India Pesticides Limited IPO
Indian Pesticides is an R&D-driven agrochemical manufacturer of Technicals with a growing business in the Formulation space. As per F&S reports, in FY 2020, the company was among the fastest-growing agrochemical manufacturers in India in terms of volume.
India Pesticides is also the sole Indian manufacturer and among the top five manufacturers globally for different Technicals like Folpet and Thiocarbamate Herbicide. Since the commencement of its operations in 1984, the company has diversified into manufacturing fungicide and herbicide technicals and active pharmaceutical ingredients (“APIs”).
The company has a strategic focus on R&D and their R&D capabilities include two well-equipped in-house labs registered with the DSIR. Their Technicals are primarily exported and the revenue from exports contributed to 62.12% and 65.73% of the company’s revenue from operations in the Fiscal Year 2020 and the six months ended September 30, 2020, respectively. The Technicals of the company are exported to over 20 countries including Australia and countries in Asia, Europe, and Africa.
The EBITDA for the Fiscal Year 2018, 2019, 2020, and the 6-months ended September 30, 2020, was ₹ 58.04 crores, ₹ 70.63 crores, ₹ 103.65 crores, ₹ 102.70 crores, respectively while their EBITDA margin was 22.93%, 20.73%, 21.61%, and 30.76%, respectively, for the same periods. Despite the COVID-19 pandemic, their revenue from operations increased by 51.92% from ₹ 219.75 crores in the 6-months period ended September 30, 2019, to ₹ 333.84 crores in the 6-months period ended September 30, 2020.
The promoter of the company is Anand Swarup Agarwal & The ASA Family Trust.
Strengths of the company
- Strong product development and Research & Development (R&D) capabilities
- The company has a diversified portfolio of quality products
- The company has been maintaining a long-term relationship with its key customers
- Has high-end manufacturing facilities with a focus on safety, health & environmental protection
- It has a wide distribution network
- Has a strong & consistent track record of financial performance
- Experienced management team & promoters
Purpose of the IPO
The net proceeds from the IPO could be utilized for the following purposes:
- To fund the working capital requirements of the company
- For general corporate purposes
Financial Performance of the Company
| For the 6-month period ended 31st September 2020 | FY 2020 | FY 2019 | FY 2018 | |
| Total Revenue | 337.24 | 489.72 | 346.04 | 255.85 |
| Total Expenses | 239.43 | 396.35 | 284.94 | 205.67 |
| Profit After Tax | 72.49 | 70.79 | 43.92 | 32.80 |
| Total Assets | 492.71 | 365.70 | 317.23 | 240.36 |
*All the values are in crores and as per DRHP.
Valuation of the Company
| For the 6-month period ended 31st September 2020 | FY 2020 | FY 2019 | FY 2018 | |
| Basic Earnings per Share (EPS) | 6.51 | 6.35 | 3.94 | 2.94 |
| Diluted Earnings per Share (EPS) | 6.51 | 6.35 | 3.94 | 2.94 |
| Return on Net Worth (%) | 22.03% | 27.57% | 23.48% | 22.80% |
| Net Assets Value per Equity share | 29.54 | 23.05 | 16.79 | 12.92 |
*As per DRHP.
India Pesticides Limited IPO DRHP
IPO details
| Face Value | ₹1 per equity share |
| Market Lot | 50 Shares |
| Minimum Order Quantity | 1 Lot |
| Price Band | ₹290-₹296 per equity share |
| Issue type | Book Built Issue IPO |
| Issue Size | ₹800 Crores |
| Fresh Issue | ₹100 Crores |
| Offer for Sale | ₹700 Crores |
| Listing | NSE, BSE |
Important IPO dates
| Open Date | 23 June 2021 |
| Close Date | 25 June 2021 |
| Basis of Allotment Date | 30 June 2021 |
| Initiation of Refunds | 1 July 2021 |
| The credit of shares to Demat Account | 2 July 2021 |
| Listing Date | 5 July 2021 |
Allocation Quota
| Category | Portion |
| Qualified Institutional Buyers (QIBs) | Not more than 50% |
| Non- Institutional Buyers (NIIs) | Not less than 15% |
| Retail Investors | Not less than 35% |
Check your India Pesticides Limited IPO allotment status here:
K Fintech IPO allotment Status: Click here
BSE IPO Allotment Status: Click here
NSE IPO Allotment Status: Click here