India Pesticides Limited is one of the globally operated Agro-chemical manufacturers in India, which pioneered manufacturing since 1984. They are one of the fastest growing agro-chemical companies in India in fiscal 2020 by volume. India Pesticides IPO will hit the market in 2021.
Table of Contents
Production
They are the only Indian manufacturer and among the top five manufacturers globally for several technologies, eg, folate, thiocarbamate herbicide etc.
Since starting their operations in 1984, they have diversified into the manufacture of herbicide and fungicide technical and active pharmaceutical ingredients (“APIOs”).
Their limitations of quality products and value-added services make us a strategic supplier. They have a strategic focus on R&D and our R&D capabilities include two well-equipped in-house laboratories registered with DSIR.
Their main clients are UPL, Syngenta, Ascenza , Stotras , Sharda cropchem and Conquest.
Manufacturing Units
On January 18, 2021, They incorporated a subsidiary, Shalvis Specialties Limited, which intends to conduct manufacturing activities engaged in a variety of useful chemicals and chemical products.
They currently operates 2 manufacturing facilities one in Lucknow and other one in Hardoi, Uttar Pradesh, with a total capacity of 19,500 MT for technical and 6500 MT for technical works.
Products
The company currently has registrations and licenses for 22 agrochemical technologies and 124 formulations for sale in India and 27 formulations for agrochemical technical and export purposes.
Business Approach
- To enhance their product line, they will maintain an emphasis on R&D and system development.
- Expand the customer reach and profit share with current clients.
- Take advantage of business opportunities
- Growth strategy helps to expand the market and international reach.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Sep-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | ||
| Total Assets | 110.76 | 110.56 | 83.80 | 79.81 | |
| Total Revenue | 337.24 | 489.73 | 346.04 | 255.86 | |
| Profit After Tax | 72.50 | 70.80 | 43.92 | 32.81 | |
Basic and Diluted Earnings Per Share (EPS)
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2020 | 6.35 | 6.35 | 3 |
| Financial Year 2019 | 3.94 | 3.94 | 2 |
| Financial Year 2018 | 2.94 | 2.94 | 1 |
| Weighted Average | 4.98 | 4.98 | |
| (6 months) Sep 30, 2020 | 6.51 | 6.51 | – |
Issue
India Pesticides had drafted the Red Herring Prospectus (DRHP) to raise public Rs 800 crore through Initial Public Issue (IPO) on 10 February 2021. The public offer will include a offer-for-sale(OFS) by the promoter of Rs 700 crore and fresh issue of Rs 100 crore.
The firm may decide to place a Pre-IPO placement of INR 75 crore after consultation with merchant bankers. Securities and Exchange Board of India (SEBI) has approved the drafted the Red Herring Prospectus on 03 may 2021 to launch the IPO.
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives
Basis of the Offer
The business, in consulting with the Lead manager, determines the issue price based on the subjective and statistical things described below.
The following are suitable qualitative factors:
- R&D and material growth expertise are solid.
- A broad range of specialty and high-quality specialized goods.
- Relationships with main consumers that are long-term.
- Climate, health, and safety are prioritized in specialized production plants.
- Powerful procurement skills and a large distribution network.
India Pesticides IPO Details
| IPO Opening Date | 23 June 2021 |
| IPO Closing Date | 25 June 2021 |
| Issue Type | Book Builting |
| Face Value | 1 per share |
| IPO Price | 290 to 296 per equity share |
| Market Lot | 50 |
| Min Order Quantity | 50 |
| Listing At | BSE, NSE |
| Issue Size | 800 Cr |
| Fresh Issue | 100 cr. |
| Offer for Sale | 700 cr. |
India Pesticides IPO Tentative Date
The IPO opening date is 23 June, 2021, and the closing date is 25 June, 2021. The issue may list on 05 July, 2021.
| IPO Open Date | 23 June 2021 |
| IPO Close Date | 25 June 2021 |
| Basis of Allotment Date | 30 June 2021 |
| Initiation of Refunds | 01 July 2021 |
| Credit of Shares to Demat Account | 02 July 2021 |
| IPO Listing Date | 05 July 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 50 |
Roughly
equivalent
|
| Non Institutional Investor | 15 |
Roughly
equivalent
|
| Retail | 35 | Minimal level of 1 lot, based on availability, for every shareholder. |
India Pesticides IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of India Pesticides IPO.
India Pesticides IPO Promoters
- Anand Swarup Agarwal
- The ASA family Trust
Promoter Holding
| Pre Issue Share Holding | 46.97% |
| Post Issue Share Holding |
India Pesticides IPO GMP (India Pesticides Limited IPO GMP)
India Pesticides IPO Grey market premium is as follows and you can check GMP of other IPOs as well from links given below:
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| 04 July 2021 | 55 | 2700 | 600 |
| 03 July 2021 | 52 | 1800 | 500 |
| 02 July 2021 | 48 | 1200 | 600 |
| 01 July 2021 | 56 | 3500 | 500 |
| 30 June 2021 | 54 | 1500 | 500 |
| 29 June 2021 |
69 | 3100 | 600 |
| 28 June 2021 | 67 | 4100 | 500 |
| 27 June 2021 | 59 | 2500 | |
| 26 June 2021 | 63 | 1800 | |
| 25 June 2021 | 55 | 2800 | |
| 24 June 2021 | 89 | 1800 | |
| 23 June 2021 | 95 | 3200 | |
| 22 June 2021 | 100 | 4200 | |
| 21 June 2021 | 150 | 3500 | |
| 20 June 2021 | 155 | 2500 | |
| 19 June 2021 | 165 | 1500 | |
| 18 June 2021 | 160 | ||
| 17 June 2021 | 173 |
Check The GMP Of other IPOs
Clean Science and Technology IPO
India Pesticides IPO Review
India Pesticides IPO is good. You can apply for listing gain & with long term view as well. Company has diversified Portfolio of products and management is also well known.
- Experienced Promoters
- Growth-oriented company
- Positive Cashflow despite regular CAPEX
- Debt-free company
- Reasonable valuations with 41% ROE
Major Risk
Their are the major risks in their business:
Certifications
In the normal course of business, they need various approvals and permits, including certifications from the Central Insecticides Board and Registration Committee (“CIBRC”) for our goods manufactured and marketed in India, as well as for exports to other countries.
Failure to obtain such certifications, as well as to renew or hold our legal and regulatory licences and permissions necessary to drive their business and production facilities, would have a negative impact on their operations, financial performance, and results of operations.
Technical Requirement
Their clients, which include a variety of international organisations, hold us to tight technical specifications, quality criteria, and regular checks and audits.
Lack to meet the quality requirements and specific requirements set forth by such clients may result in the loss of business from those customers, as well as a negative impact on their reputation, affecting overall business prospects and operating results.
Regulations
They must follow to the suitable criteria of the international markets to which they export their products, as well as receive registrations from international agencies through their clients to allow their products to be exported to other countries. Furthermore, their international activities are susceptible to regulatory risks that may have a negative impact on their company and financial results.
Market Trends
Their inability to recognize and comprehend changing market trends, technical breakthroughs, and client preferences, as well as design new goods to fulfill their needs, may have a negative impact on their organisation.
Climate
Their agrochemicals business is influenced by climatic situations, the total area under cultivation, and the farming society’s cropping patterns. Seasonal changes and unfavourable local and worldwide weather patterns may have a negative effect on the business, financial performance, and financial situation.
Strikes and lockouts
Strikes and lockouts, for example, might have a material and negative impact on their business, financial health, and results of operations if they occur unannounced, unplanned, or for an extended period of time.
Forex
Because their export sales and a part of their expenditures are based in foreign currencies, they face foreign exchange risks that could harm their results of operations.
Standards
Failure to meet the quality standard norms recommended by the central and state governments in India, and also governments in other nations where we export their products, could consequence in sales of their products being blacklisted or disqualified, or subjecting us to significant compliance costs, all of which could have a material impact on their business growth and opportunities, operating results, and financial position.
Environmental
Environmental and worker health and safety legislation and rules apply to our operations. In the event of an incident or non-compliance with environmental and other similar legislation and rules, They may have to incur material costs to comply with these legislation, or They may face material obligations or impacts, which could harm their reputation, company, financial performance, or financial condition.
India Pesticides IPO Brokerage views
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India Pesticides IPO Subscription
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| 23 June 2021 | Day 1 | 0.00 | 0.19 | 2.51 | N/A | 1.29 |
| 24 June 2021 | Day 2 | 2.35 | 0.93 | 6.00 | N/A | 3.87 |
| 25 June 2021 | Day 3 | 42.95 | 51.88 | 11.30 | N/A | 29.04 |
Peer Comparison
| S. No. | Company Name | PE |
| 1 | Dhanuka Agritech Limited | 26.08 |
| 2 | Bharat Rasayan Limited | 27.46 |
| 3 | UPL Limited | 24.15 |
| 4 | Rallis India Limited | 30.41 |
| 5 | PI Industries Limited | 76.67 |
| 6 | Sumitomo Chemical India Limited | 21.00 |
| 7 | Atul Ltd | 29.26 |
India Pesticides IPO Prospectus
Contact Details
35-A, Civil Lines, Bareilly,
243 001 Uttar Pradesh, India
Tel: +91 0581 2567459
E-mail: [email protected]
Registrar
KFin Technologies Private Limited
Selenium Tower-B, Plot 31 & 32, Gachibowli
Financial District, Nanakramguda, Serilingampally
Hyderabad 500 032
Telangana, India
Tel: +91 40 6716 2222
E-mail: [email protected]
Website: www.kfintech.com
Lead Manager(s)
- JM Financial Limited
- Axis Capital Limited
We hope we are able to answer all your questions about this IPO. If you don’t have a Demat account, open it now with Zerodha best trading app.
Clarification
- The reference of india pesticides limited ipo grey market premium(india pesticides limited ipo GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms. - The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
- Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
- The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
We do not engage in grey market trading or facilitate the purchase or sale of IPO forms.
What is grey Market?
The phrase “grey market” refers to an illegal over-the-counter market where IPO applications and IPO stock are traded before the entity is listed on a stock exchange. This is a technique for dealers to help consumers who wish to sell their home before it goes on the market.
This is also a way to increase the listing fee and provide help for the issue prior to the listing. In the IPO grey market, there are two types of transactions that take place:
- IPO stocks are traded at a premium in the grey market.
- At a kostak, an IPO application is traded.
What is grey Market Premium?
The Grey Market Premium, or GMP, is the price at which initial public offering (IPO) stock shares are traded in the grey market.
This could be right or wrong, suggesting that, depending on demand and supply for the stocks, the grey market trading price is higher or lower than the issue price.
Individuals who do not want to take the risk of their shares not being allotted through an IPO can typically buy shares on the grey market and then sell them at a profit during the IPO.
What is Kostak?
The additional amount in rupees at which IPO applications are sold in the IPO Grey Market is known as kostak (or price of application). The bonus of a maximum lot retail application in an IPO is generally described as the ‘Kostak’ value.
The Kostak price is significant primarily before the offer is closed for subscription and the ultimate bidding status is made accessible to IPO participants. After the final auction status is known to investors, only a small percentage of IPO applications are exchanged.
‘Kostak’ is made for those who do not want to incur a risk on an IPO or gain from a listing.
Example:
india pesticides limited
Issue Price: Rs 306 Per Equity Share (Maximum Bid price)
Lot Size: 45
Grey Market Premium: Rs 220 to Rs 230
Kostak (Rs 13770): Rs 680 to Rs 720
This means india pesticides limited applications of Rs 13770 are being traded in IPO Grey Market at Rs 680 to Rs 720.
Despite the fact that this india pesticides limited ipo grey market premium is roughly 75% of the issue price, the ‘Kostak’ is just 5% of the application value.
Kostak rate
The Kostak rate is the fee received by an investor who sells his or her IPO application on the grey market. Regardless of allotment status, this is the money an individual stands to gain.
Subject to Sauda
The subject to Sauda is the money that an investor stands to make by selling his or her application for firm allotment. The key operative term here is “firm allocation.” If the applicant is not assigned, the sauda will be cancelled.
When a client and seller agree to sell an IPO application in the grey market, they agree that the sale will be lawful only if the seller receives the allocation. If the seller does not receive any stocks throughout the IPO process, the agreement is cancelled.
FAQ
When India Pesticides IPO will open?
The India Pesticides IPO will open on 23 June 2021.
India Pesticides IPO listing date?
They India Pesticides IPO will list on 05 July, 2021.
India Pesticides IPO GMP today?
India Pesticides IPO Grey Market Premium is INR 55.
Lot size for India Pesticides IPO?
Lot size for India Pesticides IPO is 50.
India Pesticides IPO Allotment Date?
The India Pesticides IPO Allotment date is 30 June 2021.
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