India Pesticides receives Sebi nod for Rs 800-crore IPO

R&D focused agrochemical technical company India Pesticides, have received capital markets regulator Sebi’s go-ahead to float initial share-sales.

The public offer comprises a fundraise via a fresh issuance of shares amounting to Rs 100 crore and Rs 700 crore through an offer-for-sale by promoter and technocrat, Anand Swarup Agarwal and selling shareholder ASA Trust.

As stated in the DRHP, the company may decide to undertake a pre IPO placement of 75 crore subject to consultation of the merchant bankers. The net proceeds from the issue are to fund its working capital requirements.

Since commencing it’s operations in 1984, the company have diversified into manufacturing herbicide and fungicide Technicals and active pharmaceutical ingredients (APIs). The company also manufacture herbicide, insecticide and fungicide Formulations.

IPL has a decade long relationship with a diverse customer which includes crop protection product manufacturing companies, such as, Syngenta Asia Pacific Pte Ltd, United Phosphorus, Ascenza Agro, S.A., Conquest Crop Protection Pty Ltd, Sharda Cropchem Ltd and Stotras Pty Ltd.

India Pesticides currently operates out to two 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. It currently has registrations and licenses for 22 agrochemical technicals and 124 formulations for sale in India and 27 agrochemical technicals and 34 formulations for exports purpose.

The company’s revenue from operations for fiscals 2018, 2019, 2020 and the six months ended September 30, 2020 is Rs 253.2 crore, Rs 340.6 crore, Rs. 479.6 crore, and Rs. 333.8 crore, respectively. The profit after tax is Rs 32.7 crore, Rs. 43.8 crore, Rs. 70.5 crore and Rs. 72.2 crore, for similar periods. In between, FY18-FY20 company’s revenue from operations has grown at a CAGR of 37.63%.