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.
India Pesticides Limited IPO IN ZERODHA
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section
- Click the India Pesticides Limited IPO button and press the BID button
- Entering the details asked for like UPI ID, Quantity and price
- Submit the application form of IPO
- Visiting the application of UPI for approving the transaction
Now, applying for an IPO online is possible with most of the Discount and online brokers.
