Arbuda Agrochemicals IPO: Issue of 64 Lakh Shares and Strong FY25 Financial Growth

Arbuda Agrochemicals Limited has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) of up to 64,00,000 equity shares. The issue comprises a fresh issue of 55,00,000 shares and an offer for sale (OFS) of 9,00,000 shares by promoter Mukeshkumar N. Patel. The equity shares are proposed for listing on NSE Emerge.

Company Background

Founded in 2010 and converted into a public company in 2024, Arbuda Agrochemicals manufactures a wide range of pest control solutions. Its product line includes household pesticides, crop insecticides, rodent and fly control products, rat glue traps, and pest control equipment. The company operates production facilities at Talod in Gujarat and Vasai in Maharashtra.

The company is certified under ISO 9001:2015, HACCP, and GMP standards and holds 203 approvals from the Central Insecticides Board & Registration Committee (CIB&RC). These credentials underline its regulatory compliance and product reliability.

IPO Objectives

The IPO proceeds from the fresh issue will be utilised for multiple strategic initiatives. Arbuda Agrochemicals plans to establish a new Aluminium Phosphide (ALP) manufacturing line at its Talod plant, with an allocation of ₹1,170.64 lakh. Alongside, selective capital expenditure is planned for its Talod and Vasai plants.

Another ₹1,200 lakh has been earmarked for full or partial repayment of existing borrowings, while ₹150 lakh will be invested in brand visibility and awareness campaigns. Planned capital projects include advanced machinery, hot-melt adhesive facilities, and solar power installations, which are expected to reduce costs and improve sustainability.

Financial Performance

Arbuda Agrochemicals has reported robust financial growth in recent years. Revenue from operations reached ₹7,521.98 lakh in FY25, marking a 20.9% increase compared with ₹6,219.63 lakh in FY24. Profit after tax (PAT) grew 45% year-on-year to ₹1,162.05 lakh, from ₹800.74 lakh in FY24 and ₹251.59 lakh in FY23.

The company’s EBITDA margin stood at 22.72% in FY25, while PAT margin was 15.43%. Return on Net Worth (RoNW) improved significantly to 33.01%. Net worth rose to ₹3,520.14 lakh in FY25, up from ₹2,367.85 lakh in FY24. Borrowings also increased to ₹964.74 lakh, indicating higher funding requirements to support growth.

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Conclusion

Arbuda Agrochemicals’ planned IPO highlights its intent to expand capacity, strengthen its balance sheet, and enhance brand visibility. With strong financial growth in FY25 and clear investment objectives, the company has positioned itself for further expansion in India’s agrochemicals and pest control market.

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