Agrochemical company India Pesticides Ltd (IPL) has received capital markets regulator Sebi's nod to float an initial public offer (IPO). On February 10, the lucknow-based firm had filed draft red herring prospectus (DRHP) with SEBI for a Rs 800 crore initial public offering (IPO). The firm plans to raise Rs 800 crore through a public issue.
The IPO comprises fresh issuance of shares worth Rs 100 crore and an offer of sale through promoter and selling shareholders, aggregating up to Rs 700 crore. Promoter Anand Swarup Agarwal intends to sell shares worth Rs 281 crore while other shareholders will offer shares worth Rs 419 crore.
The firm may undertake a pre-IPO placement of Rs 75 crore, subject to consultation with merchant bankers.
Axis Capital Limited and JM Financial Limited are the book running lead managers of the issue, while KFin Technologies Private Limited is the registrar.
It is the only Indian manufacturer and among the top-five companies globally for several technical products such as folpet and cymoxanil, used to make fungicides that control fungal growth across a variety of crops, as per the company's DRHP.
The company has two manufacturing facilities in Uttar Pradesh with an aggregate capacity of 19,500 MT for technical and 6500 MT for the formulations vertical. It has licenses for selling 22 agrochemical technical and 124 formulations in India. And it exports some 27 technical and 34 formulations.
Revenue from operations for fiscal 2020 and the six months ended 30 September came at Rs 479.6 crore, and Rs 333.8 crore, respectively. The company reported a profit of Rs 70.5 crore and Rs 72.2 crore for these periods.
India Pesticides is an R&D-focused agrochemical technical company, which has growing formulations business in herbicides, insecticides and fungicide segments. It also manufactures active pharmaceutical ingredients (APIs).