India Pesticides Ltd has fixed its price band at Rs 290-296 per share for its initial public offering (IPO). The issue will open for subscription on June 23 and will close on June 25. The size of the company’s IPO will be Rs 800 crore.
The company’s public issue comprises a fresh issue of Rs 100 crore and an offer for sale (OFS) of Rs 281.40 crore by Anand Swarup Agrawal and Rs 418.60 crore by other shareholders and promoters.
IPO is a process of offering shares of private companies to the public in a new stock issuance to raise capital from public investors.
The shares of India Pesticides Ltd will be listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Axis Capital Limited and JM Financial Limited have been appointed as the lead to IPO, while KFin Technologies Private Limited is its registrar.
India Pesticides Ltd is a Research & Development (R&D) based Technical Key Agrochemical Manufacturers. The company’s formulation business is growing. In terms of the production capacity of Captan, Folpet, and Thiocarbamate insecticides, the company is one of the largest companies in the world. It has two manufacturing units Lucknow and Hardoi districts of Uttar Pradesh.
The listed peer companies of India Pesticides include Dhanuka Agrotech Ltd., Bharat Rasayan Ltd., UPL Ltd, Rallis India, PI Industries, Sumitomo Chemical India and Atul India. The company will use Rs 80 crore as working capital out of the funds raised through the Rs 800 crore IPO. It will use the remaining amount for general corporate needs.
India Pesticides is a diversified manufacturing company of insecticides, fungicides and APIs. The company applies Thiocarbamate technology in its product which is used to protect paddy, wheat crops from insects.
India is currently the fourth largest manufacturer of crop protection chemicals in the world.