New Delhi: R&D focused agrochemical technical company, India Pesticides, one of the fastest growing companies in India by volumes in FY20, as per F&S Report, has filed its DRHP to raise Rs 800 cr via an IPO. The public offer comprises of a fund raise via a fresh issuance of shares amounting to Rs. 100 cr and Rs. 700 cr through an offer-for-sale by promoter and technocrat, Anand Swarup Agarwal aggregating to Rs. 281 cr and other selling shareholder, the balance Rs. 419 cr. As stated in the DRHP, the company may decide to undertake a Pre IPO placement of 75 crs subject to consultation of the merchant bankers.
The Face Value of Equity Shares is Rs. 1 each. The Price Band and the minimum bid lot shall be decided by the company and the promoter selling shareholders in consultation with the BRLMS.
The Company proposes to utilise the Net Proceeds towards funding the working capital requirements and general corporate purposes. Further, the Company expects to receive the benefits of listing of the Equity Shares, including to enhance the visibility and brand image among the existing and potential customers.
The company commenced operations in 1984 and now has a growing formulations business in herbicides, insecticides and fungicide segments and also manufactures APIs . It stands to be the only Indian manufacturer and amongst the top 5 companies globally for several technical products such as Folpet and Cynomoxanil, used to make fungicides that control fungal growth across a variety of crops. The major herbicide technical it manufactures includes Thiocarbamate which has an application in filed crops such as wheat and rice.
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. It currently has registrations and licenses for 22 agro-chemical Technicals and 124 formulations for sale in India and 27 agro chemical Technicals and 34 formulations for exports purpose.
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 is currently the 4th largest producer of crop protection chemicals in the world it is expected to emerge as an export hub for crop protection chemicals considering the cost effective manufacturing and availability of skilled labour. Increasing world population thus resulting to high agricultural yields are one of the key growth factors for this industry
Axis Capital Limited and JM Financial Limited are the BRLMS and KFin Technologies Private Limited is the Registrar to the Issue.