Advance Agrolife shares make a decent market debut; stock list at 14% premium

Shares of Advance Agrolife made a decent Dalal Street debut on Wednesday, October 08 as the agrochemicals products player settled at Rs 114 on NSE, a premium of 14 per cent over its issue price of Rs 100 per share. Similarly, the stock kicked-off its maiden trading session with a premium of 13 per cent over the issue price at Rs 113 on BSE.

Listing of Advance Agrolife has been on the expected lines. Ahead of its listing, Advance Agrolife was commanding a grey market premium of Rs 15 per share in the unofficial market, suggesting a listing pop of 14 per cent for the investors. The GMP stood at Rs 20 per share during the bidding phase.

As of their listing price, retail investors, who receive a single lot of 150 equity shares, made a profit of Rs 2,100 on their investment of Rs 15,000. Similarly, HNI investors, who received 14 lots consisting of 2,100 equity shares worth Rs 2,10,000 made a profit of Rs 29,400 on their investment.

The IPO of Advance Agrolife was open for bidding between September 30 and October 03. It had offered its shares in the price band of Rs 95-100 per share with a lot size of 150 shares. The company raised a total of Rs 192.86 crore via IPO, which was entirely a fresh share sale of 1,92,85,720 equity shares.

The issue was overall subscribed 56.85 times fetching nearly 10 lakh applications and bids for worth Rs 7,700 crore. The allocation for the qualified institutional bidders (QIBs) was booked 27.31 times, while the portion for non-institutional investors' (NIIs) was subscribed 175.30 times. However, the retail investors' and employee quota were booked 23.06 times and 38.42 times, respectively.

Incorporated in 2002, Jaipur-based Advance Agrolife is engaged in the manufacturing of a wide range of agrochemical products that support the entire lifecycle of crops. The company's products are used in cultivating major cereals, vegetables, and horticultural crops across both Kharif and Rabi seasons in India.

Brokerage firms were mostly positive on the issue, suggesting to subscribe to the issue for long-term Choice Capital Advisors was the sole book running lead manager for Advance Agrolife IPO and Kfin Technologies served as the registrar of the issue.