India Pesticides files for ₹800-crore IPO

Our Bureau Mumbai | Updated on February 10, 2021

To utilise the net proceeds towards funding the working capital requirements and general corporate purposes

Uttar Pradesh-based agrochemical technicals company India Pesticides Ltd has filed a Draft Red Herring Prospectus to raise ₹800 crore through an Initial Public Offering (IPO).

The company intends to raise ₹100 crore through issuance of fresh shares and ₹700 crore through an Offer For Sale (OFS) by promoter Anand Swarup Agarwal (₹281 crore) and another shareholder (₹419 crore). The firm might also raise ₹75 crore through a pre-IPO placement, according to the prospectus filed with the market regulator.

India Pesticides proposes to utilise the net proceeds towards funding the working capital requirements and general corporate purposes.

Axis Capital and JM Financial are the book running lead managers, and KFin Technologies is the registrar to the Issue.

Specialized products

The company, which started operations in 1984, now has a growing formulations business in herbicides, insecticides and fungicide segments. It also manufactures active pharmaceutical ingredients. It is the only Indian manufacturer and among the top five global firms for several specialized products such as Folpet and Cynomoxanil, used to make fungicides that control fungal growth across various crops.

India Pesticides has two manufacturing facilities - Lucknow and Hardoi in Uttar Pradesh – with an aggregate capacity of 19,500 MT for technicals and 6,500 MT for formulations. It currently has registrations and licenses for 22 agrochemical technicals and 124 formulations for sale in India and 27 agro chemical technicals and 34 formulations for exports purpose.

The company’s clientele includes crop protection product manufacturing companies such as Syngenta Asia Pacific, United Phosphorus, Ascenza Agro, Conquest Crop Protection, Sharda Cropchem and Stotras.

India is currently the fourth-largest producer of crop protection chemicals in the world and is expected to emerge as an export hub for crop protection chemicals considering the cost-effective manufacturing and availability of skilled labour.

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Published on February 10, 2021
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