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India Pesticides’ IPO makes Impactful listing at 27% premium

22 September 20235 mins read by Angel One
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A Brief Overview

Headquartered in New Delhi, India Pesticides Limited made an impactful listing on the National Stock Exchange (or NSE) in addition to the Bombay Stock Exchange with a 27 percent premium. This is relevant when set against its price range for each share that fell between IBNR 290 to INR 296.

As of 10:04 AM this morning (5 July), India Pesticides Limited saw its stock being traded at an amount of INR 358.05.

Traders and investors alike were entitled to subscribe to the issue last month between June 23 and June 25.

Examining India Pesticides Limited’s IPO

As of Friday, July 2, the grey market indicated a premium for India Pesticides Limited’s stock to fall between the range of INR 50 – INR 55 via its price brand. The hike evident this morning indicates an upside of a minimum of 18 to 20 percent rising above its issue price.

Their initial public offering (or IPO) has been made in the hopes that the agrochemical, drug and intermediate manufacturer will be able to generate INR 800 crores via this method.

Their IPO was filed with the Securities and Exchange Board of India in February this year.  Of their INR 800 crore listing, INR 100 crore was hoped to be acquired via the issuance of new shares. INR 700 crore was anticipated via an offer of sale pertaining to its equities.

Thus far their IPO has been well received by investors which is evident from the fact that these very investors have bid for shares amounting to 56.07 crores which fall in stark contrast to the 1.93 crore shares that were made available via the offer. Moreover, the number of shares allocated towards qualified institutional investors saw a subscription of 42.95 times whereas the shares allocated under the non-institutional investor category were bid on and subscribed to 51.88 times.

As per statements released by India Pesticides Limited, funds generated via their public issuance of shares are set to be directed towards funding working capital requirements in addition to being allocated for general corporate requirements.

Financial Performance – Fiscal 2020 saw India Pesticides Limited earn 62 percent of its revenue via its technical segment of which a large chunk is exported to countries located within Asia, Africa and Europe in addition to the United States. The company reported a year-on-year growth amounting to 37.17 percent between fiscal 2020 and fiscal 2021.

Profit After Tax (or PAT) – India Pesticides Limited reported a PAT amounting to INR 1345 million for the fiscal year that ended in March 2021.

Position – India Pesticides Limited is responsible for creating a wide array of technicals exclusively in the country including Thiocarbamate and Herbicide which gives it a leadership role within the industry.

Manufacturing Units and Capabilities – India Pesticides Limited’s manufacturing units are located in the state of Uttar Pradesh in the Lucknow and Hardoi regions. Each unit has a capacity to produce 19,500 mt of agrochemicals in addition to 6500 mt worth of formulation products.

Other Pertinent Information

India Pesticides Limited serves as one of five agrochemical technical manufacturers in the county today.

The agrochemical giant has under its belt registrations and licenses for 22 agrochemical technical productions. Within its retinue, it includes 125 formulations that are permitted to be sold in the country. It also manufactures 27 agrochemical technicals and 35 formulations that are specifically meant to be exported.

Additionally, fungicides, herbicides, insecticides are all manufactured by India Pesticides Limited which also manufactures active pharmaceutical ingredients (or APIs) which are used in the production of varied medicines that prevent disease and promote good health.

It is important to note that India Pesticides Limited is committed to sustainability measures as per its official website. This website has indicated that they strive to carry forth their operations in a socially responsible manner. Moreover, their website elucidates their dedication to carrying out each of their initiatives in a manner that promotes growth among their communities.

Stocks of Note Today

India Pesticides Limited’s stock isn’t the only one causing a stir today. Others of relevance today include but aren’t limited to Tata Consumer, Vodafone Idea, Avenue Supermarts, and Tata Chemicals.

Chemicals are witnessing their demand slowly but surely rise and are expected to return to their pre-Coronavirus levels within the present fiscal year as per a statement made by the chairman, N. Chandrasekaran of Tata Chemicals.

Concluding Thoughts

A more comprehensive understanding of India Pesticides Limited’s initial public offering performance should be evident by the end of the week.

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