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India Pesticides gets go-ahead from SEBI for Rs 800-cr IPO

India Pesticides gets go-ahead from SEBI for Rs 800-cr IPO

India Pesticides gets go-ahead from SEBI for Rs 800-cr IPO
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By CNBCTV18.com May 5, 2021 12:06:06 PM IST (Published)

Agrochemical technical firm India Pesticides has received approval from the capital markets regulator Securities and Exchange Board of India to go ahead with its initial public offering.

Agrochemical technical firm India Pesticides has received approval from the capital markets regulator Securities and Exchange Board of India to go ahead with its initial public offering.

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India Pesticides' Rs 800 crore IPO comprises a fresh issue of Rs 100 crore and an offer of sale of Rs 700 crore by promoters and other shareholders, according to the draft red herring prospectus.


The company had filed its preliminary papers with the SEBI in February and received the market regulator’s observation on April 30.

As per the DRHP, the company may decide to undertake a pre-IPO placement of Rs 75 crore. If the company will be able to raise the said funds through a pre-IPO placement issue, the fresh issue size will be reduced.

One of the main reasons for this IPO by the company is to meet the working capital requirements and general corporate purposes.

With an aggregate capacity of 19,500 MT for technical and 6,500 MT for the formulations vertical, India Pesticides operates from two manufacturing facilities at Lucknow and Hardoi in Uttar Pradesh.

Also, it is the only Indian manufacturer and among the top five companies globally for technical products used to make fungicides that control fungal growth across a variety of crops.

Being an R&D-focused agrochemical technical major, the company has been growing formulations business in herbicides, insecticides, and fungicide segments since 1984. Also, it manufactures active pharmaceutical ingredients (APIs).

Revenue generated from exports contributed to 62.12 percent of the total revenue in the fiscal year 2020.

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