The initial public offering of India Pesticides Ltd. garnered interest from retail, institutional and non-institutional investors on the final day of subscription. The three-day IPO will see the chemical firm selling shares at Rs290-296 apiece. The maiden offer comprises a fresh issue of up to Rs100 crore and an offer for sale worth up to Rs700 crore, according to its herring prospectus.
The portion set aside for retail investors has been subscribed 7.40 times while the portion for non-institutional investors has been subscribed 1.90, according to the subscription data available on the exchanges till 11:30 am. Qualified institutional investors’ (QIPs) portion received 2.38 times subscription.
The fungicide and herbicide maker was subscribed 5.78 times as of 12:45 pm on June 25, according to exchange data.
- Institutional subscription- 3:15 times
- Non-institutional investors subscription- 3:05 times
- Retail subscription: 8.45 times.
- Employees: 0:00 times.
The price band for the offer has been fixed at Rs 290-296 per equity share. The issue closes on Friday. Proceeds from the fresh issue would be used towards funding the working capital requirements and general corporate purposes.
“With company’s focus on increasing its product portfolio, expanding geographical presence, onboarding more customer for newer molecules apart from molecules which are under implementation and already lined up as some of them will be going on a stream sometimes in September – October, prospects of the company look strong,” said Hem Securities. The brokerage recommends ‘subscribe’ on the issue both for listing gain and long-term purposes.