India Pesticides shares list at 21% premium to IPO price; bullish market momentum helps strong debut

India Pesticides IPO was a mixture of a suggestion on the market (OFS) value Rs 700 crore and a recent problem of fairness shares value Rs 100 crore.
(Picture: REUTERS)

India Pesticides Restricted made a stellar debut on the inventory exchanges at the moment, as home markets surged increased amid bullish market momentum. Shares of the agrochemical agency listed at Rs 360 per share, up 21.62% or Rs 64 from the problem worth of Rs 296 per share. India Pesticides Restricted (IPL) is a research-driven agrochemical producer of Technicals with a rising Formulations enterprise. It is among the fastest-growing agrochemicals firms by way of quantity of Technicals manufactured. The corporate had a market capitalization of Rs 4,100 crore as shares started buying and selling for the primary time. 

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The preliminary public providing (IPO) of India Pesticides was subscribed 29 occasions general final month. Retail buyers bid for 11.3 occasions the portion reserved for them whereas non-institutional buyers (NII)bid for 51 occasions the reserved quota. Certified institutional consumers (QIB) bid for the IPO 42 occasions. With all three parts oversubscribed, the demand for the general public problem was excessive. Buyers had been eligible to bid for shares in multiples of fifty fairness shares of face worth Re 1 per share. On the higher finish of the worth band, this translated to a minimal funding of Rs 14,800.

India Pesticides IPO was a mixture of a suggestion on the market (OFS) value Rs 700 crore and a recent problem of fairness shares value Rs 100 crore. Submit problem the promoter shareholding within the firm will drop to 59.7% from 82.7%. The general public shareholding will improve to 40.3% from 17.3% pre-IPO, in accordance with HDFC Securities. 

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“We like IPL given its presence within the fast-growing agrochemical area, diversified product portfolio and strong financials,” home brokerage and analysis agency Motilal Oswal mentioned in an IPO observe. They added that robust R&D, long run relations with MNCs, price competitiveness and in depth distribution community are a number of the different key positives for India Pesticides. Motilal Oswal discovered the IPO to be “fairly valued” at 25.3x FY21 P/E on a publish problem foundation, when in comparison with friends and had a “subscribe” score on the IPO. India Pesticides will be a part of friends reminiscent of UPL, PI Industries, Sumitomo Chemical compounds, Rallis, and Dhanuka Agritech on the inventory exchanges.