India Pesticides

IPO Size

`800 Cr

Price Band

`290-296 Per Share

Minimum Lot Size

50 Share

Face Value

`1 Per Share

Employee Discount


Retail Allocation


Issue Open Date

23 June, 21

Issue Close Date

25 June, 21

Listing Date

05 July, 21

About the Company:

Incorporated in 1984, India Pesticides Limited (IPL) is one of the leading agrochemicals manufacturers in India. The company operates in two business verticals; 1 Technicals and 2. Formulations. The company manufactures herbicide, fungicide Technicals, and Active Pharmaceuticals Ingredients (APIs). India Pesticides is the sole Indian manufacturer of several Technicals i.e. Folpet, Thiocarbamate, and Herbicide. The agri-chemical producer is a R&D driven manufacturer of Technicals with a growing Formulations business. The company is utilizing 75% of its total manufacturing capacity and has recorded 37.17% year-onyear growth in Technicals manufacturing (by volume) last year. The company has obtained registrations from the CIBRC for 22 agro-chemical Technicals and 125 Formulations for sale in India and 27 agro-chemical Technicals and 35 Formulations for export while we have a license to manufacture from the Department of Agriculture, Uttar Pradesh for 49 agro-chemical Technicals and 158 Formulations.


Outstanding Litigation:

S.No. 1 - Company 2 - Directors 3 - Promoters
Entity Name By the Company Against the Company By the Sponser Group Against the Sponsor Group By the Sponser Against the Sponser
Criminal cases 50 - - 2 - 6
Material civil cases - 8 - - - -
Taxation matters - 1 - - - -
Regulatory Procedings - 5 - - - -
Amt. (In Million Rs.) 22.43 0.90 - Non-Quantifiable - Non-Quantifiable


Financial Statements:

Income Statement (In Millions) FY21 FY20 FY19
Gross Operating Income 6553.77 4897.27 3460.42
Cost of Employee & Inventory 3331.55 2694.99 2005.41
Other Expenses 1327.05 1165.72 748.67
EBITDA 1895.17 1036.56 706.34
Depreciation 61.35 50.69 39.58
Interest  34.33 52.18 55.76
Profit Before Tax 1799.49 933.69 611.00
 Tax 454.17 225.7 171.79
Profit After Tax 1345.32 707.99 439.21


As per CA Ajay Chouhan, SEBI Registered Research Analyst, recommendation is to ‘Subscribe’ for ‘Long Term’ and ‘Listing Gains’. India Pesticides is generating 56.7% of their revenues from exports which shows its strong presence in the global markets. The company holds a long-term relationship of over 10 years and some of their key customers include crop protection majors, such as, Syngenta Asia Pacific Pte. Ltd. and UPL Limited. On financials front, he company is growing its revenues at a at an annual growth of 38%. EBITD margins of the company stand at 28.9% much higher than the listed peers. Company might be capitalizing on equity as they a small amount Rs. 22.5 crores of debt on their balance sheet. Debt-Equity ratio of the company is 0.02x, which won’t have any effect on the credit worthiness of the company. The company will utilize the net proceeds for working capital requirements as the cash flows of the firm are not lucrative. Considering the upper price band at Rs. 296 and FY20 Earning Per Share (EPS) of 12.07, the company is demanding a P/E multiple of 24.52x, much lower than the Industry P/E of 59.22.

Promoter of the Company

The promoter of the company is Anand Swarup Agarwal and the ASA Family Trust.

Peer Comparison

The company will face tough competition from PI Industries, Sumitomo Chemicals, Dhanuka Agritech, Coromandel International.

Objectives of the Issue

Offer for Sale

The object of the Offer for Sale is to allow the shareholders to sell an aggregate of up to 2,36,48,648 equity Shares held by them. The company will not receive any proceeds from the Offer for Sale. Offer for Sale Size is of 23.6 million equity shares aggregating up to ₹700 Cr (at an upper price band of Rs. 296).

Fresh Issue

The company has planned to raise fresh capital comprising an aggregate of 33,78,378 equity shares having Face Value ₹1 aggregating up to Rs. 100 Cr at the upper price band of Rs. 296. The net proceeds will be utilized for working capital requirements amounting at Rs. 80 crores while the rest will be utilized for general corporate purpose.

Download the App

Get best experience

Download Now