• India Pesticides Limited (IPL) commenced operations in 1984 in Bareilly, Uttar Pradesh
• IPL operates two manufacturing facilities located at Dewa Road, Lucknow and Sandila, Hardoi in Uttar Pradesh, India. The total installed capacity is 19,500MT for agrochemical Technicals and 6,500MT for Formulations
• Since inception, the company has diversified into the manufacturing of herbicide and fungicide Technicals and APIs (active pharmaceutical ingredients). It also manufactures herbicide, insecticide and fungicide Formulations
• IPL is a research and development-driven agrochemical manufacturer of Technicals with a growing Formulations business

Technicals business (79% of fiscal 2021 revenues)

• The company is the fastest-growing agrochemicals company in terms of volume of Technicals manufactured. These generic Technicals find their use in the manufacture of fungicides, herbicides and APIs
• Sole manufacturer of five Technicals and leading manufacturers globally of Captan, Folpet and Thiocarbamate herbicide
• 57% of revenue from exports to over 25 countries, including Australia, North and South America, Europe, Asia and Africa

Formulations business (21% of fiscal 2021 revenues)

• The company sells formulations of insecticides, fungicide and herbicides, growth regulators and Acaricides, which are ready-to-use products
• Primarily the products are sold domestically. The customer base includes crop protection and manufacturing companies like Syngenta Asia, UPL Limited, Ascenza Agro, Conquest Crop Protection, Sharda Cropchem and Stotras Pty.

India Pesticides Limited IPO opens for subscription between June 23-25, 2021.

Presence in the growing agrochemicals industry, strong R&D and product development capabilities and diversified product portfolio in niche and specialized products are favourable.

Above all, steadily improving financials and appealing valuation makes the offer an attractive investment option.

About the promoters

Anand Swarup Agarwal leads India Pesticides Limited as Chairman and Non-Executive Director. He has over 35 years of experience in the agrochemical industry.

Financial Profile

Below is the condensed financial information of India Pesticides.

• There are several industry group peers, and the average P/E is 47x

Comparison with other industry peers

Offer proceeds

 Utilization of proceeds:

• Funding the working capital requirements
• General corporate expenses

IPO Factsheet

The information provided in the red herring prospectus filed by the company with the Securities and Exchange Board of India (www.sebi.gov.in) is the basis for this note. However, I recommend that the reader validate the data before making any financial decision. Also, investment in an initial public offering (IPO) is subject to market risks. It should be evaluated, keeping your risk profile and investment objective in mind. The author will not be responsible for any financial loss or otherwise resulting from any action taken based on the above.

Here is the LINK to company’s red herring prospectus filed with ROC.

About the author

The author is a senior finance professional with over fifteen years of work experience in corporate finance. He has an affinity for matters relating to personal finance and investment management. Through his writing, the author wants to share his knowledge and understanding of the subject.

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