India Pesticides Raises Rs 240 Crore From These 16 Anchor Investors, Should You Invest In This IPO?

Agrochemicals manufacturing company India Pesticides has raised Rs 240 crore from 16 anchor investors ahead of its IPO. The company, in its regulatory filing to the stock exchange, stated that the company has issued 81,08,107 equity shares to anchor investors. The company allotted shares to FPIs, mutual funds and insurance companies at the rate of Rs 296.

The FPIs that bought shares of India Pesticides include Abu Ghabi Investment Authority (ADIA), Integrated Core Strategies, Tara Emerging Asia and BNP Paribas. While domestic investors include SBI Mutual Fund, Nippon Mutual Fund, Bajaj Allianz Life Insurance and Bharti AXA Life Insurance.

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Let us tell you that India Pesticides will launch its IPO on June 23 to raise Rs 800 crore. You will be able to subscribe till June 25. The company has fixed the issue price of the share in the price band of Rs 290-296 for this IPO. This IPO will be listed on BSE and NSE.

In the gray market ahead of India Pesticides’ IPO, the company’s unlisted shares are trading at a premium of Rs 90-100 per share from its issue price of Rs 290-296 per share. The Gray Market Premium (GMP) of India Pesticides IPO is Rs 396. Its gray market premium has increased significantly in the last two days.

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Yes Gupta, Equity Research Associate at brokerage firm Angel Trading, says that its GMP will see a lot of volatility in the next few days. Therefore, investors should check the fundamentals of the company before subscribing to this IPO. He said that the share price fixed for this IPO is at 24.5 times PE level at its higher band Rs 296.

Let us tell you that for this IPO, the company will issue fresh shares of Rs 100 crore and existing investors of the company will issue shares worth Rs 700 crore through Offer for Sale (OFS). Axis Capital Limited and JM Financial Limited have been appointed as the lead managers for the book running of this IPO, while KFin Technologies Private Limited is the registrar.

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India Pesticides promoter Anand Swarup Agarwal will issue shares worth Rs 281.4 crore in this IPO. At the same time, other shareholders will issue shares worth Rs 418.6 crore. The company will use the funds raised from fresh shares issued in this IPO to meet its working capital and corporate requirements.

Let us tell you that India is included in the world’s top 5 companies producing pesticides Folpet and Thiocarbamate Herbicide Chemicals. The listed peer companies of India Pesticides are Dhanuka Agrotech Ltd., Bharat Rasayan Ltd., UPL Ltd., Rallis India, PI Industries, Sumitomo Chemical India and Atul India.

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