India Pesticides makes a decent debut, list at 21.62% premium

Shares of agrochemical manufacturer India Pesticides made a decent market debut on Monday. The stock opened for trading at Rs 360 on the BSE, compared to the issue price of Rs 296, marking a premium of 21.62%. The scrip opened at Rs 350, at a premium of 18.24% on the BSE.

The Rs 800-crore initial public offer (IPO) of India Pesticides Limited was subscribed 29 times on the closing day of the subscription on Friday. The issue received bids for 56,07,11,650 shares against 1,93,10,345 shares on offer, as per NSE data. Qualified Institutional Buyers (QIBs) category was subscribed 42.95 times, non-institutional investors 51.88 times, and those for Retail Individual Investors (RIIs) 11.30 times.

The initial public offer (IPO) comprised a fresh issue of Rs 100 crore and an offer for sale of Rs 700 crore. Proceeds from the fresh issue would be used towards funding the working capital requirements and general corporate purposes.

India Pesticides Limited (IPL) is one of the leading agrochemicals manufacturers in India. The company operates in two business verticals; technicals & formulations. It manufactures herbicide, fungicide Technicals, and Active Pharmaceuticals Ingredients (APIs). 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 agrochemicals technical and 124 formulations for sale in India, and 27 agrochemicals technical and 34 formulations for exports.

On the financial front, the company reported total revenue of Rs 655.37 crore in FY21 compared to Rs 346.04 crore in FY18. Whereas its profit after tax grew to Rs 134.53 crore versus Rs 43.92 crore during the same period.