About the Company:
KPR Agrochem Ltd is an agri-input Company focused on manufacturing, distribution and retailing of a wide range of crop yield enhancing and protection products.
Company’s product portfolio includes crop protection, crop nutrients, seeds, veterinary feed supplements.
Company has also ventured into manufacturing of sulphuric acid, in order to secure supply of sulphuric acid, one of the key ingredients for the company.
Company produces sulphuric acid as well as other sulphuric acid based chemicals like LABSA and oleum that have wider applications across industries like agrochemicals, veterinary feed supplements, pharmaceuticals, synthetic detergents etc.
Company’s range of product encompasses products across the agri-value chain viz., from seeds to crop nutrients products to crop protection products and also veterinary feed supplements.
Company’s products are distributed from the depots / manufacturing location based warehouses/C & F Agents to a network of approximately 8,000 dealers spread across various states in India.
Company also operates 131 Company operated retail chain stores under the name of “Kisan Seva Kendra” in some districts of Andhra Pradesh, Telangana and Karnataka.
Promoter Group:
KPR Agrochem is a part of the K.P.R. group based out of East Godavari district of Andhra Pradesh. The group has interests in agri-inputs, chemicals, rice mills and poultries.
One of the Promoters, Rajasekhar Reddy Kovvuri along with other partners entered into business of agrochemicals and fertilisers through a partnership firm M/s. Mega Chemicals and Fertilisers on January 17, 2000.
Over the years, company has focused on organic growth by investing to increase the production capacities and diversify the product range from being only a crop protection product company to wide product portfolio based agri-input company.
Company’s Product Portfolio across the Agri-value chain as noted below:
Crop Protection Products – Registrations of 156 formulations from CIB.
Crop Nutrient Products – Single super phosphate, 11 grades of NPK mixture fertilizers, micro nutrients and bio products.
Seeds – 83 variety of seeds spanning various field and vegetable crops for which company has received centralised seed license certification for marketing and/or research and trial marketing.
Veterinary Feed Supplements– Di-calcium phosphate for animal feed and also for use in pharmaceutical industry.
Sulphuric Acid – Production of sulphuric acid and sulphuric acid based chemicals like LABSA and oleum for variety of industrial applications including agrochemicals, pharmaceuticals, etc.
Revenue from various Business Verticals: (in millions)
Company’s Manufacturing Facilities:
KPR Agrochem operates three manufacturing facilities viz one each at Balabhadrapuram and Biccavolu in East Godavari district of Andhra Pradesh and one in Koppal district, Karnataka.
Company also has a seed processing unit is located in Warangal district, Telangana which is operated under our wholly-owned subsidiary Sri Sai Swarupa Seeds Private Ltd.
Company’s Installed Capacity:
KPR Agrochem has an installed capacity of 555,000 MTPA of crop nutrient products, 21,560 MTPA of crop protection products, 32,400 MTPA for veterinary feed supplements, 162,600 MTPA for chemicals and the installed capacity of seed processing unit is 15,000 MTPA.
Company has also set-up a waste heat recovery plant at their manufacturing facility at Biccavolu, East Godavari as well as Koppal, Karnataka to generate power in order to optimally use the steam produced during the manufacturing of sulphuric acid.
The aggregate capacity of the waste heat recovery power plants is 2.5 MW (1.5 MW at Biccavolu, Andhra Pradesh and 1 MW at Koppal, Karnataka) which caters to our captive power requirements at our manufacturing facilities.
Company’s Geographical Expansion Plans:
Currently, company’s products are marketed in Andhra Pradesh, Telangana, Maharashtra, Odisha, Rajasthan, Bihar, Tamil Nadu, Kerala, Karnataka, Punjab, Haryana, Jharkhand and Madhya Pradesh.
Company intends to expand its reach in these states by appointing more dealers. Company also intends to market the products in other parts of India, namely Uttar Pradesh, Himachal Pradesh, Chhattisgarh and West Bengal thereby increasing the footprint.
Competitors for the Company:
Some of the major competitors are Coromandel International Ltd, Chambal Fertilisers and Chemicals Ltd, Rallis India Ltd, PI Industries Ltd, Insecticides India Ltd, Dhanuka Agritech Ltd etc.
Management Team:
- Mr. Papa Reddy Kovvuri (Designation: Chairman and Executive Director)
- Mr. Venkata Mukunda Reddy Karri (Designation: Managing Director)
Objectives of the Issue:
- Repayment/prepayment, in full or part, of certain borrowings availed by the Company.
- To meet additional working Capital requirement of the Company.
- General Corporate Purposes.
Financials of the Company: (Consolidated)
| (in Crores) | FY 15 | FY 16 | FY 17 | FY 18 | 31st Dec 18 |
|---|---|---|---|---|---|
| Revenue | 600.5 | 581.4 | 590.7 | 600.8 | 483.2 |
| Net Profit | 28.2 | 24.3 | 22.7 | 29.6 | 27.5 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| K.P.R. Agrochem Ltd | 10 | 3.47 | 17.57 | 13.34% | 26.01 |
| Coromandel International Ltd | 1 | 22.64 | 19.49 | 21.23% | 106.91 |
| Chambal Fertilisers & Chemicals Ltd | 10 | 11.99 | 13.53 | 19.91% | 60.2 |
| Deepak Fertilizers Ltd | 10 | 18.6 | 7.18 | 8.02% | 231.98 |
| Insecticides India Limited | 10 | 40.78 | 15.80 | 15.39% | 265.07 |
| Excel Crop Care Ltd | 5 | 73.74 | 50.70 | 15.19% | 485.57 |
| Dhanuka Agritech Ltd | 2 | 25.71 | 15.32 | 19.92% | 129.05 |
| Aarti Industries Ltd | 5 | 40.95 | 39.95 | 21.93% | 194.15 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | —–Cancelled—– |
| Issue Closes on:. | —–Cancelled—– |
| Issue Price | Rs.59 – 61 |
| Retail/ Employee Discount | Rs.3 |
| Face Value | Rs.10 |
| Minimum Lot | 200 |
| Minimum Investment | Rs.12,200 |
| Issue Constitutes | 25.82% |
| Issue Size | Rs.283 cr ($40 Million) |
| Market Cap | Rs.731 cr ($104 Million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 1,20,00,000 |
| Equity Shares Offered (Fresh) | 3,44,26,229 |
| Equity Shares Offered (OFS + Fresh) | 4,64,26,229 |
| Equity Shares Prior to the Issue | 8,54,64,000 |
| Equity Shares after the Issue | 11,98,90,229 |
Also Read : IndiaMart InterMesh IPO Review.
Important Dates:
| Finalization of Basis of Allotment | on or Before 5th July 2019 |
| Initiation of Refunds | on or Before 8th July 2019 |
| Credit of Equity Shares: | on or Before 9th July 2019 |
| Listing Date: | on or Before 10th July 2019 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 00:00) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | ||||
| NII | ||||
| Retail | ||||
| Employee | ||||
| TOTAL |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 3.47 | 17.57 | 13.34% | 26.01 |
| Check IPO Allotment Status: |
|---|
Karvy Website (Click on the below Link)http://kosmic.karvy.com:81/ipotrack/ |
| Company Contact Info: |
|---|
| K.P.R. Agrochem Limited Door No. 8 – 256 Tata Nagar, Balabhadrapuram East Godavari – 533 343 Andhra Pradesh, India Telephone: +91 8857 237 367/236 767 Website: www. kpragrochem.com |
| IPO Registrar Info: |
|---|
| KARVY COMPUTERSHARE PRIVATE LIMITED Karvy Selenium Tower B, Plot 31-32, Gachibowli, Financial District, Nanakramguda Hyderabad – 500 032, Telangana, India Telephone: +91 40 67162222 Email:kpragrochem.ipo@karvy.com Website: www.karvycomputershare.com |
| Lead Manager to the Issue: |
|---|
| PL CAPITAL MARKETS PRIVATE LIMITED 3rd Floor, Sadhana House, 570, P. B. Marg, Worli, Mumbai – 400 018, Maharashtra, India. Telephone: +91 22 6632 2222 Email:kpripo@plindia.com Website: www.plindia.com |
