Another IPO on the way⁠ -- India Pesticides is looking to raise ₹800 crore

Agrochemical company India Pesticides Ltd has filed a draft red herring prospectus (DRHP) to raise ₹800 crore through an initial public offering (IPO). The public offer will comprise a fundraise via a fresh issuance of shares amounting to ₹100 crore and ₹700 crore through an offer-for-sale by the promoter.

The Lucknow-based company may decide to undertake a pre-IPO placement of ₹75 crore subject to consultation of the merchant bankers.

The company said it would utilise the net proceeds from the public issue to fund working capital requirements and general corporate purposes. Further, it expects to receive the benefits of listing equity shares, including enhancing the visibility and brand image among the existing and potential customers.

The price band and the minimum bid lot for the issue are yet to be decided by the company and the promoter selling shareholders in consultation with the BRLMS.

The company has appointed Axis Capital Limited and JM Financial Limited as the book running lead managers and KFin Technologies as the registrar to the issue.

Here's all you need to know about the company:

-  India Pesticides started operations in 1984 and has a growing formulations business in herbicides, insecticides and fungicide segments.

-  As per Frost & Sullivan report, the research and development focused agrochemical technical company, India Pesticides, is one of India's fastest-growing companies by volumes in FY20.

-  It is the only Indian manufacturer and amongst the top 5 companies globally for several technical products such as Folpet and Thiocarbamate Herbicide, which is used to make fungicides that control fungal growth across a variety of crops.

-  India Pesticides currently operates out of 2 manufacturing facilities out of the Lucknow and Hardoi in Uttar Pradesh having an aggregate capacity of 19,500 MT for Technicals and 6500 MT for the Formulations vertical.

-  The company currently has registrations and licences for 22 agrochemical technicals and 124 formulations for sale in India and 27 agrochemical technicals and 34 formulations for export purposes.