About the Company:
India Pesticides Ltd is among the fastest growing agro-chemical companies in India in terms of volume.
Company is an R&D driven agro-chemical manufacturer of Technicals with a growing Formulations business.
Company is also the sole Indian manufacturer and among top five manufacturers globally for several Technicals, such as, Folpet and Thiocarbamate
Herbicide. Company also manufactures herbicide, insecticide and fungicide Formulations.
Since commencing operations in 1984, Company has diversified into manufacturing herbicide and fungicide Technicals and active pharmaceutical ingredients (“APIs”).
As of March 31, 2021,Company’s Technicals are exported to over 25 countries including Australia and other countries in Europe, Asia and Africa.
Company’s Formulations products are primarily sold domestically through extensive network of dealers and distributors.
Company has a diverse customer base that includes crop protection product manufacturing companies, such as, Syngenta Asia Pacific Pte. Ltd, UPL Limited, ASCENZA AGRO, S.A., Conquest Crop Protection Pty Ltd, Sharda Cropchem Limited and Stotras Pty Ltd.
Company operates in two verticals, namely,
Technicals: Company manufactures generic Technicals that are used in the manufacture of fungicides and herbicides as well as APIs with applications in dermatological products.
Major herbicide Technicals we manufacture include Thiocarbamate herbicides that have application in field crops, such as, wheat and rice, and are used globally. The APIs we manufacture have anti-scabies and anti-fungal applications.
In Fiscals 2019, 2020 and 2021, revenues from our Technicals segment amounted to Rs.2,56.6 crores, Rs.3,83.2 crores and Rs.5,06.8 crores, respectively, which constituted 75.43%, 80.19% and 78.87%, respectively, of our revenue from sale of products.
Formulations: Company manufactures and sell various formulations of insecticides, fungicide and herbicides, growth regulators and Acaricides, which are ready-to-use products. As of September 30, 2020, company manufactures over 30 Formulations that include Takatvar, IPL Ziram-27, IPL Dollar, IPL Soldier and IPL Guru.
In Fiscals 2020 and in the six months ended September 30, 2020, revenues from our Formulations segment amounted to Rs.94.6 crores, Rs.74.1 crores, respectively, which constituted 19.81% and 22.48%, respectively, of our revenue from sale of products.
In Fiscals 2019, 2020 and 2021, revenues from our Formulations segment amounted to Rs.83.6 crores Rs.94.6 crores and Rs.1,35.7 crores, respectively, which constituted 24.57%, 19.81% and 21.13%, respectively, of our revenue from sale of products.
Revenue from Sale of Products:
Company’s Customers:
Company’s customer base currently comprises a number of multinational, regional and local companies such as ASCENZA AGRO, S.A., Conquest Crop Protection Pty Ltd, Sharda Cropchem Limited, Syngenta Asia Pacific Pte. Ltd., Stotras Pty Ltd and UPL Ltd.
Company’s Manufacturing facilities:
Company currently has two manufacturing facilities located at UPSIDC Industrial Area at Dewa Road, Lucknow and Sandila, Hardoi in Uttar Pradesh, India that are spread across over 25 acres.
The manufacturing facilities are equipped with modern plant and machinery capable of producing quality Technicals and Formulations.
Company’s Installed Capacity:
The aggregate installed capacity of our manufacturing facilities for agro-chemical Technicals was 19,500 MT and Formulations was 6,500 MT.
Company’s Exports:
As of March 31, 2021, company’s products were exported to over 25 countries including Australia and other countries located in North and South America, Europe, Africa and Asia.
In Fiscals 2019, 2020 and 2021, revenue from operations from exports accounted for 50.13%, 62.12% and 56.71%, respectively, of our total revenue from operations in such periods.
The leading countries where we exported our products in Fiscal 2021 were Australia, France, Belgium, Spain, Portugal, Japan, Mexico, Georgia, Iran and Israel.
Company’s Competitors:
The Indian agro-chemicals industry is fragmented in nature and we face competition from different domestic and global manufacturers for different products that we manufacture.
In the domestic markets, company’s competitors include companies such as UPL Ltd, PI Industries Ltd and Jubilant Lifesciences Ltd.
while in the international markets, company faces competition from companies, especially companies such as China National Corporation Limited, Sumitomo Chemicals Co. Limited and BASF SE, in the manufacture of agro-chemicals.
Management Team:
- Mr. Anand Swarup Agarwal (Designation: Chairman and Non-executive Director)
- Mr. Rajendra Singh Sharma (Designation: Whole-time Director)
Objectives of the Issue:
Offer for Sale: (Rs. 700 cr)
- The proceeds of the Offer for Sale shall be received by the Selling Shareholders. Our Company will not receive any proceeds from the Offer for Sale.
Fresh Issue: (Rs. 100 cr)
- Funding working capital requirements of the Company.
- General corporate purposes.
Positives for the Company:
- Strong R&D and product development capabilities.
- Diversified portfolio of niche and quality specialized products.
- Long-term relationship with key customers.
- Advanced manufacturing facilities with focus on environment, health and safety.
- Strong sourcing capabilities and extensive distribution network.
- Expand our business and geographical footprint through inorganic growth.
India’s Advantage over China.
- China-United States Trade War: United States being one the key markets for both actives and formulations would actively seek alternates for most products, and also look at reducing dependency on China to a large extent. This is expected to increase the trade with India and has been considered as the most suitable alternate.
India – Racing Ahead of China.
- Exports are increasing as India is becoming a central manufacturing hub for such chemicals. Tightening of environmental norms, for example REACH Regulations, in developed countries and the slowdown of China are contributing to the growth of exports.
Financials of the Company: (Consolidated)
| (in Crores) | FY 18 | FY 19 | FY 20 | FY 21 |
|---|---|---|---|---|
| Revenue | 255.8 | 346.0 | 489.7 | 655.3 |
| Net Profit | 32.8 | 43.9 | 70.7 | 134.5 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| India Pesticides Ltd | 1 | 12.07 | 24.52 | 34.54% | 34.94 |
| Dhanuka Agritech Ltd | 2 | 29.71 | 31.70 | 19.45% | 148.72 |
| Bharat Rasayan Ltd | 10 | 371.03 | 36.12 | 27.83% | 1,327.73 |
| UPL Limited | 2 | 23.24 | 35.06 | 9.95% | 252.37 |
| Rallis India Ltd | 1 | 9.51 | 32.90 | 12.90% | 72.48 |
| PI Industries Ltd | 1 | 33.08 | 79.15 | 5.31% | 189.64 |
| Sumitomo Chemical India Ltd | 10 | 4.10 | 78.90 | 16.34% | 24.48 |
| Atul Ltd | 10 | 224.69 | 38.23 | 19.26% | 1,063.63 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 23rd June 2021 |
| Issue Closes on:. | 25th June 2021 |
| Issue Price | Rs.290 – 296 |
| Face Value | Rs.1 |
| Retail Category Allocation | 35% |
| Minimum Lot | 50 Shares |
| Minimum Investment | Rs.14,800 |
| Issue Constitutes | 23.46% |
| Issue Size | Rs.800 cr ($108 million) |
| Market Cap | Rs.3408 cr ($460 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 33,78,378 |
| Equity Shares Offered (OFS) | 2,36,48,648 |
| Total Equity Shares Offered (Fresh + OFS) | 2,70,27,026 |
| Equity Shares Prior to the Issue | 11,17,85,130 |
| Equity Shares after the issue | 11,51,63,508 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 30th July 2021 |
| Initiation of Refunds | on or Before 1st July 2021 |
| Credit of Equity Shares: | on or Before 2nd July 2021 |
| Listing Date: | on or Before 5th July 2021 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 05:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 55,17,241 | 0.00 | 2.31 | 42.95 |
| NII | 41,37,931 | 0.20 | 0.91 | 51.88 |
| Retail | 96,55,173 | 2.51 | 5.88 | 11.30 |
| Employee | ——- | —- | —– | —- |
| TOTAL | 1,93,10,345 | 1.29 | 3.79 | 29.04 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 12.07 | 24.52 | 34.54% | 34.94 |
| Check IPO Allotment Status: |
|---|
KfinTech Website: http://kfintech/IPO/Allotment_StatusBSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| India Pesticides Limited 35-A, Civil Lines Bareilly 243 001 Uttar Pradesh, India Tel: +91 0522 2653602 E-mail: investor@indiapesticideslimited.com Website: www.indiapesticideslimited.com |
| IPO Registrar Info: |
|---|
| KFin Technologies Private Limited Selenium Tower-B Plot 31 & 32, Gachibowli Financial District, Nanakramguda, Serilingampally Hyderabad 500 032 Telangana, India Tel: +91 40 6716 2222 E-mail: ipl.ipo@kfintech.com Website: www.kfintech.com |
