India Pesticides Limited IPO - Strengths, Purpose, Financial Performance and IPO details

Manish Kothari
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Manish Kothari

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 2020FY 2020FY 2019FY 2018
Total Revenue337.24489.72346.04255.85
Total Expenses239.43396.35284.94205.67
Profit After Tax72.4970.7943.9232.80
Total Assets492.71365.70317.23240.36

*All the values are in crores and as per DRHP.

Valuation of the Company

 For the 6-month period ended 31st September 2020FY 2020FY 2019FY 2018
Basic Earnings per Share (EPS)6.516.353.942.94
Diluted Earnings per Share (EPS)6.516.353.942.94
Return on Net Worth (%)22.03%27.57%23.48%22.80%
Net Assets Value per Equity share29.5423.0516.7912.92

*As per DRHP. 

India Pesticides Limited IPO DRHP

IPO details

Face Value₹1 per equity share
Market Lot50 Shares
Minimum Order Quantity1 Lot
Price Band₹290-₹296 per equity share
Issue typeBook Built Issue IPO
Issue Size₹800 Crores
Fresh Issue₹100 Crores
Offer for Sale₹700 Crores 
Listing NSE, BSE

Important IPO dates

Open Date23 June 2021
Close Date25 June 2021
Basis of Allotment Date30 June 2021
Initiation of Refunds1 July 2021
The credit of shares to Demat Account2 July 2021
Listing Date5 July 2021

Allocation Quota

Qualified Institutional Buyers (QIBs)Not more than 50%
Non- Institutional Buyers (NIIs)Not less than 15%
Retail InvestorsNot less than 35%

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