India Pesticides Limited IPO to open on Wednesday, June 23, 2021 and close on Friday, June 25, 2021
Price Band of Rs. 290 – Rs. 296 per equity share of face value of Rs. 1 each (“Equity Shares”)
Bid/Offer Opening Date – Wednesday, June 23, 2021 and Bid/Offer Closing Date – Friday, June 25, 2021
Minimum Bid Lot is 50 Equity Shares and in multiples of 50 Equity Shares thereafter
The Floor Price is 290 times the face value of the Equity Shares and the Cap Price is 296 times the Face Value of the Equity Shares
Risks to Investors: • Average Cost of acquisition of Equity Shares held by the Selling Shareholders, Anand Swarup Agarwal is ₹ 0.03, Mahendra Swarup Agarwal is ₹ 0.01, Virendra Swarup Agarwal is ₹ 0.02, Asha Agarwal is ₹ 0.02, Nupur Goyal is ₹ 0.00 (negligible), Sugandha Swarup Arora is ₹ 0.01, Sneh Lata Agarwal is ₹ 0.02, Sudha Agarwal is ₹ 0.02, Shalini Pawan Agarwal is ₹ 0.02, Saurabh Swarup Agarwal is ₹ 0.02, Pramod Swarup Agarwal is ₹0.02, Vishal Swarup Agarwal is ₹ 0.06, Aparna Gupta is ₹ 0.00 (negligible), Vishwas Swarup Agarwal is ₹ 0.03, Sanju Agarwal is ₹ 0.94, Kajaree Swarup Agarwal is ₹ 0.29, Anurag Swarup Agarwal is ₹0.02, and Komal Swarup Agarwal is ₹0.29 per Equity Share, respectively, and the Offer Price at the upper end of the Price Band is at ₹ 296 per Equity Share.• The two Book Running Lead Managers associated with the Offer have handled 25 public issues in the past 3 years out of which 11 closed below the Offer price on listing date
Chennai, June 18, 2021: India Pesticides Limited (the “Company”), a R&D driven agro-chemical manufacturer of Technicals and one of the fastest growing agro-chemicals company in terms of volume of Technicals manufactured, is proposing to open its initial public offering of Equity Shares (the “Offer”) on Wednesday, June 23, 2021. The Offer will close on Friday, June 25, 2021. The price band for the Offer has been determined at Rs. 290 – Rs. 296 per Equity Share. The Company and the Promoter Selling Shareholder have, in consultation with the BRLMs, considered participation by Anchor Investors, which participation shall be one Working Day prior to the bid/offer opening Date, i.e. Tuesday, June 22, 2021. All Bidders (except Anchor Investors) are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process providing details of their respective bank account (including UPI ID for RIBs using UPI Mechanism), in which the corresponding Bid Amounts will be blocked by the SCSBs or the Sponsor Bank, as applicable. Anchor Investors are not permitted to participate in the Offer through the ASBA process.
The total Offer size is up to Rs. 800 crores with a Fresh Issue of Equity Shares, aggregating up to Rs. 100 crores and an Offer for Sale of Equity Shares aggregating up to Rs. 700 crores, by the Selling Shareholders. The Company intends to utilize the proceeds from the Fresh Issue to fund its working capital requirements and for general corporate purposes.
The Company is the sole Indian manufacturer of five Technicals and among the leading manufacturers globally for Captan, Folpet and Thiocarbamate Herbicide, in terms of production capacity (Source: F&S Reports*). Certain key fungicide Technicals the Company manufactures include: (i) Folpet, used to manufacture fungicides that control fungal growth at vineyards, cereals, crops and biocide in paints; and (ii) Cymoxanil, used to manufacture fungicides that control downy mildews of grapes, potatoes, vegetables and several other crops. Major herbicide Technicals the Company manufactures include, Thiocarbamate herbicides that have application in field crops, such as, wheat and rice, and are used globally.
The Company currently operates out to 2 manufacturing facilities out of the Lucknow and Hardoi in Uttar Pradesh having an aggregate capacity of 19,500 MT for Technicals and 6,500 MT for the Formulations vertical. It currently has registrations and licenses for 22 agro-chemical Technicals and 125 Formulations for sale in India and 27 agro chemical Technicals and 35 Formulations for exports purpose.
The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended, read with Regulation 31 of the SEBI ICDR Regulations. The Offer is being made in accordance with Regulation 6(1) of the SEBI ICDR Regulations, through the Book Building Process wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.
Axis Capital Limited and JM Financial Limited are the BRLMs to the Offer.
All capitalized terms used herein and not specifically defined shall have the same meaning as ascribed to them in the Red Herring Prospectus dated June 16, 2021 (“RHP”) filed with the Registrar of Companies, Uttar Pradesh at Kanpur (“RoC”).
India Pesticides Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its equity shares and has filed a the red herring prospectus (“RHP”) with the Registrar of Companies, Uttar Pradesh at Kanpur. The RHP is available on the website of the SEBI at www.sebi.gov.in as well as on the websites of the book running lead managers, Axis Capital Limited and JM Financial Limited at https://www.axiscapital.co.in and https://www.jmfl.com, respectively, the website of the National Stock Exchange of India Limited at www.nseindia.com and the website of the BSE Limited at www.bseindia.com, respectively. Investors should note that investment in equity shares involves a high degree of risk. For details, potential investors should refer to the RHP which has been filed with the Registrar of Companies, Uttar Pradesh at Kanpur including the section titled “Risk Factors”. Potential investors should not rely on the DRHP filed with SEBI in making any investment decision. The Equity Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any other applicable law of the United States and, unless so registered, may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. Accordingly, the Equity Shares are being offered and sold (a) in the United States only to persons reasonably believed to be “qualified institutional buyers” (as defined in Rule 144Aunder the U.S. Securities Act and referred to in the Draft Red Herring Prospectus as “U.S. QIBs”) in transactions exempt from the registration requirements of the U.S. Securities Act and (b) outside the United States in compliance with Regulation S and the applicable laws of the jurisdiction where those offers and sales are made. There will be no public offering in the United States.