India Pesticides Rs 800-cr IPO to open on June 23

Hyderabad: The IPO price band for India Pesticides Ltd, an R&D driven agro-chemical company, has been fixed at Rs 290-296 per share. The issue will open on June 23 and close on 25 June.

The company aims to raise Rs 800 crore with a fresh issue, aggregating up to Rs 100 crore and an offer sale of Rs 700 crore. The company intends to utilize the proceeds from the fresh issue to fund its working capital requirements and for general corporate purposes.

All bidders (except anchor investors) are required to mandatorily utilise the application supported by blocked amount (ASBA) process providing details of their respective bank account, in which the corresponding bid amounts will be blocked by the SCSBs or the sponsor bank, as applicable. Anchor investors are not permitted to participate in the offer through the ASBA process.

The company currently operates two manufacturing facilities out of the Lucknow and Hardoi in Uttar Pradesh having 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.

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. Certain key fungicide technicals that the company manufactures include: Folpet - used to manufacture fungicides that control fungal growth at vineyards, cereals, crops and biocide in paints, and Cymoxanil which is used to manufacture fungicides that control downy mildews of grapes, potatoes, vegetables and several other crops. Major herbicide technicals that the company manufactures include thiocarbamate herbicides that have application in field crops, such as, wheat and rice, and are used globally.