IPO watch: India Pesticides, KIMS get SEBI nod to launch Initial Public Offerings

Agrochemicals manufacturer, India Pesticides is planning to raise Rs 800 crore from the market through its issue.

The initial public offerings (IPO) of agrochemical manufacturer, India Pesticides and that of healthcare group, Krishna Institute Of Medical Sciences (KIMS) could soon hit Dalal Street. Both India Pesticides and KIMS received the green signal from capital market regulator Securities and Exchange Board of India’s (SEBI) for their public issues in April, after having filed their draft papers in February. So far this year, a total of 16 companies have successfully completed their initial share sales and made their stock market debuts. The IPO pipeline remains robust with even the likes of Zomato initiating the process for their share sale.

Agrochemicals manufacturer, India Pesticides is planning to raise Rs 800 crore from the market through its issue. According to the draft red herring prospectus (DRHP) filed by the company, its IPO will consist of a fresh issue worth Rs 100 crore and the remaining Rs 700 crore would be an offer for sale (OFS) by existing shareholders. The promoter of India Pesticides, Anand Swarup Agarwal plans to trim his stake in the company by selling shares worth Rs 281.4 crore, while the remaining portion of the OFS will consist of other investors. The company could go for a pre-IPO placement worth Rs 75 crore, which would be reduced from the fresh issue.

“India Pesticides Limited is an R&D driven agrochemical manufacturer of Technicals with a growing Formulations business,” Axis Securities said in a note. The brokerage highlighted that India Pesticides the sole Indian manufacturer and among the top 5 producers globally for several Technicals, such as Folpet and Thiocarbamate Herbicide. The company plans to utilise the net proceeds for funding the working capital requirement of the company.

SEBI has also given its observations to the Krishna Institute of Medical Sciences (KIMS) — a large corporate healthcare group operating in Andhra Pradesh and Telangana. The company, according to its DRHP, plans a fresh issue worth Rs 200 crore and an offer for sale by promoters and other investors of upto 21,340,931 equity shares. The promoter of KIMS, Bhaskara Rao Bollineni plans to sell 7.75 lakh equity shares; Rajyasri Bollineni plans to offload 11.63 lakh equity shares, and BRMH will sell 3.87 lakh shares. General Atlantic, an investor in the company will sell 1.39 crore equity shares, trimming its 41% stake in the company.

KIMS provides multi-disciplinary integrated healthcare services in Tier 1 and Tier 2 cities, operating 9 multi-speciality hospitals under the KIMS Hospitals brand, with a bed capacity of 3,064 beds including over 2,500 operational beds, at the end of last year.