India Pesticides Limited’s initial public offering (IPO) issue will open on Wednesday i.e., June 23rd, 2021 and close on June 25th, 2021. The price band for the offering has been fixed at ₹290-296 a share. The company aims to raise ₹800 crore from the IPO which comprises a fresh issue of ₹100 crore and an offer for sale (OFS) of ₹281.40 crore by Anand Swarup Agrawal and ₹418.6 crore by other shareholders and promoters.
Proceeds from the issue will be used for funding working capital requirements. Axis Capital and JM financials are the lead managers to the issue.
Analysts said that Indian Pesticides Limited IPO Grey Market premium has jumped to ₹90-100. ”After the announcement of the price band, India Pesticides’ Grey market premium has jumped to the levels of ₹90- ₹100 and is experiencing volatility. We have seen the same volatility in last week’s IPOs too with premiums stabilising at the end of the IPOs. We expect that the grey market premium for Indian Pesticides Limited will be volatile for the next 2-3 days and recommend that investors should focus more on the fundamentals of the IPO,” Yash Gupta, Equity Research Associate, Angel Broking.
”The IPO has been priced at the PE levels of 24.5 times at a higher band of the price range of ₹296. Company is one of the leading agrochemicals in India with two business verticals. Overall the company has a manufacturing capacity of 19500 Mt for technical and 6500 Mt for formulation. Company overall fundamentals look very attractive. We have a positive outlook for the Indian Pesticides Limited IPO,” he added.
India Pesticides has two operating verticals—technicals and formulations. It operates out of two manufacturing facilities in Lucknow and Hardoi in Uttar Pradesh, having an aggregate capacity of 19,500 MT for technicals and 6,500 MT for the formulations vertical.
It has registrations and licences for 22 agro-chemical technicals and 124 formulations for sale in India, and 27 agro chemical technicals and 34 formulations for exports.
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