As of 12.15 pm, the issue received applications for 1,00,40,600 shares out of 1,93,10,345 shares on offer. Retail quota was subscribed 1.07 times.
On the block are a fresh issue of up to Rs 100 crore and an offer for sale of up to Rs 700 crore worth of shares. The company intends to utilise the proceeds from the fresh issue to fund working capital requirements and for general corporate purposes.
Most analysts are bullish on the prospects of the IPO of Indian Pesticides, which opened on Wednesday and will run through Friday. Thirty-five per cent of the shares on offer are reserved for retail investors and they can apply in a lot size of 50 shares and multiples thereof.
“We like the financial performance posted by the company with a healthy balance sheet status. As 19 technicals are expected to go off-patent between 2019 and 2026 and an opportunity size of over $4.2 billion is expected due to this by 2026, which company is well poised to cater. As for its technical product, the company is globally cost competitive which helps the company in posting superior margins,” said Astha Jain, Research Analyst at Hem Securities. .
The company is bringing the issue at a price band of Rs 290-296 per share at PE multiple of 25 on post issue FY21 EPS basis. She recommends ‘subscribe’ on the issue both for listing gain and long-term purpose.
At present, India Pesticides operates two manufacturing facilities in Uttar Pradesh, one in Lucknow and the other in Hardoi. The two facilities have an aggregate capacity of 19,500 mt for technicals and 6,500 mt for the formulations vertical.
India Pesticides currently has registrations and licenses for 22 agrochemical technicals and 125 formulations for sale in India and 27 agrochemical technicals and 35 formulations for export purposes.
