Crystal Crop plans IPO, eyes 20% revenue growth

Agro-chemical firm Crystal Crop Protection expects 20% increase in turnover this fiscal at about Rs1,600 crore and plans to launch an initial public offer (IPO) early 2018 to raise funds for expansion.

The company plans to file the draft red herring prospectus (DRHP) for IPO with market regulator Sebi by the end of this year, managing director Ankur Aggarwal said.

The national capital-based firm will launch four products in the market before start of the kharif sowing season, which will help the company grow faster this fiscal, he added.

“We will file the prospectus by the end of this year. Sebi takes 2-3 months to clear DRHP. Once we get the approval, the January-March quarter is the right time to enter the market. There is an intent, we will see how it goes,” Aggarwal said.

The company will soon appoint merchant bankers for the IPO, he added. Asked about the IPO size, he said: “It is not about just raising money, shareholders should make money. If shareholders are not making money, it does not make sense.”

Aggarwal said the company requires funds for expansion and is looking at acquisition. “We have chalked out certain expansion plans that’s going great. We are looking at certain acquisitions. We acquired a brand from BASF last year,” he said.

Aggarwal said the company is looking to double its turnover in the next five years from Rs 1,350 crore last fiscal and hence, the working capital requirements will increase.

“We will launch one fungicide mixture which is patent applied and one insecticide mixture (patent applied, one miticide product which is one of the best and highest selling in the world and one bio-fertiliser product,” Aggarwal said.

The company has three manufacturing facilities—two in Jammu and one in Haryana. It is into agrochemical, agro- equipment and seed business. Private equity firm Everstone Capital had invested about $30 million in the company in 2012 and had about 9% stake in the company, which has now come down to 3.5%.