Tag: India Pesticides Limited

India Pesticides shares debut with nearly 22% premium

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Shares of India Pesticides Ltd on Monday got listed with a premium of nearly 22 percent against its issue price of Rs 296. It got listed at Rs 360, registering a gain of 21.62 percent against the issue price on the BSE. The stock then jumped 24.32 percent to Rs 368.

At the NSE, it debuted at Rs 350, witnessing a jump of 18.24 percent. The initial public offer of India Pesticides Limited was subscribed 29 times last month.

The price range for the Rs 800 crore offer was Rs 290-296 per share. India Pesticides is an R&D-focused agrochemical technical company, which has growing formulations business in herbicides, insecticides, and fungicide segments. It also manufactures active pharmaceutical ingredients.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

What’s Afoot: Here’s why India Pesticides is in focus

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Primary market issuances are coming aplenty and many of them are listing at a premium, India Pesticides is one of them.

On NSE, India pesticides is settled at Rs 350 per share and on BSE at Rs 360 per share. That is indicating a listing premium of around 21 percent, in line with what the grey market premium was suggesting.

The Rs 800 crore IPO was subscribed around 29 times overall, 43 times as far as QIBs are concerned and retail subscription was at 11.5 times.

The company already raised Rs 240 crore from anchor investors. At this price, at the higher band, the market capitalization would be around Rs 3,400-3,500 crore.

The objective of the issue was to fund their working capital requirement of Rs 80 crore and also for general corporate purposes.

Post this particular IPO, the promoter shareholding will come down to 72 percent.

Watch the accompanying video of CNBC-TV18’s Sonal Bhutra for more details.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India Pesticides IPO subscribed 29 times on last day

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The initial public offering (IPO) of India Pesticides, one of India’s leading agrochemical manufacturers, has been subscribed 29.04 times so far on June 25, the last day of the bidding process.

The public issue received bids for 56. 07 crore equity shares against the IPO size of 1.93 crore equity shares.

The portion set aside for retail investors has been subscribed 11.30 times while the part for non-institutional investors has been subscribed 51. 88, according to the subscription data available on the exchanges. Qualified institutional investors’ (QIPs) portion received 42.95 times subscription.

The IPO size was reduced to 1.93 crore equity shares after the company raised Rs 240 crore from anchor investors on June 22.

The price band for the offer has been fixed at Rs 290-296 per equity share. The issue closes on Friday. Proceeds from the fresh issue would be used towards funding the working capital requirements and general corporate purposes.

The Rs 800-crore public issue includes a fresh issue of shares worth Rs 100 crore and an offer for sale of shares worth Rs 700 crore by promoters and shareholders.

Read here: India Pesticides IPO opens for subscription on June 23; here are the key things to know

Given the company’s strong R&D capabilities, diversified product portfolio, positioning in the industry, loyal customer base, reasonable valuations, and healthy financials, analysts have given a ‘subscribe’ rating to the IPO.

Read here: India Pesticides IPO opens today: Should you subscribe?

“With company’s focus on increasing its product portfolio, expanding geographical presence, onboarding more customers for newer molecules apart from molecules which are under implementation and already lined up as some of them will be going on stream sometime in Sept-Oct, prospects of the company look strong,” said Hem Securities.

The brokerage recommends ‘subscribe’ on the issue both for listing gain and long-term purposes.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India Pesticides IPO subscribed 3.41 times so far on Day 2

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The initial public offering (IPO) of agrochemical manufacturer India Pesticides has been subscribed 3.41 times so far on June 24, the second day of the bidding process.

The public issue received bids for 6.58 crore equity shares against the IPO size of 1.93 crore equity shares.

The portion set aside for retail investors has been subscribed 5.32 times while the part for non-institutional investors has been subscribed 70 percent, according to the subscription data available on the exchanges till 04:05 pm. Qualified institutional investors’ portion received 2.09 times subscription.

The IPO size has been reduced to 1.93 crore equity shares after the company raised Rs 240 crore from anchor investors on June 22.

The price band for the offer has been fixed at Rs 290-296 per equity share. The issue closes on Friday.

The Rs 800-crore public issue includes a fresh issue of shares worth Rs 100 crore and an offer for sale of shares worth Rs 700 crore by promoters and shareholders.

Read here: India Pesticides IPO opens for subscription on June 23; here are the key things to know

Given the company’s strong R&D capabilities, diversified product portfolio, positioning in the industry, loyal customer base, reasonable valuations and healthy financials, analysts have given a ‘Subscribe’ rating to the IPO.

Read here: India Pesticides IPO opens today: Should you subscribe?

ICICI Direct also assigned a ‘Subscribe’ rating to the issue.

“Since the company caters to a few large formulators globally, the upcoming capacity expansion is likely to improve the economies of scale. Further, technicals being a higher margin segment compared to formulations, increase in revenue share bodes well for return ratios and thereby valuations,” it said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

How to invest in India Pesticides’ IPO via Upstox

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The initial public offering (IPO) of agrochemicals manufacturing company India Pesticides Ltd opened for subscription from June 23-25. The company is offering shares with a face value of Rs 1 in the price band of Rs 290-296 each to raise a total of Rs 800 crore.

The minimum order size is 50 shares and multiples of 50 shares thereafter. The shares will be listed on the BSE and NSE, tentatively on July 5, 2021.

You can also subscribe to this IPO through the discount broking app Upstox.

Here are the steps to do so via the Upstox website/app:

Step 1: Log in to the Upstox application with your credentials.

Step 2: Select the IPO that you want to invest in and create an IPO application (India Pesticides Ltd in this case).

Step 3: Add up to three bids within the price range.

Step 4: Confirm your application.

Step 5: Accept the UPI mandate and block funds on the mobile UPI app.

According to Upstox, monsoon has brought delight to India’s IPO market, which is seeing action after a two-month hiatus. The firm added that it is the best opportunity for investors and traders to add stocks at the offer price.

Also read: India Pesticides IPO subscribed 1.29 times on Day 1

“Indian companies have raised nearly $3 billion so far in 2021, the best start to a year since 2018. This can be attributed to market liquidity, aided by both foreign and retail investors. The gradually recovering economy has boosted investor sentiment, making it an opportune time for companies to list on stock exchanges,” it said.

An EY report showed that there were 17 IPOs in Q4FY21 on BSE and NSE versus one in Q4FY20 and 10 in Q321. This represents an increase of 1,600 percent compared to Q4FY20 and an increase of 70 percent compared to Q3FY21, according to Upstox.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India Pesticides IPO subscribed 1.29 times on Day 1

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The initial public offering (IPO) of agrochemical manufacturer India Pesticides has been subscribed 1.29 times on the first day of the bidding process. The public issue received bids for 2.49 crore equity shares against the IPO size of 1.93 crore equity shares.

The IPO size has been reduced to 1.93 crore equity shares after the company raised Rs 240 crore from anchor investors on June 22.

The portion set aside for retail investors has been subscribed 2.51 times while the part for non-institutional investors has been subscribed 19 percent, according to the subscription data available on the exchanges. Qualified institutional investors have not put in their bids yet.

The price band for the offer has been fixed at Rs 290-296 per equity share. The issue closes on Friday.

The Rs 800-crore public issue includes a fresh issue of shares worth Rs 100 crore and an offer for sale of shares worth Rs 700 crore by promoters and shareholders.

Read here: India Pesticides IPO opens for subscription on June 23; here are the key things to know

Given the company’s strong R&D capabilities, diversified product portfolio, positioning in the industry, loyal customer base, reasonable valuations and healthy financials, analysts have given a ‘Subscribe’ rating to the IPO.

Read here: India Pesticides IPO opens today: Should you subscribe?

“At the upper end of the IPO price band, it is offered at 25.3x of its FY21 earnings, demanding Rs 34,091 million market cap as compared to its other listed peers like Dhanuka Agritech, Bharat Rasayan and Rallis India which are currently trading at a PE of 31.7x, 36.2x and 32.9x respectively,” said Anand Rathi.

The brokerage believes that due to the lower valuations as compared to its peers, India Pesticides is placed at an attractive valuation.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India Pesticides IPO opens today: Should you subscribe?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The initial public offering (IPO) of agrochemical manufacturer India Pesticides opened for subscription on Wednesday. The price band for the offer has been fixed at Rs 290-296 per equity share. The issue closes on Friday.

The Rs 800-crore public issue includes a fresh issue of shares worth Rs 100 crore and an offer for sale of shares worth Rs 700 crore by promoters and shareholders.

Read here: India Pesticides IPO opens for subscription on June 23; Here are key things to know

Given the company’s strong R&D capabilities, diversified product portfolio, positioning in the industry, loyal customer base, reasonable valuations and healthy financials, analysts have given a ‘Subscribe’ rating to the IPO.

“At the upper end of the IPO price band, it is offered at 25.3x of its FY21 earnings, demanding Rs 34,091 million market cap as compared to its other listed peers like Dhanuka Agritech, Bharat Rasayan and Rallis India which are currently trading at a PE of 31.7x, 36.2x and 32.9x respectively,” said Anand Rathi.

The brokerage believes that due to the lower valuations as compared to its peers, India Pesticides is placed at an attractive valuation.

Despite the COVID-19 pandemic, India Pesticides reported a robust financial performance characterised by profitable business growth.

Going forward with the planned expansion and lowering debt, analysts are confident that the company will maintain the growth levels which is mirroring in the pricing of the IPO.

“Further in the recent past, the company has a robust track record of performance and has been generating positive cash flow. We are positive on the long-term prospects of the Company. Hence, we recommend a ‘Subscribe’ rating to this IPO,” Anand Rathi said.

ICICI Direct also assigned a ‘Subscribe’ rating to the issue.

“Since the company caters to a few large formulators globally, the upcoming capacity expansion is likely to improve the economies of scale. Further, technicals being a higher margin segment compared to formulations, increase in revenue share bodes well for return ratios and thereby valuations,” it said.

As for its technical product, India Pesticides is globally cost-competitive which helps the company in posting superior margins.

“With company’s focus on increasing its product portfolio, expanding geographical presence, onboarding more customers for newer molecules apart from molecules which are under implementation &  already lined up as some of them will be going on stream sometime in Sept/Oct, future prospects of the company look strong,” said Hem Securities.

The brokerage recommends “Subscribe” on the issue both for listing gain and long-term purpose.

Choice Broking believes the agro-chemical sector has witnessed various regulatory actions (like the ban of specific set of pesticides and actions from the Pollution Control Board) in recent years, which is a concern. Thus, it has assigned a “Subscribe with Caution” rating for the issue.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India Pesticides IPO opens for subscription on June 23; Here are key things to know

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

India Pesticides will open its initial public offering (IPO) for subscription on Wednesday, June 23. The agrochemical firm is an R&D driven manufacturer of technicals with a growing formulations business and is one of the fastest-growing companies in terms of volume of technicals manufactured.

Here are the key things to know about the India Pesticides IPO:

• The Rs 800-crore public issue will open on June 23 and close on June 25.
• The issue includes a fresh issue of shares worth Rs 100 crore and an offer for sale of shares worth Rs 700 crore by promoters and shareholders. Shares worth Rs 281.4 crore will be sold by promoter Anand Swarup Agarwal and Rs 418.6 crore by other selling shareholders.
• The price band for the issue, which will close on June 25, has been fixed at Rs 290-296 per share.
• The market lot size is 50 shares. A retail-individual investor can apply for up to 13 lots (650 shares or Rs 192,400).
• Of the total issue size, up to 50 percent of the offer will be available for allocation to qualified institutional buyers, up to 15 percent for non-institutional bidders and the remaining 35 percent for retail individual bidders.
• The net proceeds from the fresh issue will be utilised for working capital requirements (Rs 80 crore), and general corporate purposes, while the offer for sale money will go to selling shareholders.
• The shares are likely to be listed on July 5.
• Axis Capital and JM Financial are the book-running lead managers to the issue.

Read here: India Pesticides IPO to open on June 23; price band Rs 290-296

About the company

India Pesticides R&D driven agrochemical manufacturer of Technicals with a growing formulations business. The company has recorded 37.17 percent year-on-year growth in Technicals manufacturing (by volume) between Fiscal 2020 and Fiscal 2021. It 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 is also diversified into manufacturing herbicide and fungicide Technicals and active pharmaceutical ingredients (APIs). It also manufactures herbicide, insecticide and fungicide Formulations.

India Pesticides currently has two manufacturing facilities located at Lucknow and Hardoi in Uttar Pradesh. As of March 31, 2021, the aggregate installed capacity of their manufacturing facilities for agro-chemical Technicals was 19,500 MT and Formulations was 6,500 MT. It has also commenced construction of 2 manufacturing units which are proposed to be used for herbicide Technicals.

As of March 31, 2021, the company’s Technicals are exported to over 25 countries. The revenue generated from exports contributed to 56.71 percent of their revenue in Fiscal 2021.

Strengths

Strong R&D and product development capabilities

A diversified portfolio of niche and quality specialized products

Long-term relationship with key customers

Advanced manufacturing facilities with a focus on the environment, health and safety

Strong sourcing capabilities and extensive distribution network

Consistent track record of financial performance

Experienced promoters and strong management team

Financials

India Pesticides registered a consistent revenue and profitability growth over the last three fiscals. Its revenue from operations increased by 90.48 percent during FY19-FY21.

Technicals are primarily exported and revenue generated from these exports contributed to 56.71 percent of revenue from operations in FY21.

Promoters and Management

Anand Swarup Agarwal and the ASA Family Trust are the promoters of the company. They hold a 46.97 percent pre-offer equity stake in the company. The total shareholding of promoter and promoter group is 82.68 percent.

Anand Swarup Agarwal is the Chairman and non-executive Director of the company.

Rajendra Singh Sharma is a whole-time Director of the company. Rahul Arun Bagaria is the Non-Executive Director, while Adesh Kumar Gupta, Mohan Vasant Tanksale, and Madhu Dikshit are Independent Directors of the company.

Dheeraj Kumar Jain is the Chief Executive Officer of the company, while Satya Prakash Gupta is the Chief Financial Officer of the company.

Analyst’s take

The IPO has been priced at the PE levels of 24.5 times at a higher band of the price range of Rs 296. The company’s overall fundamentals look very attractive and certain analysts have a positive outlook on the IPO.

“As for its technical product, the company is globally cost-competitive which helps the company in posting superior margins. With the company’s focus on increasing its product portfolio, expanding geographical presence, onboarding more customers for newer molecules apart from molecules that are under implementation &  already lined up as some of them will be going on stream sometime in Sept /Oct , future prospects of the company looks strong,” said Hem Securities.

The brokerage firm recommends “Subscribe” on the issue both for listing gain and long-term purpose.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow