Indian agrochemical company Advance Agrolife files IPO draft papers with SEBI

Agrochemical firm Advance Agrolife Ltd has filed preliminary papers with Sebi seeking its approval to raise funds through an initial public offering (IPO).

The Jaipur-based company's IPO is entirely a fresh issue of 1.92 crore shares with no offer-for-sale (OFS) component, according to the draft red herring prospectus (DRHP).

The issue includes a reservation for subscription by eligible employees and a discount is being offered to such employees.

Proceeds from the fresh issue to the tune of Rs 135 crore will be utilised for funding working capital requirements and a portion will be used for general corporate purposes, as per the draft papers filed on March 31.

Advance Agrolife is engaged in manufacturing a wide range of agrochemical products that support the entire lifecycle of crops. 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 company primarily operates through its three manufacturing facilities located in Jaipur. As of September 2024, the total installed capacity stood at 89,900 MTPA.

Advance Agrolife's corporate customers include DCM Shriram, IFFCO MC Crop Science, Indogulf Cropsciences and Mankind Agritech.

In addition to serving the domestic market, the products were also exported to 7 countries including the UAE, Bangladesh, China (including Hong Kong), Turkey, Egypt, Kenya, and Nepal.

Advance Agrolife's revenue from operations increased by 14.60 per cent from Rs 398 crore in fiscal 2023 to Rs 456 crore in fiscal 2024. Profit after tax grew by 66 per cent from Rs 15 crore to Rs 25 crore.

Choice Capital Advisors is the sole book-running lead manager of the public issue. The equity shares are proposed to be listed on the NSE and BSE.