India Pesticides IPO: UP Agrochemicals Technical Company India Pesticides is preparing to launch an IPO. The company has submitted its application to the market regulator Sebi on 8 February. The company aims to raise Rs 800 crore through an IPO. In the IPO, the company will issue a fresh issue of Rs 100 crore. Apart from this, the promoter of the company Anand Swaroop Aggarwal will reduce his stake in the company under the offer for sale of Rs 281.4 crore. Also, shareholders of the company will sell their stake worth Rs 418.6 crore.
The company and its shareholders are in talks with the book running lead managers to raise Rs 75 crore before the IPO. If there is a pre-IPO placement, the size of the fresh issue will be reduced accordingly.
The funds raised from the India Pesticides issue will be used for capital expenditure and other activities related to the company. The company is a R&D based agro-chemical manufacturer. Its business is also in the formulation segment. It is the fastest growing agro chemical company in the country in the fiscal year 2020, according to a report by F&S.
India Pesticides has two plants in Lucknow and Hardoi in UP. The company has a capacity of 19,500MT in technicals and 6500 MT in formulations. The company currently has registration and license for 22 agro chemical technologies and 124 formulations. In addition, it has formulation license for 27 Agro Chemical Technicals and 34 exports.
India Pesticides is the only Indian company among the top 5 companies in the world in terms of many technicals. The company was started in 1984. It then diversified into segments such as manufacturing herbicide and fungicide technicals and active pharma ingredients (APIs). It also manufactures herbicide, insecticide and fungicide formulations.