1/ IPO Details
Date of Offer: 23rd June - 25th June
Price Band: INR 290-296
Min. Order Qty: 50 Shares
Fresh Issue: INR 100 Cr
Offer for Sale: INR 700 Cr
Date of Offer: 23rd June - 25th June
Price Band: INR 290-296
Min. Order Qty: 50 Shares
Fresh Issue: INR 100 Cr
Offer for Sale: INR 700 Cr
2/ Company Details
One of the leading R&D focused agrochemical manufacturers in India
2 Business verticals: Technicals & Formulations
Sole Indian manufacturer & Top 5 globally in several technicals
Technicals include Fungicides, Herbicides & APIs
One of the leading R&D focused agrochemical manufacturers in India
2 Business verticals: Technicals & Formulations
Sole Indian manufacturer & Top 5 globally in several technicals
Technicals include Fungicides, Herbicides & APIs
3/ Operational Highlights
2 Manufacturing facilities in Lucknow and Hardoi spread across 25 acres
Installed Capacity: Agrochemical Technicals 19,500 MT | Formulations 6,500 MT
Exports contributed 56.7% Revenue in FY21
2 Manufacturing facilities in Lucknow and Hardoi spread across 25 acres
Installed Capacity: Agrochemical Technicals 19,500 MT | Formulations 6,500 MT
Exports contributed 56.7% Revenue in FY21
4/ Financials
Consistent track record of financial performance
Total Revenue increased 89.43% from 2018 to 2020
Debt equity ratio remained consistently low with 0.03 on Sept 30,2020
ROCE 28.78% & ROE 43.93% on Sept 30, 2020
Consistent track record of financial performance
Total Revenue increased 89.43% from 2018 to 2020
Debt equity ratio remained consistently low with 0.03 on Sept 30,2020
ROCE 28.78% & ROE 43.93% on Sept 30, 2020
5/ Sector Outlook
Global agrochemical sector to grow from $62.5B to USD 86B in 2024 (CAGR 6.6%)
Growth Drivers:
India has lowest per capita consumption od crop protection
increase agriculture productivity
Compensating for reducing farm labor
API market expected CAGR 10% to FY24
Global agrochemical sector to grow from $62.5B to USD 86B in 2024 (CAGR 6.6%)
Growth Drivers:
India has lowest per capita consumption od crop protection
increase agriculture productivity
Compensating for reducing farm labor
API market expected CAGR 10% to FY24
6/ Peer Comparison
Indian agrochemicals is a fragmented industry
Domestic competition from companies like UPL, PI Industries, Jubilant Life Sciences
International competition from China Corporation, Sumitomo Chemicals, BASF
Indian agrochemicals is a fragmented industry
Domestic competition from companies like UPL, PI Industries, Jubilant Life Sciences
International competition from China Corporation, Sumitomo Chemicals, BASF
7/ Promoter & Major Shareholder Details
Anand Swarup Agarwal is the promoter of the company and holds 40.07% of the company. However if we include the promoter group the total shareholding shoots up to 82.68%.
Anand Swarup Agarwal is the promoter of the company and holds 40.07% of the company. However if we include the promoter group the total shareholding shoots up to 82.68%.
8/ Strengths
Strong R&D and product development capabilities
Diversified product portfolio with niche and specialized products
Strong sourcing capabilities and extensive distribution network
Global market presence
Strong R&D and product development capabilities
Diversified product portfolio with niche and specialized products
Strong sourcing capabilities and extensive distribution network
Global market presence
9/ Risk Factors
Top 10 customers comprise 56.83% of Revenue (FY21)
Bio-pesticides, an alternative, is gaining popularity
Working capital intensive business
Operations concentrated in one state (UP)
Agro-chemical industry has severe competition
Multiple approvals & licenses
Top 10 customers comprise 56.83% of Revenue (FY21)
Bio-pesticides, an alternative, is gaining popularity
Working capital intensive business
Operations concentrated in one state (UP)
Agro-chemical industry has severe competition
Multiple approvals & licenses
10/Future Outlook
Supply chain interruptions with China on account of the COVID-19 crisis boosting demand
Decreasing farm labor will necessitate increasing efficiency
Permissions taken to expand Sandila facility to 30000MT
Focus on differentiation and R&D
Supply chain interruptions with China on account of the COVID-19 crisis boosting demand
Decreasing farm labor will necessitate increasing efficiency
Permissions taken to expand Sandila facility to 30000MT
Focus on differentiation and R&D
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