India Pesticides Limited IPO – REASONABLE listing gains expected, says Anil Singhvi; Market Guru gives these POSITIVES and NEGATIVES
India Pesticides Limited IPO – Initial Public Offering (IPO) of agrochemical manufacturing company India Pesticides Limited opens today. Zee Business Managing Editor Anil Singhvi has this to say about the public issue
India Pesticides Limited IPO – Initial Public Offering (IPO) of agrochemical manufacturing company India Pesticides Limited opens today. Zee Business Managing Editor Anil Singhvi has this to say about the public issue.
He said that there was no doubt that the company was good. He said that investors willing to put money in this issue can do that for reasonable listing gains. It is unlikely that listing will get doubled or there would be massive gains.
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He said that one can expect a listing gain between 20 and 30 percent, referring it as reasonable gains. Investors can subscribe the shares with a long term view as well, the Market Guru further said. He said that the promoters were quite experienced. Another important thing that goes for the company is that it is growth oriented.
The company has managed to doble its revenues in two financial years between FY19 and FY21, he further said. The profitability has doubled and the margins have improved considerably, the Managing Editor said.
The EPS has also grown from Rs 3 to Rs 12. The third important reason is that it has done a further capex of Rs 65 cr this year and remains cash positive. This is not very common in small size companies, Singhvi remarked.
The company management has also told the channel that it is debt free now. The valuations are very attractive in comparison to its industry peer, Singhvi said. It is available at a PE multiple of 25.
Investors must consider this too:
- It is into agrochemical space which is very competitive. There are not enough entry barriers and many companies are now in this business.
- Small size company
- At 35 per cent, large part of its raw materials come from China.
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India Pesticides के IPO में क्या करें?
कंपनी में क्या पॉजिटिव, क्या निगेटिव?
— Zee Business (@ZeeBusiness) June 23, 2021
India Pesticides Limited IPO details:
- Symbol - IPL
- Issue Period – 23 June 2021 to 25 June 2021
- Post issue Modification Period - 28 June 2021 (10 am to 11am.)
- Cut-off time for UPI Mandate Confirmation – 28 June 2021 (up to 12pm)
- Issue Size - Initial Public offer of equity shares comprising a fresh issue of Rs 100 cr and an Offer for Sale of Rs 700 cr.
- Issue Type – 100 per cent Book Building
- Price Range – Rs 290 to Rs 296
- Face Value – Re 1
- Tick Size - Re 1
- Bid Lot - 50 equity shares and in multiples thereof
- Minimum Order Quantity - 50 equity shares
- Maximum Subscription Amount for Retail Investor - Rs 200,000
- IPO Market Timings – 10 am to 5 pm
The book running lead managers are Axis Capital Limited and JM Financial Limited while the sponsor Bank is ICICI Bank Limited. The name of the Registrar is Kfin Technologies Private Limited.
As per SEBI circular all Syndicate Members, registered stockbrokers/DPs/RTAs shall use Unified Payments Interface (UPI) as a mandatory payment mechanism for bid amounting to Rs 2 Lakhs and below for applications in public issues by retail individual investors and Share Holders.
Since commencing its operations in 1984, India Pesticides has diversified into manufacturing herbicide and fungicide technicals and active pharmaceutical ingredients (APIs), the company said on its website.
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