Agro-chemical firm India Pesticides is all set to launch its Rs 800-crore initial public offering (IPO) on June 23, 2021. The price band for the issue, which will close on June 25, has been fixed at Rs 290-296 per share.
The issue includes a fresh issue of shares worth Rs 100 crore and an offer for sale of shares worth Rs 700 crore by promoters and shareholders. Shares worth Rs 281.4 crore will be sold by promoter Anand Swarup Agarwal and Rs 418.6 crore by other selling shareholders.
Anand Swarup Agarwal and the ASA Family Trust are the promoters of the company. They currently hold a 46.97 percent equity stake in the company.
The net proceeds from the fresh issue will be utilised for working capital requirements (Rs 80 crore), and general corporate purposes, while the offer for sale money will go to selling shareholders.
Investors can bid for a minimum of 50 equity shares and in multiples of 50 equity shares thereafter. On the higher end of the price band, it will amount to Rs 14,800.
Axis Capital and JM Financial are the book-running lead managers to the issue.
India Pesticides manufactures herbicides, insecticides and fungicide formulations, besides active pharmaceutical ingredients. It has 2 manufacturing facilities and caters to companies such as Syngenta Asia Pacific, UPL, Ascenza Agro and Sharda Cropchem.
The company is one of the fastest-growing agrochemicals companies in terms of the volume of technicals manufactured. It recorded 37.17 percent year-on-year growth in technicals manufacturing (by volume) between FY20 and FY21.
The company's listed peers include Dhanuka Agritech, Bharat Rasayan, UPL, Rallis India, Rallis India, Atul and Sumitomo Chemical India.