After a recess of two months, IPOs are once again back in the market. In June, four companies lined up to hit the IPO market to raise a total of Rs 9,123 core. India Pesticides Limited IPO will open on June 23. The three days subscription window for retail investors will remain open till June 25, 2021.
Currently, market liquidity is high, with the interest rate hitting the floor, meaning it is an excellent opportunity to invest in the stock market, and mid and small size companies will try to test investors’ interest. It explains the sudden surge in IPOs offers.
India Pesticides Limited filed with SEBI during February, seeking approval to float a maiden offer. They are looking to mobilise a fund of Rs 800 crore through IPO, which will comprise Rs 100 crore in new shares and Rs 700 in offer for sale of equities.
Company Financials And Performance
Financially the company is set on solid ground with a robust market presence in the global and domestic market and a unique position in over 30 products. In Fiscal 2020, the company earned 62 percent of revenue from the Technical segment (one of its two business verticals), which it exports mainly to more than twenty countries in the US, Asia, Africa, and Europe. The company reported a PAT of Rs 1345 million in the financial year ending in March 2021.
Performance in the industry
India Pesticides Limited is the sole producer of several Technicals like Folpet, Thiocarbamate, and Herbicide in India, which gives a leadership position to them in the industry. Besides, they enjoy a unique place in manufacturing 30 plus specialised products in different Technical and Formulations categories.
They have two manufacturing units in Lucknow and Hardoi in Uttar Pradesh, with a capacity of producing 19,500 mt agrochemicals and 6500 mt formulation substances. India Pesticides had recorded 37.17 percent year-on-year growth between FY20 and FY21.
Highlights Of The Offer And Pertinent Information
- India Pesticides Limited IPO dates: The offer opens on June 23, 2021, for three days until it closes on June 25, 2021.
- It offers primary and secondary components, where the company proposes to raise Rs 100 crore in new shares and Rs 700 crores in offer for sale of equities. Promoter Anand Swarup Agarwal and selling shareholders will offload Rs 281.4 crore and Rs 418.6 crore shares, respectively.
- The stocks carrying a face value of Rs 1 will launch in the price band of Rs 290-296 per share.
- Applying investors need to subscribe for a minimum of one lot of 50 shares and increase up to 13 lots, totalling 650 shares. At the upper limit of the price band, investors will have to invest Rs 14,800 for one lot of India Pesticides IPO.
- The company will utilise the net proceeds from the new shares to finance capital requirements and general corporate expenses.
- They have appointed Axis Capital Management and JM Financial Consultants Private Limited as their book-running lead managers.
India Pesticides: Table Of Important Dates
|IPO Open Date||June 23, 2021|
|IPO Close Date||June 25, 2021|
|Basis Of Allotment Date||June 30, 2021|
|Initiation Of Refunds||July 1, 2021|
|Credit Of Shares To Demat Account||July 2, 2021|
|IPO Listing Date||July 5, 2021|
India Pesticides has a proven track record of forty years, establishing it as a stable company with a strong foundation. It exhibits strong fundamentals, business values, and research and development, which contributed to its success. Find more about upcoming IPOs, including India Pesticides, under the Subscribe to Active IPOs section.
Apply to India Pesticides IPO, click here.