India Pesticides Limited IPO Details and Review

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
India-Pesticides-IPO

India Pesticides IPO: Key Details

  • Grey Market Premium (GMP) today: ₹60 – ₹65

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

India Pesticides Limited, incorporated in 1984, is an R&D driven agrochemical manufacturer of Technicals with a growing formulations business. They are one of the fastest-growing agrochemicals companies in terms of volume of Technicals manufactured. They have recorded 37.17% year-on-year growth in Technicals manufacturing (by volume) between Fiscal 2020 and Fiscal 2021, reaching more than 75% plant operating rate.

Theye are the sole Indian manufacturer of five Technicals and among the leading manufacturers globally for Captan, Folpet and Thiocarbamate Herbicide, in terms of production capacity (Source: F&S Reports).

Since commencing operations in 1984, they have diversified into manufacturing herbicide and fungicide Technicals and active pharmaceutical ingredients (“APIs”). They also manufacture herbicide, insecticide, and fungicide Formulations.

Competitive Strengths

  • Strong R&D and product development capabilities
  • Diversified portfolio of niche and quality specialized products
  • Long-term relationship with key customers
  • Advanced manufacturing facilities with a focus on the environment, health, and safety
  • Strong sourcing capabilities and extensive distribution network
  • Consistent track record of financial performance
  • Experienced promoters and strong management team

Company Strategy

  • Continue to focus on R&D and process innovation to expand product portfolio, grow customer base and revenue share with existing customers
  • Focus on cost optimization
  • Capitalize on industry opportunities
  • Grow the portfolio of formulations products
  • Expand the business and geographical footprint through inorganic growth

Proceeds from India Pesticides IPO will be used to:

  • Funding working capital requirements of the Company and
  • General corporate purposes

India Pesticides IPO: Financials

201920202020
Revenue from Ops₹340.69 Cr₹479.63 Cr₹648.95 Cr
Profit before Excep*₹61.10 Cr₹93.37 Cr₹179.95 Cr
Profit after Tax43.92 Cr₹70.79 Cr₹134.53 Cr
EPS (Basic)3.946.3512.07
*Tax and Exceptional Items
As of March 2020EPS (Avg*)P/E (Floor)P/E (Cap)
Based on basic EPS8.8132.9233.59
* Weighted Average for last 3 years

Comparison with listed industry peers

CompanyP/E (Cap)
India Pesticides33.59
Highest (PI Industries)79.15
Lowest (Dhanuka Agirtech)31.70
Sector Avg47.44

India Pesticides IPO Dashboard

Issue Details

TypeValue
Issue Size₹800 Cr
Fresh Issue100 Cr
Offer for Sale700 Cr
Face Value₹1/- per Equity Share
IPO Price₹290 – ₹296
Lot Size50 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open23/06/2021
Bid Close25/06/2021
Allotment Finalization30/06/2021
Initiation of Refunds1/07/2021
Credit of Shares2/07/2021
Listing Date5/07/2021

Lot Size and Price

LotsSharesAmount
150₹14,800
13650₹1,92,400

Promoter Holding

HoldingPercentage
Pre-Issue83 %
Post-Issue72 %

India Pesticides IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB50%55,17,241 shares
NII15%41,37,931 shares
RII (Retail)35%96,55,173 shares
Total100%1,93,10,345 shares

India Pesticides IPO: Risks

  • Any failure to successfully obtain license registrations or renew or maintain statutory and regulatory permits and approvals required to operate would adversely affect the business
  • Failure to comply with the quality standards and technical specifications prescribed by customers may lead to loss of business
  • Inability to meet the quality standard norms prescribed by the central and state governments in India, as well as governments of other countries where they export their products, could result in the sales of the products being banned
  • They have issued Equity Shares during the preceding twelve months at a price that is below the Offer Price (@ ₹33.70 )
  • Inability to identify and understand evolving industry trends, technological advancements, customer
    preferences and develop new products to meet\ customers’ demands may adversely affect the business.

For complete internal and external risk factors, you can refer the RHP of the company.

India Pesticides IPO: Registrar and Lead Managers

Registrar of the Issue

KFintech (Formerly Karvy)

Selenium Tower B, Plot 31 & 32,
Financial District, Nanakramguda, Serilingampally Mandal,
Hyderabad, Telangana India – 500 032.

Phone: 1-800-309-4001
Email: [email protected]

Lead Managers of the Issue

JM Financial Limited
Axis Capital Limited

Phone: +91-22-4325 2183 / +91-22-2288 2460
Email: [email protected]

Leave a Reply

10 − four =

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.