Agrochemical technicals firm India Pesticides Ltd has filed preliminary papers with capital markets regulator Sebi. The Uttar Pradesh-based firm appears to raise Rs 800 crore by way of an initial public supplying which comprises fresh concern of shares worth Rs one hundred crore and an provide of sale (OFS) of Rs 281.4 crore by promoter Anand Swarup Agarwal and Rs 418.6 crore by promoting shareholders, according to draft red herring prospectus. The equity shares are proposed to be listed on BSE and NSE.
The firm and promoting shareholders in consultation with book operating lead managers may well take into consideration a additional pre-IPO placement concern of Rs 75 crore. The firm in DRHP mentioned that if the pre-IPO placement requires spot then the quantity raised from the pre-IPO placement will be decreased from the fresh concern. The book operating lead managers to the concern are Axis Capital Ltd and JM Financial Ltd, even though the registrar to the provide is KFin Technologies Private Ltd. The firm is the sole Indian manufacturer and amongst best 5 producers globally for numerous Technicals, such as, Folpet and Thiocarbamate Herbicide, used to make herbicide, insecticide and fungicides that manage fungal development across a selection of crops.
India Pesticides listed peers involve Dhanuka Agritech Ltd, Bharat Rasayan Ltd, UPL Ltd, Rallis India Ltd, PI Industries Ltd, Sumitomo Chemical India Ltd and Atul Ltd, have respective P/E ratios at 26.08. 27.46, 24.15, 30.41, 66.56, 76.67 and 29.26. The firm in DRHP stated that the proceeds of the OFS will be received by the promoting shareholders. The Company will not acquire any proceeds from the OFS. As for the fresh concern, India Pesticides has planned to utilise the net proceeds for funding working capital requirement of the firm, and basic corporate purposes. India Pesticides at present operates from two manufacturing facilities positioned at Dewa Road, Lucknow and Sandila, Hardoi in Uttar Pradesh, with an aggregate capacity of 19,500 MT for technicals and 6,500 MT for the formulations vertical.
It also manufactures active pharmaceutical components (APIs) and has obtained a license for manufacturing two drugs for sale at Dewa Road from the Drug Licensing and Controlling Authority. For the six months ended September 30, 2020, India Pesticides posted a profit of Rs 72.3 crore even though for the economic year 2020, it reported a profit of Rs 70.58 crore.