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India Pesticides receives SEBI’s approval for an IPO worth Rs. 800 crores

05 August 20225 mins read by Angel One
India Pesticides receives SEBI’s approval for an IPO worth Rs. 800 crores
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India Pesticides IPO Details

India Pesticides, an R&D-focused agrochemical technical firm, has filed its DRHR to raise Rs. 800 crores via an IPO. The public offering includes a fund raise of Rs. 100 crores through a new issue of shares and Rs. 700 crores through an offer-for-sale by promoter and technocrat Anand Swarup Agarwal for Rs. 281 crores and other selling shareholders for the remaining Rs. 419 crores. According to the DRHR, the company can decide to do a Rs. 75 crores pre-IPO placement after consulting with merchant bankers.

Every equity share has a face value of Rs. 1. The business and the promoter selling shareholders, in conjunction with the BRLMS, will determine the price band and the minimum bid lot. The net proceeds will be used to finance working capital needs and general corporate purposes, according to the group. The Company also expects to benefit from the listing of the Equity Shares, such as increased exposure and brand image among current and potential customers.

About The Company

  • The company was founded in 1984 and now has a thriving formulations sector in the herbicides, insecticides, and fungicide divisions, as well as API manufacturing. It is the only Indian manufacturer of many technological goods, such as Folpet and Cynomoxanil, which are used to produce fungicides that manage fungal growth in a variety of crops, and is among the top five companies in the world. Thiocarbamate, a herbicide used in field crops such as wheat and rice, is one of the main herbicides it produces.
  • India Pesticides currently operates out of two manufacturing facilities in Uttar Pradesh, one in Lucknow and the other in Hardoi, with a total capacity of 19,500 MT for Technicals and 6,500 MT for Formulations. It has legal certificates for twenty-two agrochemical Technicals and 124 formulations for sale in India, as well as twenty-seven agrochemical Technicals and thirty-four formulations for export.
  • Syngenta Asia Pacific Pte Ltd and United Phosphorus are just a few of the crop protection commodity manufacturers with whom the company has a decade-long relationship.
  • India is currently the world’s fourth largest producer of crop protection chemicals, and it is projected to become an export hub for crop protection chemicals due to its cost-effective manufacturing and skilled labour availability. One of the main growth drivers for this industry is the growing global population, which results in higher agricultural yields.

India Pesticides IPO Date

The opening and closing dates of India Pesticides Limited’s initial public offering are not yet known.

India Pesticides IPO Allotment Status

Allotment of equity shares pursuant to the Fresh Issue and transfer of the Promoter Selling Shareholders’ Offered Shares to the eligible Bidders pursuant to the Offer for Sale. However, the status of the allotment has yet to be revealed.

India Pesticides IPO Issue Objectives

The Company intends to use the Net Proceeds to finance the following projects:

  • Funding the company’s working capital needs.
  • General corporate purpose.

Business strategies of India Pesticides Limited

  • To broaden the product line, it will continue to concentrate on R&D and process innovation.
  • Expand the customer base and revenue share with current clients.
  • Take advantage of business opportunities.
  • Inorganic growth allows it to expand its market and geographical footprint.

India Pesticides IPO Business Verticals

They operate in two distinct verticals: Technicals and Formulations. Fungicides and herbicides, as well as APIs with applications in dermatological products, are manufactured using standardised Technicals.

In addition, the company manufactures and sells ready-to-use insecticides, fungicides, and herbicides, as well as growth regulators and acaricides. It produced over 30 Formulations as of September 30, 2020, including Takatvar, IPL Ziram-27, IPL Dollar, IPL Soldier, and IPL Guru.

Wrapping Up

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More information on the India Pesticides IPO should be available soon.

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