Jaipur-based Agrochemical Company Advance Agrolife files DRHP for IPO
The IPO, with a face value of Rs 10, is entirely a fresh issue of shares up to 19,285,720 with no offer-for-sale component. It includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion.
The proceeds from the fresh issue to the extent of Rs. 135 crores for funding working capital requirements and general corporate purposes.
The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional and retail individual bidders respectively.
Advance Agrolife led by Promoter, Om Prakash Choudhary and Kedar Choudhary, commenced its commercial operations in 2002 with small-scale production, initially focused on mixing micro-nutrient fertilizers. As on date, it manufactures Technical Grade and Formulation Grade agrochemicals products through its integrated Manufacturing Facilities.
The products designed by the company are used in the cultivation of major cereals, vegetables, and horticultural crops across both Agri-seasons (Kharif and Rabi) in India. It manufactures formulation-grade agrochemicals in various forms such as water dispersible granules (“WDG”), suspension concentrate (“SC”), emulsifiable concentrate (“EC”), capsule suspension, Wettable Powder (“WP”), etc. Since 2008, it has manufactured 1,88,920 MT of agrochemical products.
As on the date of the Draft Red Herring Prospectus, the company has obtained 404 generic registrations comprising of 376 Formulation Grade registration and 28 Technical Grade registration for its agrochemical’s products.
The Company's product portfolio includes insecticides, herbicides, fungicides, and plant growth regulators. It also manufactures other agrochemical products such as micro-nutrient fertilizers and biofertilizers. The products are primarily sold domestically through direct sales to corporate customers on a B-2-B basis, across the country, particularly in 19 states and 3 union territories. In addition to serving the domestic market, the products were also exported to 7 countries including UAE, Bangladesh, China (including Hong Kong), Turkey, Egypt, Kenya, and Nepal.
The Company's marquee corporate customers include DCM Shriram Limited, IFFCO MC Crop Science Private Limited, Indogulf Cropsciences Limited, Mankind Agritech Private Limited, HPM Chemicals and Fertilizers Limited, ULink AgriTech Private Limited, amongst other. In Fiscal 2024, out of the 1,194 corporate customers, and out of which 98 have been associated for more than 3 years.
The Company primarily operate through its three manufacturing facilities located in Jaipur, and it is well supported by robust infrastructure, including dedicated storage for raw materials and finished goods. As of September 30, 2024, the total installed capacity stood at 89,900 MTPA.
As of December 31, 2024, the company's work force includes 256 employees on our payroll and 676 contract workers.
Advance Agrolife Limited's revenue from operations increased by 14.60% from ₹397.81 crore in Fiscal 2023 to ₹455.90 crore in Fiscal 2024 majorly due to increase Domestic sales. Profit after tax grew by 66.34%, from ₹14.87 crore in Fiscal, 2023 to ₹24.73 crore in Fiscal, 2024.
For the six months ended September 30, 2024, revenue from operations stood at Rs.299.26 crore, and Profit after tax stood at Rs 21.44 crore.
Choice Capital Advisors Private Limited is the sole book-running lead manager and KFin Technologies Limited is the registrar of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.
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