India Pesticides IPO Review 2021: India Pesticides Ltd. (IPL) IPO opens on 14th June and closes on 17th June 2021. In this article, we cover the IPL IPO review and look into important IPO information to find out the possible prospects of the company.
Table of Contents
India Pesticides IPO Review- About the Company
Founded in 1984, India Pesticides Limited (IPL) is one of the fastest-growing and leading agrochemical manufacturers.
Since its inception, the company has come a long way to manufacture herbicide and fungicide technicals and formulations. In addition, the company also manufactures active pharmaceutical ingredients (“APIs”).
When it comes to technicals IPL is the only Indian manufacturer and one of the top global manufacturers for technicals like Captan, Folpet, Thiocarbamate Herbicide.
The company has obtained registration for 22 agrochemical technicals and 124 formulations for sale in India. For exports, it has a license for 27 agrochemical technicals and 34 formulations
IPL has 2 manufacturing plants located at Dewa Road, Lucknow, and Sandila, Hardoi in Uttar Pradesh. These give the company an installed capacity of 19,500 MT for agrochemicals and 6500 MT for formulations.
Last Fiscal year the company manufactured 15,003 MT of Technicals touching 75% of its plant’s operating capacity. The Growth that the company has shown considering the pandemic is impressive
In addition to its manufacturing capabilities, the company has also had 2 well-equipped in-house laboratories. These are registered with the DSIR and enhance the firm’s R&D.
The market for its agrochemical formulations is mainly domestic being sold to crop protection manufacturers like Syngenta Asia Pte Ltd, UPL Ltd, ASCENZA AGRO, S.A., Conquest Crop Protection Pty Ltd, Sharda Cropchem Limited, and Stotras Pty Ltd. Its technicals however have both a domestic and global demand.
The company exports them to 20+ countries. These span across Asia, Europe, Africa, and even includes Australia. Its technical exports accounted for 56.71% of the revenue for fiscal 2021.
The IPO is attractive for investors looking for dividend stocks. This is because the company has maintained a good record for dividends for the last 3 years.
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India Pesticides Limited’s (IPL) Competitors
Following are some of its domestic listed competitors.
Its global competition includes
- China National Corporation Ltd
- Sumitomo Chemicals Co. Ltd
- BASF SE
India Pesticides IPO Review – Grey Market Premium
The shares of Indian Pesticides Ltd. were trading at a 34% premium in the grey market a day before the IPO. The shares traded at a price of Rs. 396 giving them a premium of Rs. 95-100 over their issue price band of Rs 290-296 per share.
Key Information of India Pesticides IPO
The promoters of the company include Anand Swarup Agarwal and the ASA Family Trust. They have appointed Axis Capital Ltd. and JM Financial Ltd. as the lead managers to the issue. KFin Technologies Pvt. Ltd. has been appointed as the registrar to the issue.
Particular Details
IPO Size ₹800.00 Cr
Fresh Issue ₹100.00 Cr
Offer For Sale(OFS) ₹700.00 Cr
Opening Date Jun 23, 2021
Closing Date Jun 25, 2021
Face Value ₹1 per equity share
Price Band ₹290 to ₹296 per equity share
Lot Size 50 Shares
Minimum Lot Size 1
Maximum Lot Size 13
Listing Date Jul 5, 2021
India Pesticides IPO Review – Purpose of the IPO
The proceeds raised from the IPO will be used for the following purpose:
- Finance working capital requirements.
- Other general corporate purposes.
Quick Read
Closing Thoughts
The IPO opens on 23rd June and closes on 25th June 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of India Pesticides Ltd.
That’s all for this post. Do let us know what you think of the India Pesticides IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
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