IPO

India Pesticides Limited IPO : 800 Crore Rs. IPO

India Pesticides Limited initiated its business operations in 1984. India Pesticides has majorly diversified its product portfolio in two parts : Formulation and Technicals. The company manufactures API, fungicide and herbicide. The company is the only manufacturer in the nation for various technicals like Herbicide, thiocarbamate and Folpet.
India pesticides have export exposure as well. It exports its products to more than 21 countries in the world. The exports of technicals also accounted for 59% of revenues in 2020. The agrochemical selling is done in the domestic companies. India Pesticides has 2 manufacturing units in India. Together they produce 6500 MT of formulations and 19500 MT of agrochemicals.

IPO DETAILS

The India Pesticides Limited IPO is set to get launched on 23rd June, 2021. The subscription timeline extends till 25th June, 2021. The size for India Pesticides Limited IPO is 800 Crore Rs. Shares issued through Offer for sale are 700 Crore Rs. Shares worth 100 Crore Rs are issued through Fresh issue. The minimum lot size is 35 shares and the price is set at 290 Rs. – 296 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Re. 1 and this is a book built issue. The registrar for the company is Karvy Fintech Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	23rd June, 2021
IPO CLOSING DATE	25th June, 2021
ISSUE TYPE	Book Built Issue
Face Value per share	1 Re.
IPO price band	290 Rs. – 296 Rs.
LOT SIZE	50 shares
MINIMUM ORDER QUANTITY	50 shares
ISSUE SIZE	800 Crore Rs.
OFFER FOR SALE	700 Crore Rs.
FRESH ISSUE	100 Crore Rs.
LISTING AT	BSE, NSE
LISTING DATE	5th July, 2021

IMPORTANT DATES

IPO OPENING DATE	23rd June, 2021
IPO CLOSING DATE	25th June, 2021
IPO ALLOTMENT DATE	30th June, 2021
REFUNDS	1st July, 2021
DEMAT A/C CREDITED ON	2nd July, 2021
IPO LISTING DATE	5th July, 2021

The India Pesticides Limited IPO begins for subscription from 23rd June, 2021. The IPO subscription would continue till 25th June, 2021. The allotment status for the shareholders who applied would come on 30th June, 2021. The refunds for the ones who did not get allotment would be initiated on 1st, 2021. The DEMAT accounts of shareholders would be credited on 2nd July, 2021. The listing of the company would be accompanied on 5th July, 2021.

PROMOTER AND LEAD MANAGERS

The joint promoter for India Pesticides limited is ASA Family Trust. The main promoter is Anand Swarup Agarwal. The holding on part of the promoter before IPO allotment is 82.68%.
The lead managers for the company are :

JM Financial Consultants Private Limited
Axis Capital Limited

OBJECTIVES FOR THE IPO

The company may plan for expansion. Also it needs additional liquidity. That is the reason for its IPO funding. The company wants to flush its working cap with the same.
The money from the IPO can also be utilized to meet general corporate purposes.

COMPANY FINANCIALS

Particulars (in Million Rs.)	2020-19	2018-19	2017-18
ASSETS	5170	3658	3172
REVENUE	6553	4897	3460
NET PROFIT	1345	707	439

India Pesticides Limited is a well diversified company. It has been showing real growth in revenue generation as well. The company has been able to successfully be productive in comparison to its asset growth, the asset base has increased by 2000 Crore Rs in 2 years and the revenue on other hand has increased by 3000 Crore Rs approximately.
Another important aspect is the profit generation potential. India pesticides limited has been generating revenue constantly and the growth has been substantial in 2020-21 especially. There has been an increased profit of 900 Crore Rs in 2 years. These are strong signs of company growth. Even in the time of COVID there has been a constant rise in the revenue and profits, The reason is the produced elements are used in agriculture which is a continuous activity. This tells us that the company is financially strong and has great potential for upcoming times.

PROS

The company has more than 3 decades of experience and an R&D team.
There is a diversification in the product mix of the company.
The company has its presence in export business.
The financials of the company are quite impressive.

CONS

Rising competition in the market.
Exports account for more than 55% of revenues. However the company has all its manufacturing facilities in India. In adverse times there are chances that it can default for exporting its products to other countries.