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India Pesticides files paperwork to raise Rs 800 crore from IPO

Agrochemical technicals company India Pesticides has filed preliminary papers with capital markets watchdog Sebi

IPO | Chemicals | Agriculture

Press Trust of India  |  New Delhi 

Representational image of an IPO

Agrochemical technicals company India Pesticides has filed preliminary papers with capital watchdog Sebi to raise Rs 800 crore through an initial share sale.

The public offer comprises fresh issuance of shares amounting to Rs 100 crore and an offer of sale of Rs 700 crore bypromoter and technocrat, Anand Swarup Agarwal and other shareholders, according to draft red herring prospectus.

The Uttar Pradesh-based company may decide to undertake a pre-placement of Rs 75 crore subject to consultation of the merchant bankers.

Proceeds of the fresh issue would be used towards funding the working capital requirements and general corporate purposes.

Further, the company expects to receive the benefits of listing of the equity shares, including to enhance the visibility and brand image among the existing and potential customers.

India Pesticides is an R&D focused agrochemical technical company, whichhas growing formulations business in herbicides, insecticides and fungicide segments. It also manufactures active pharmaceutical ingredients (APIs).

It is the only Indian manufacturer and amongst the top fivecompanies globally for several technical products such as folpet and cynomoxanil, used to make fungicides that control fungal growth across a variety of crops.

India Pesticides currently operates from two manufacturing facilities at Lucknow and Hardoi in Uttar Pradesh with an aggregate capacity of 19,500 MT for technicals and 6,500 MT for the formulations vertical.

Axis Capital and JM Financial have been appointed as merchant bankers of the issue.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Wed, February 10 2021. 15:44 IST