As per data available with NSE, the IPO attracted bids for 10,68,70,450 shares, by 12.35 pm which was 5.53 times the total issue of 1,93,10,345 shares. The pesticide manufacturer has fixed the price band of Rs 290-296 for its IPO.
India Pesticides is planning to raise Rs 800-crore via its primary float. The IPO comprises an offer for sale of up to Rs 700 crore and fresh issuance of shares worth up to Rs 100 crore. The issue closes on Friday for subscription.
The quota for qualified institutional investors (QIB) is fixed at 50 per cent and HNI investors will be allocated 15 per cent of the issue. Remaining 35 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.
Most analysts are bullish on the prospects of the IPO of India Pesticides. Astha Jain, Research Analysts at Hem Securities has recommended a ‘subscribe’ on the issue both for listing gain and long-term purpose.
“We like the financial performance posted by the company with a healthy balance sheet status. 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 the 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,” she said.
On Tuesday, the agro-chemicals company raised Rs 240 crores from 12 domestic and foreign anchor investors, allocating 81,08,107 shares at Rs 296 per share.
Six Foreign Portfolio Investors including Abu Dhabi Investment Authority (ADIA), Wells Fargo, Plutus, Millenium, Tara and
were allocated a total of 24,49,335 shares. Amongst the domestic investors, SBI Mutual Fund and Nippon Mutual Fund picked up the largest allocations.
At present, India Pesticides operates two manufacturing facilities in Uttar Pradesh, one 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.
