Advance Agrolife Limited, a prominent player in the agrochemical sector, is taking a significant step forward by submitting its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) as it gears up for an Initial Public Offering (IPO). This strategic move, aimed at raising capital, is set to involve the issuance of 19,285,720 shares at a face value of ₹10 each, with all proceeds directed towards meeting working capital needs and supporting general corporate objectives.
IPO Details and Structure
The upcoming IPO will be executed via the book-building process. Here’s how the allocation will look:
- Qualified Institutional Buyers: Up to 50% of the net offer
- Non-Institutional Bidders: At least 15% of the net offer
- Retail Individual Bidders: A minimum of 35% of the net offer
This fresh share issue is expected to generate around ₹135 crore for the company, as outlined in their DRHP.
Company Background and Operations
Founded in 2002, Advance Agrolife Limited began its journey with a focus on micronutrient fertilizers, gradually evolving into a full-fledged agrochemical manufacturer. The company’s state-of-the-art facilities enable it to produce both Technical Grade and Formulation Grade agrochemical products.
Their extensive product lineup includes:
- Insecticides
- Herbicides
- Fungicides
- Plant Growth Regulators
- Micronutrient Fertilizers
- Biofertilizers
To date, the company has successfully produced 188,920 MT of agrochemical products since 2008.
Market Reach and Export Operations
Advance Agrolife primarily markets its products through direct sales to corporate clients across 19 states and 3 union territories in India. Additionally, the firm has expanded its reach internationally, exporting to seven countries such as the UAE, Bangladesh, Turkey, and Nepal.
Clientele and Manufacturing Capacity
The company boasts a diverse range of corporate clients, including:
- DCM Shriram Limited
- IFFCO MC Crop Science Private Limited
- Indogulf Cropsciences Limited
- Mankind Agritech Private Limited
- HPM Chemicals and Fertilizers Limited
As of September 30, 2024, Advance Agrolife has a robust client base of 1,194 corporate customers, with 98 maintaining relationships for over three years. The firm operates three manufacturing facilities in Jaipur, with a significant installed capacity of 89,900 MTPA, ensuring they meet the demands of their growing market effectively.
Looking Ahead
The forthcoming IPO represents a pivotal moment for Advance Agrolife Limited as it seeks to enhance its operational capabilities and expand its market presence. With a solid foundation and a wide array of products, the company is well-positioned to capitalize on the growing agrochemical demand in India and beyond.
