According to red herring prospectus filed with Registrar of Companies (RoC), on June 23, India Pesticides’ public issue for subscription will open its ₹800 crore initial public offer (IPO). The fixed price band for the offer is ₹290-296 per share. The shares are possibly to be listed on the BSE Sensex and NSE Nifty. The public issue will close on June 25, 2021.
The IPO will constitute a fresh issue of up to ₹100 crore shares with an offer for sale (OFS) for equity shares of a total ₹281.4 crore crore by the promoter Anand Swarup Agarwal and aggregating up to ₹418.6 crore by other selling shareholders.
The net proceeds received from the fresh issue will be used to fund working capital requirements at ₹80 crore and general corporate purposes. The OFS money will go to selling shareholders.
A minimum of 50 equity shares can be bid by investors. Subsequently, in multiples of 50 equity shares.
India Pesticides has said that the offer is being through the process of book building where not more than 50 percent of the issue will be available for allocation on a proportionate basis to qualified institutional buyers (QIB) subsequent to fulfilling the regulatory forms that are required.
Between FY20 and FY21, the R&D driven agro-chemical manufacturer has recorded 37.17 percent year-on-year growth in technicals manufacturing (in terms of volume), reaching above 75 percent plant operating rate. It manufactures herbicide, insecticide, fungicide formulations and pharmaceutical ingredients as well.
The company has two manufacturing facilities at UPSIDC industrial area at Lucknow and Sandila, Hardoi in Uttar Pradesh and caters to companies like Syngenta Asia Specific, United Phosphorus Ltd. (UPL), Ascenza Agro and Sharda Cropchem.