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India Pesticides IPO Review 2021 with today's GMP

The Indian Chemicals market was valued at Rs $ 200 billion in 2019 with basic chemicals accounting for a majority share of 56%. Post the opening of the lockdown, the chemical industry is amongst the first to recover, given the increasing needs for its inputs towards essential supplies. Such as pharmaceutical, personal health and hygiene, fertilizers and other agricultural needs. 

India pesticides limited logo
Source: ipowatch.in


India Pesticides Limited (IPL) IPO opens on 23rd June and closed on 25th June, 2021. The company is planning to collect Rs 800 crores which comprises fresh issue of equity shares worth of Rs 100 crores and offer for sale (OFS) of Rs 700 crores.

In this article we cover all the important information related to the company and IPO, also we have covered the Grey market premium (GMP) for the shares of last one week. 


🖥 Table of Contents:

India Pesticides Limited (IPL) IPO Review 2021-

1) About Company:

2) Fundamentals of the Company:

3) Strengths:

4) Competition:

5) Important Dates and Details:

6) Objective of Issue:

7) Grey Market Premium (GMP):


About Company:

India Pesticides Limited (IPL) was incorporated in the 1984. The corporate is the fastest growing agro- chemical company in India in terms of volume as per the data of FY2020. 

The company is the sole Indian manufacturer and among top 5 manufacturers globally, for several technicals such as Folpet, Thiocarbamate Herbicide etc. It's technicals are exported to more than 20 foriegn countries which includes Asia, Africa, Australia and European countries. The major part of company's revenue is came from technical exports in FY2020. 

The company offers a wide range of quality products and value added services which makes it a 'Strategic Supplier'. The company focus on R&D activities. The company have two well- equipped in house laboratories registered with DSIR. 


Fundamentals of the Company:

You can get an idea of the company's financial performance from the table given below:

Particulars31-Mar-
2021
31-Mar-
2020
31-Mar-
2019
Total Assest5,170.803,657.023,172.37
Total Revenue6,553.774,897.273,460.42
Profit After
Tax
1,345.32707.99439.21


As we can see that in the above table the company's assets are increasing yoy basis which is the sign of company's management is working on expansion of business. The revenue of the company is also increasing yoy basis. 
 
In this year while due to Covid 19 other sectors gone in losses the company have shown a tremendous growth in profit. Also, the agriculture sector have contributed the large amount in countries GDP growth in FY2020. 

The P/E ratio of the company is 24.52 which lower than its rival companies. The EPS of the company is 6.35. The RONW of the company is 27.57.

Also Read, 

Strenths:


  1.  The company is among the top 5 manufacturing companies of Folpet, Thiocarbamate Herbicide etc. 
  2. The company offers wide range of products and value added services. 
  3. The company have its presence in both domestic market and in global market. 
  4. The company have recorded a great financial growth consistently. 
  5. The company have well qualified and experienced R&D team. 
  6. The company have experienced board which can tackle the any kind of tough situations.


Competition:


The company have to face a peer competition from other existing companies such as Dhanuka Agritech, Bharat Rasayan, UPL LTD, Rallis India, PI Industries, Sumitomo Chemical etc.


Important Dates and Details:

The important Dates and details related to the ipo is given below:

Opening Date23 June, 2021
Closing Date25 June, 2021
Issue TypeBook Built issue
Face ValueRs 1
IPO PriceRs 290- Rs 296
Market lot50 shares
Listing AtNSE, BSE
Issue Size[.] Eq shares of Rs 1
(Aggregating up to Rs 800 Crores)
Fresh Issue[.] Eq shares of Rs 1
(Aggregating up to Rs 100 Crores)
Offer for Sale[.] Eq shares of Rs 1
(Aggregating up to Rs 700 Crores)


Tentative Timetable
:

Opening Date23 June, 2021
Closing Date25 June, 2021
Basis of Allotment30 June, 2021
Initiation of Refund1 July, 2021
Credit of shares in
Demat account
2 July, 2021
Listing on 5 July, 2021

Objective of Issue:

The fund which company is raising is utilized for following purpose:

  • To meet the working capital requirements of the company. 
  • For General corporate purpose.


Grey market premium:


The GMP of the company share gives an idea about the listing price of the shares whether it list on discount or on premium. The GMP Of India Pesticides LTD IPO is in fluctuating manner. The GMP of the company for past one week are:

Gmp of India pesticides limited
Source : ipowatch.in


The expected return from this IPO is 30%. You can check today's grey market premium on ipowatch.in

Closing Thought:


As we have seen the grey market premium of the company is Rs 90 on 19th June and in last six days it is zero. In next four days it may be rise. You should wait till the second day of ipo opening if the gmp rises or consolidated at the same price then you can apply for the listing gain. At current price you can get 25% return.

We hope you like this article. If you have any query write in comment box we will reply you as soon as possible. Also, write in which IPO you are going to apply. 

Happy Investing😇! 


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