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India Pesticides gets SEBI's go-ahead to launch IPO

04 May 2021 Evaluate

Agrochemical technicals firm India Pesticides has received capital markets regulator SEBI's go-ahead to float initial share-sales. The company had filed its preliminary papers with the Securities and Exchange Board of India (SEBI) in February. SEBI'S observation is necessary for any company to launch public issues like initial public offer (IPO), follow-on public offer (FPO) and rights issue.

According to draft red herring prospectus, India Pesticides' Rs 800-crore IPO comprises fresh issuance of shares amounting to Rs 100 crore and an offer of sale of Rs 700 crore by promoter and technocrat Anand Swarup Agarwal and other shareholders. The Uttar Pradesh-based company may decide to undertake a pre-IPO placement of Rs 75 crore, subject to consultation of the merchant bankers. The proceeds of the fresh issue would be used towards funding the working capital requirements and general corporate purposes.

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 (APIs). It is the only Indian manufacturer and among the top-five companies globally for several technical products such as folpet and cynomoxanil, used to make fungicides that control fungal growth across a variety of crops. The equity shares of the company are proposed to be listed on the BSE and the NSE.

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