By Dominick Rodrigues
Lucknow : India Pesticides Limited, an R&D driven agro-chemical manufacturer of Technicals, is launching its initial public offering (IPO) of Equity Shares from June 23 to June 25 at Rs. 290 – Rs. 296 per Equity Share, aggregating to total Rs 800 crores.
The Company intends to utilize the proceeds from the Fresh Issue to fund its working capital requirements and for general corporate purposes.
Replying to questions, Anand Swarup Agarwal, Chairman and Non-Executive director, said the company is presently dealing with global companies and would be looking at getting into Biopesticides in the future.
Describing the company as R&D driven with focus on increasing production portfolio, he said multinational companies are looking at India from a new perspective, while India Pesticides Limited’s revenue continued growing from Rs 171 crores to Rs 368 crores – and EBITDA from 21% in 2019 to 29% — in this financial year.
Highlighting increasing demand to produce more quantity on agricultural land, he said the company’s emphasis is on producing quality and sustainable herbicides and fungicides for growth of crops like grapes, potatoes, vegetables like okra etc.
Noting that developed countries are using fungicides and herbicides while developing countries continue to use pesticides with india being the lowest such consumer, he said the company is earning 65% revenue from exporting its products to 25 countries and is eyeing setting up of advanced manufacturing facilities that focus on environment, health and safety.
The Company is the sole Indian manufacturer of five Technicals and among the leading manufacturers globally for Captan, Folpet and Thiocarbamate Herbicide, in terms of production capacity. The Company manufactures: Folpet — for use in making fungicides that control fungal growth at vineyards, cereals, crops and biocide in paints; and (ii) Cymoxanil — used in making fungicides that control downy mildews of grapes, potatoes, vegetables and several other crops.
Major herbicide Technicals made by the Company include, Thiocarbamate herbicides that have application in field crops, such as, wheat and rice, and are used globally.
The Company currently operates out of two manufacturing facilities in Lucknow and Hardoi in Uttar Pradesh with an aggregate capacity of 19,500 MT for Technicals and 6,500 MT for the Formulations vertical. It currently has registrations and licenses for 22 agro-chemical Technicals and 125 Formulations for sale in India, and 27 agro chemical Technicals and 35 Formulations for exports purpose. Axis Capital Limited and JM Financial Limited are the BRLMs to the Offer.
