-crore IPO, which will open for subscription on June 23, has fixed its price band at Rs 290-296 per share of the face value of Re 1, each. The issue will close on June 25. The public issue comprises fresh issue of shares worth Rs 100 crore and offer-for-sale (OFS) of Rs 281.4 crore by promoter Anand Swarup Agarwal and Rs 418.6 crore by selling shareholders. Up to 50 per cent of the net offer has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors (NIIs).
Investors can make bids for a minimum of 50 equity shares and in multiples thereafter. At the upper price band, they will be shelling out Rs 14,800 to get a single lot of India Pesticides IPO. The shares will be listed on both BSE as well as the National Stock Exchange (NSE). Upon successful listing, India Pesticides will join the likes of Dhanuka Agritech Ltd, Bharat Rasayan Ltd, UPL Ltd, Rallis India Ltd, PI Industries Ltd, Sumitomo Chemical India Ltd and Atul Ltd.
The Indian agrochemicals industry is fragmented in nature with the presence of more than 150 active ingredient manufacturers, over 1,000 formulators and over 200,000 companies engaged in distribution. India Pesticides faces competition from both domestic and multinational corporations. Competition is based on pricing, relationships with customers, product quality, customization and innovation. India Pesticides is engaged in the manufacture of Technicals and Formulations that are used in the manufacture of fungicides, herbicides and insecticides, as well as APIs that are used in the manufacture of pharmaceutical drugs. The company posted a profit after tax of Rs 134.8 crore in the fiscal ended March 31, 2021.
India Pesticides has planned to utilise net proceeds towards funding working capital requirements worth Rs 80 crore and for general corporate purposes. Major herbicide Technicals that the company manufactures include Thiocarbamate herbicides that have application in field crops, such as wheat and rice, and are used globally. It also manufactures and sells various formulations of insecticides, fungicide and herbicides, growth regulators and Acaricides, which are ready-to-use products.