Andhra based agri-input company’s IPO of Rs. 2,100 million and an Offer for Sale of 12 million equity shares
Rs. 3 discount offered to retail and eligible employee category
by Suman Gupta
June, 2019. Mumbai. Andhra Pradesh based K.P.R. Agrochem Limited’s Initial Public Offering (IPO) opens on Friday, 28 June 2019. The IPO will consist of a fresh issue aggregating upto Rs. 2,100 million and an Offer for Sale of 12 million equity shares in a price band of Rs. 59 – Rs. 61 for equity shares of face value Rs. 10 each. The QIB category will be upto 25%, non-institutional investors category will be not less than 35% and the retail portion will be not less than 40%. Further, the IPO consists of a reservation of upto 430,000 equity shares for eligible employees. Equity Shares in the IPO are offered at a discount of Rs. 3 per equity share to the retail and eligible employee category. The Book Running Lead Manager to the Issue is PL Capital Markets Private Limited, part of Prabhudas Lilladher group. The earliest closing date of the IPO will be July 02, 2019. The equity shares are proposed to be listed on BSE and NSE.
K.P.R. Agrochem Limited is an agri-input Company focused on manufacturing, distribution and retailing of a wide range of crop yield enhancing and protection products. K.P.R. Agrochem Limited’s range of product encompasses products across the agri-value chain viz., from seeds to crop nutrients products to crop protection products and also veterinary feed supplements. Further, in order to secure the supply of sulphuric acid, one of the key ingredients for Company’s various products, the Company also ventured into manufacturing of sulphuric acid. Apart from producing sulphuric acid, K.P.R. Agrochem Limited also produces other sulphuric acid-based chemicals like LABSA and oleum that have wider applications across industries like agrochemicals, veterinary feed supplements, pharmaceuticals, synthetic detergents etc.
Majority of K.P.R. Agrochem Limited’s sales is from branded products like “FAST”, “MOTOX – 10G”, “SAMRAT ATRAZINE 50% WP” and “MEGA IMIDA” for crop protection; “AJAY (14-35-14)” and “AJAY (20-20-0)” for NPK mixture crop nutrient products; “ANNADATA SINGLE SUPER PHOSPHATE” for single super phosphate; “ABHAYA CAL MIX” for di-calcium phosphate and “APURVA SEEDS” for seeds. To ensure a timely supply and availability of the products as well as achieve the last mile connectivity with the farmers, K.P.R. Agrochem Limited has set-up Company operated depots at 11 locations across India that are established based on the agricultural belts and / or having ease of connectivity with their dealer network. The Company has also appointed C & F Agents in 4 locations. The products are distributed from its depots / manufacturing location-based warehouses/ C & F Agents to a network of approximately 8,000 dealers spread across various states in India. Further, the Company has also set-up a chain of Company operated 126 retail outlets known as Kisan Seva Kendras in the East and West Godavari, Vizianagaram, Srikakulam, Visakhapatnam and Krishna districts of Andhra Pradesh; Warangal district of Telangana; and Koppal, Raichur, Bellary and Gadag districts of Karnataka where the primary manufacturing operations are conducted as a channel of direct sales to its end customers.
For the FY2017-18, K.P.R. Agrochem Limited has achieved a Total Income of Rs. 6,008.22 million and a Net Profit of Rs. 296.52 million on restated, audited and consolidated basis. For the 9-month period ended on December 31, 2018 K.P.R. Agrochem Limited has achieved a Total Income of Rs. 4,832.76 million and a Net Profit of Rs. 275.90 million on restated, audited and consolidated basis.
With a business strategy of enhancing product offering, geographical expansion and increasing its market penetration, K.P.R. Agrochem Limited is well poised to leverage opportunities.
Disclaimer: K. P. R. Agrochem Limited is proposing, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to make a public Issue of its Equity Shares and has filed the Red Herring Prospectus with Registrar of Companies Andhra Pradesh at Vijayawada. The Red Herring Prospectus shall be available on the website of the SEBI at www.sebi.gov.in, the website of the BRLM to the Issue at www.plindia.com and websites of BSE and NSE i.e. www.bseindia.com and www.nseindia.com, respectively. Bidders should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the Red Herring Prospectus, including, the section titled “Risk Factors” beginning on page 18 of the Red Herring Prospectus.
The Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or any state securities laws in the United States, and unless so registered, may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any applicable U.S. state securities laws. The Equity Shares are being offered and sold outside the United States in offshore transactions in reliance on Regulation S under the Securities Act and the applicable laws of the jurisdictions where such offers and sales are made. There will be no public offering in the United States.
