India Pesticides’ Rs 800-crore IPO, which will open for subscription on June 23, has fixed its cost band at Rs 290-296 per share of the face worth of Re 1, every single. The challenge will close on June 25. The public challenge comprises fresh challenge of shares worth Rs one hundred crore and present-for-sale (OFS) of Rs 281.4 crore by promoter Anand Swarup Agarwal and Rs 418.6 crore by promoting shareholders. Up to 50 per cent of the net present has been reserved for certified institutional purchasers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors (NIIs).
Investors can make bids for a minimum of 50 equity shares and in multiples thereafter. At the upper cost band, they will be shelling out Rs 14,800 to get a single lot of India Pesticides IPO. The shares will be listed on each BSE as nicely as the National Stock Exchange (NSE). Upon productive listing, India Pesticides will join the likes of Dhanuka Agritech Ltd, Bharat Rasayan Ltd, UPL Ltd, Rallis India Ltd, PI Industries Ltd, Sumitomo Chemical India Ltd and Atul Ltd.
The Indian agrochemicals sector is fragmented in nature with the presence of more than 150 active ingredient suppliers, more than 1,000 formulators and more than 200,000 organizations engaged in distribution. India Pesticides faces competitors from each domestic and multinational corporations. Competition is based on pricing, relationships with shoppers, solution excellent, customization and innovation. India Pesticides is engaged in the manufacture of Technicals and Formulations that are utilised in the manufacture of fungicides, herbicides and insecticides, as nicely as APIs that are utilised in the manufacture of pharmaceutical drugs. The corporation posted a profit immediately after tax of Rs 134.8 crore in the fiscal ended March 31, 2021.
India Pesticides has planned to utilise net proceeds towards funding working capital specifications worth Rs 80 crore and for common corporate purposes. Major herbicide Technicals that the corporation manufactures contain Thiocarbamate herbicides that have application in field crops, such as wheat and rice, and are utilised globally. It also manufactures and sells different formulations of insecticides, fungicide and herbicides, development regulators and Acaricides, which are prepared-to-use items.