India Pesticides Limited IPO - Information Note

India Pesticides IPO
IPO
by Nikita Bhoota 23/06/2021

India Pesticides limited IPO Details

Issue Opens - June 23, 2021

Issue Closes - June 25, 2021

Price Band -  ₹ 290 - 296

Face Value -  ₹1

Issue Size - ~₹800 cr

Bid Lot - 50 Equity Shares

Issue Type - 100% Book building

Company Background

India Pesticides Limited is one of the fastest growing agro-chemicals company in terms of volume of Technicals manufactured. The company is the sole Indian manufacturer of five Technicals and among the leading manufacturers globally for Captan, Folpet and Thiocarbamate Herbicide in terms of production capacity. They have diversified into manufacturing herbicide and fungicide Technicals and active pharmaceutical ingredients. The company also manufactures herbicide, insecticide and fungicide formulations. Technicals are exported to over 25 countries including Australia and other countries in North and South America, Europe, Asia and Africa. The company’s formulations products are primarily sold domestically through their extensive network of dealers and distributors.

Object of the Offer

The IPO offer comprises of a fresh issue and an offer for sale. Out of the fresh Issue of INR 100cr, INR 80cr is proposed to be utilized for working capital requirement of the company and the balance INR 20cr is to be used for general corporate purposes. The balance i.e. INR 700cr of the issue would be through offer for sale by the shareholders and proceeds would go to such selling shareholders.

Financials of India Pesticides Limited

Particulars (Rs million)

FY19

FY20

9MFY21

Revenue from Operations

3,406.88

4,796.27

6,489.54

EBITDA

706.34

1036.56

1894.91

EBITDA Margin (%)

20.73

21.61

29.20

PAT

438.71

705.85

1348.89

PAT Margin (%)

12.68

14.41

20.58

EPS

3.94

6.35

12.07

ROCE (%)

32.33

35.82

45.18

ROE (%)

23.46

27.48

34.63

Net Debt to Equity (x)

0.09

0.06

0.02


Company Strengths

Strong R&D and Product Development CapabilitiesCompetitive Strengths:

India Pesticides Limited has substantial experience in undertaking R&D activities as part of their manufacturing operations. Their R&D places significant emphasis on identification of appropriate complex Technicals that are suitable for commercialization, improving their production processes and the quality of their present products, and manufacturing new off-patent products. Their R&D plays a big role in identifying products that give higher margin and require specialized manufacturing and handling capabilities.

Long-term relationship with key customers

India Pesticides Limited has developed strong and long-term relationships with various multinational corporations that has helped it expand its product offerings and geographic reach for its Technicals business. Several of the company’s customers have been associated with the Company for over 10 years. Company’s major customers include multinational corporations, and hence, 56.71% of its revenue was generated from exports.

Diversified portfolio of niche and quality specialized products

The company has diversified its product portfolio over the years and has grown into a multi-product manufacturer of Formulations, herbicide and fungicide Technicals as well as APIs. The company is the sole Indian manufacturer and among top five globally for several Technicals including, Thiocarbamate herbicide and Folpet. They have obtained registrations from the CIBRC for 22 agro-chemical Technicals and 125 Formulations for sale in India and 27 agro-chemical Technicals and 34 Formulations for export. They also have a license to manufacture from the Department of Agriculture, Uttar Pradesh for 49 agro-chemical Technicals and 158 Formulations.

Key Risk Factor:

  • The top 10 customers constitute a significant portion of the company’s revenue and represent 56.83% of the revenue generated. The loss of one or more such customers could adversely affect business.
  • Increasing use of alternative pest management and crop protection measures such as bio technology products, pest resistant seeds or genetically modified crops may reduce demand for the company’s products and adversely affect business.
  • The availability of counterfeit products passed off by others as their products, could adversely affect the company’s reputation, goodwill and results of operations..

* For complete list of risk factors kindly refer to the Red Herring Prospectus.

See Detail video of India Pesticides Limited IPO :

About 5paisa:- 5paisa is an online discount stock broker that is a member of NSE, BSE, MCX and MCX-SX. Since its inception in 2016, 5paisa has always promoted the idea of self-investment and has ensured that 100% operations are executed digitally with minimal to no human interventions. 

Our all-in-one Demat account makes investment hassle free for everyone, be it an individual newly venturing into the investment market or a pro investor. Headquartered in Mumbai, 5paisa.com - a subsidiary of IIFL Holdings Ltd (formerly India Infoline Limited), is the first Indian public listed fintech company.

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NMDC Share Q4 Results - Latest News

NMDC q4 numbers
by Nikita Bhoota 23/06/2021

State-owned NMDC Ltd recorded a net profit of Rs2,838cr, up 708% for the fourth quarter as against Rs351cr for the corresponding quarter.

The company’s turnover for FY2020-21 is Rs15,370cr as against Rs11,699cr during FY2019-20, registering a growth of 31%.

The company achieved a production of 12.31 million tonnes (MT) of iron ore during the Q4 quarter as against 9.47 MT, up 30% growth, while realising a 29% growth in sales of iron ore 11.09 MT (8.62 MT).

NMDC produced 34.15 million tonnes (up 8%) over 31.49 MT and sold 33.25 million tonnes of iron ore (up 6%) over 31.51 MT during the FY 2021 and FY 2020.

Sumit Deb, CMD, NMDC Ltd said, “this has been an excellent year for the iron and steel sector resulting in these impressive results by Team NMDC, in a year that has been challenging for the economy for more than one reason.”

"All forecasts suggest the global rally in the sector will continue in FY2022, giving us confidence to achieve our targets for FY2022,” Mr. Deb added.

The stock is currently trading at Rs181, down by Rs4.4 or 2.37% from its previous closing of Rs185.40 on the BSE. The scrip opened at Rs189 and has touched a high and low of Rs189.15 and Rs180.35 respectively.

Disclaimer: The above report is compiled from information available on public platforms. These are not buy or sell recommendations.

Source: This content is originally posted on indiainfoline.com
 

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Is Government Planning to exit IDBI Bank

IDBI disinvestment
by Nikita Bhoota 23/06/2021

The department of investment and public asset management (DIPAM) in the finance ministry on Tuesday floated a Request For Proposal (RFP), inviting transaction and legal advisers for strategic disinvestment of IDBI Bank. Once these advisers are appointed, the department would promptly invite expressions of interest (EoIs) for purchase of the stakes on offer and this would likely be by September, as per the media reports. 

How much stake will Government Exit?
As per the plan, the government will exit the bank either by divesting its entire 45.48% stake worth about Rs 19,000 crore at the current market price or a minimum of 26% stake required to transfer management control and promoter Life Insurance Corporation will offer to sell a portion of its 49.24% stake with an intent to surrender management control.

The government diluted its stake in IDBI Bank in January 2019 in favour of LIC, which then became the promoter in the bank with 51% stake. Under a special dispensation, the Insurance Regulatory and Development Authority has allowed LIC to hold 51%, against the norm of 15%. The insurer will, however, have to cut its stake to 15% in due course.

Financial Performance FY21
After a gap of 5 years, the bank was back in the race with a net profit of Rs 1,359 crore for FY21. Following improvement in asset quality, the bank exited the prompt corrective action (PCA) framework on March 10. It can resume corporate lending which was stopped after it came under PCA.

Stock Performance:
IDBI Bank share price has risen 44% to Rs 38.60 as of June 22, 2021 on the BSE, compared lowest closing price in January 2021.

Government Disinvestment Target:
Of the Rs 1.75-lakh-crore disinvestment target for FY22, the government has budgeted Rs 1 lakh crore from disinvestment of government stake in public sector financial institutions and banks such as LIC (IPO) and IDBI Bank strategic sale.

Disclaimer: The above report is compiled from information available on the public platforms. These are not buy or sell recommendations.

About 5paisa:- 5paisa is an online discount stock broker that is a member of NSE, BSE, MCX and MCX-SX. Since its inception in 2016, 5paisa has always promoted the idea of self-investment and has ensured that 100% operations are executed digitally with minimal to no human interventions.

Our all-in-one Demat account makes investment hassle free for everyone, be it an individual newly venturing into the investment market or a pro investor. Headquartered in Mumbai, 5paisa.com - a subsidiary of IIFL Holdings Ltd (formerly India Infoline Limited), is the first Indian public listed fintech company.

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Bharat Electronics Share Q4 Results - Dividend

BEL results
by Nikita Bhoota 23/06/2021

The state-owned aerospace and defence electronics company reported a net profit of Rs 1,352.38 crore in the quarter ended March 2021, up 30.73 percent year-on-year (YoY) compared to Q4 FY20.

The company's sales rose 18 percent to Rs 6,757.05 crore in the quarter ended March 2021 against Rs 5,725.49 crore during the previous quarter ended March 2020.

In FY21, its net profit was up 15.14% to Rs 2065.42 versus Rs 1793.83 crore in FY20, while sales jumped 9.6% to Rs 13818.16 crore from Rs 12607.76 crore.

The company said it has a healthy order book position of Rs 53,434 crore as on April 1, 2021.

The company has recommended a final dividend of Rs 1.20 per equity share (120%) of Rs 1 each for the FY 2020-21.

Shares of Bharat Electronics (BEL) hit over three-year high of Rs 166.45 after rallying 10% on the BSE in intra-day trade on Wednesday after the company reported a strong set of numbers for the quarter ended March 2021 (Q4FY21).

About Bharat Electronics:

BEL, 51% owned by the Government of India, is primarily a supplier of electronic equipment to Indian defence services. It supplies electronic products such as radars, sonar, communication equipment, electronic warfare equipment, and navigation equipment to the Indian defence forces and the civilian sector. The company has nine manufacturing units in India and two central research laboratories − in Bangalore and Ghaziabad.  

Disclaimer: The above report is compiled from information available on public platforms. These are not buy or sell recommendations.

About 5paisa:- 5paisa is an online discount stock broker that is a member of NSE, BSE, MCX and MCX-SX. Since its inception in 2016, 5paisa has always promoted the idea of self-investment and has ensured that 100% of operations are executed digitally with minimal to no human interventions. 

Our all-in-one Demat account makes investment hassle free for everyone, be it an individual newly venturing into the investment market or a pro investor. Headquartered in Mumbai, 5paisa.com - a subsidiary of IIFL Holdings Ltd (formerly India Infoline Limited), is the first Indian public listed fintech company.

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Infosys Rs 9,200 crore Buyback

Infosys share buyback
by Nikita Bhoota 24/06/2021

Infosys Rs 9,200 crore buyback plan is scheduled to commence from June 25, wherein the IT major has proposed to buy back shares at a maximum price of Rs 1,750 per share.

The Board approval for the buyback was granted on April 14, 2021, and the shareholders' nod was received on June 19, 2021, at the company's 40th annual general meeting.

The Bengaluru-based company has issued a public announcement on June 23 in various newspapers for the buyback of its equity shares from the open market through the stock exchange route, a regulatory filing said on Wednesday.

Kotak Mahindra Capital Company Ltd was appointed as the manager of the buyback, it added.

With the buyback shares starting from Friday, the offer to remain open till December 24, 2021, as the last date for the buyback or six months from the date of the opening of the buyback (whichever is earlier). When the company completes the buyback by deploying the amount equivalent to the maximum buyback size.

The company’s advertisement showed, “Subject to the market price of the equity shares being equal to the maximum buyback price, the indicative maximum number of equity shares bought back would be 5,25,71,428 equity shares, comprising approximately 1.23 per cent of the paid-up equity share capital of the company as of March 31, 2021.”

Infosys will utilise at least 50% of the amount earmarked as the maximum buyback size for the buyback i.e. Rs 4,600 crore. Based on the minimum buyback size and the maximum buyback price, the company will purchase an indicative minimum of 2,62,85,714 equity shares.

From FY20, Infosys had enhanced its capital allocation plan and had said it will return 85% of free cash flow cumulatively over a five-year period via buyback and dividends.

In April, Infosys Board had recommended a capital return of Rs 15,600 crore, including a final dividend of Rs 6,400 crore and open market buyback of shares of Rs 9,200 crore.

As per the disclosure of voting results of the Infosys AGM on June 19, the proposal for the buyback offer received 98.83% votes in favour of the proposal and 1.17% against it.

On Wednesday, the stock of the company settled 0.59% lower at Rs 1,502.85 per share on the BSE.

See detailed Video: 

Disclaimer: The above report is compiled from information available on the public platforms. These are not buy or sell recommendations.

Next Article

5 Stocks to Buy this Monsoon

Monsoon stokcs
by Nikita Bhoota 24/06/2021

Normal to above-normal monsoon is a sign of happiness for Indian equity markets. IMD recently predicted an above-normal monsoon 101 percent long-period average (LPA) this year. The stock market usually reacts positively to normal or above-average monsoon as it leads to increased farm production and increased demand from rural areas.

But, this year could be a little different as India has been facing several calamities for the past couple of months that have hampered economic growth and recovery. The recent addition to the ongoing second coronavirus wave is the Cyclone Tauktae and black fungus. While all these disasters keep the table busy, the promise of a good monsoon is a ray of hope that the economy will normalise sooner or later.

The monsoon has lot of significance as it not only improves agricultural activities or demand but also results in employment generation, push auto sales and demand for everything like cement and steel. Thus, from the equity market perspective, tractor, two-wheeler, auto/rural financing, fertilizer and selected FMCG companies will benefit from the good monsoon.

Below, we have discussed, 5 stocks that are likely to benefit from a good monsoon:
 

Company

CMP (Rs)

Target (Rs)*

Stop-Loss (Rs)

Upside

Hero MotoCorp

2,929

3,200

2,700

9.3%

Coromandel International

891

1,100

680

23.5%

Hindustan Unilever

2,480

2,650

2,300

6.9%

Mahindra and Mahindra

782

950

660

21.5%

Kaveri Seeds

731

820

650

12.2%

Source: BSE,5paisa Research, CMP as on 23rd June 2021
*Time Period: minimum 3 months.

Hero MotoCorp
Hero MotoCorp is India’s leading motorcycle manufacturer with ~51% share in the Indian domestic motorcycle market and ~35% share in the domestic 2W market (including scooters). The third year of normal monsoon with increased government spending augurs well for auto companies, such as Hero MotoCorp with large rural market share.

Coromandel International
Coromandel is the flagship company of the Murugappa Group and operates in fertilisers and other agri-input segments. It is India's second-largest producer of phosphatic fertilisers and is particularly strong in the South Indian states of Andhra Pradesh (AP) and Telangana. The forecast of normal rainfall will result in higher volumes in both the fertilizer and crop-protection segments. The company is targeting to increase its revenue share from the high-margin crop protection business with new launches and a diversified product portfolio. The rise in subsidy allocation by the Centre will improve its working capital cycle and generate higher free cashflows in the future.

Hindustan Unilever
HUL is the largest FMCG company with one of the largest footprints in terms of products and distribution networks. A good monsoon is positive for FMCG companies like HUL on account of potential strong demand due to increased farm production and higher disposable income. HUL gets a majority of its revenue from rural India and increased rural income will improve growth.

Mahindra and Mahindra
Mahindra & Mahindra (M&M) has major exposure to the rural economy through its tractor division where it is market leader and commands 41.2% domestic market share as of FY20. The tractor segment would see a quicker revival than other automotive segments post Covid-19 and M&M will be the key beneficiary.

Kaveri Seeds
Kaveri Seeds is one of India's leading seed producers, with a broad product portfolio that includes hybrids for cotton, corn, paddy, bajra, sunflower, sorghum and various vegetables. In addition, in its Microteck division, Kaveri markets micronutrients and organic bio-pesticides. A good monsoon will increase the demand of hybrid seeds, which will benefit the company.