India Pesticides Ltd IPO

Closed

Subscription Details

  • Open Date 23 Jun
  • Close Date 25 Jun
  • Lot Size 50
  • IPO Size ₹ 800.00 -816.55 Cr
  • IPO Price Range ₹ 290-296
  • Min Investment ₹ 14500

India Pesticides Ltd IPO Timeline

Open Date
23 Jun
Close Date
25 Jun
Basis of Allotment
30 Jun
Refunds
01 Jul
Credit to Demat Account
02 Jul
Listing Date
05 Jul

IPO Synopsis

The 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.

About India Pesticides Ltd

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.

Financials of India pesticides

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.

How to apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

Contact Details of India Pesticides Ltd IPO

Contact Information

Address

India Pesticides Limited
35-A, Civil Lines
Bareilly 243 001,


Phone: +91 05812567459
Email: investor@indiapesticideslimited.com
Website: https://www.indiapesticideslimited.com/

India Pesticides Ltd IPO Register

Address

KFintech Private Limited

Email: ipl.ipo@kfintech.com

Website: https://karisma.kfintech.com/

India Pesticides Ltd IPO Lead Manager

  1. Axis Capital Limited
  2. JM Financial Consultants Private Limited
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