India Pesticides files DRHP for Rs 800-crore IPO

NEW DELHI: India Pesticides on Wednesday filed the draft red herring prospectus (DRHP) for a Rs 800 crore initial public offering (IPO).

The R&D-focused agrochemical technical company is looking to raise Rs 100 crore via fresh issuance and Rs 700 crore through an offer for sale (OFS) by promoters.

Promoter Anand Swarup Agarwal is looking to sell Rs 281 crore worth of shares in the OFS, while the other selling shareholders intend to offload Rs 419 crore worth of shares.


The company may decide to undertake a pre-IPO placement of Rs 75 crore, subject to consultation with the merchant bankers.

Incorporated in 1984, the company is engaged in the formulations business in herbicides, insecticides and fungicide segments. It also manufactures active pharma ingredients (APIs). The company operates two manufacturing facilities in UP with an aggregate capacity of 19,500 mt for technicals and 6,500 mt for the formulations verticals.

It currently has registrations and licences for 22 agrochemical technicals and 124 formulations for sale in India and 27 agrochemical technicals and 34 formulations for export purposes.

The company counts Syngenta Asia Pacific, United Phosphorus, Ascenza Agro, Conquest Crop Protection, ShardaCropchem and Stotras among its customers.

India Pesticides has proposed to utilise the net proceeds for funding working capital requirements and general corporate purposes.

Axis Capital and JM Financial are the book-running lead managers to the issue while KFin Technologies has been appointed the registrar.