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Indian pesticides limited will be open for subscription till 25^th June 2021. Overall IPO size is ₹800 crores out of which ₹240 crores was raised from anchor investors on 22th June 2021 at price of ₹296 which is higher end of the price band. Domestic investors include SBI mutual fund, Tata mutual fund, Nippon India mutual fund etc. and on foreign investor side investors like Abu Dhabi Investment Authority, Tara Emerging Asia Liquid Fund and BNP Paribas have been allotted shares of IPL. 

We suggest retail investors to apply for the IPL IPO; as per the different market sources, investors can get very good listing gains.

Looking at the valuation, Based on FY-2021 PE of 24.5x and EV/EBITDA of 18.2x at the upper band of the IPO price, which is slightly better than the peers companies. Similarly company has one of the best ROE & ROCE of 34% and 45% respectively. Company has a healthy balance sheet with negative Net Debt to Equity. We expect that the upcoming expansion plan and higher capacity utilisation will be the growth drivers for the company in future. We are assigning a “Subscribe” recommendation to the issue.

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