Advance Agrolife files DRHP for IPO with SEBI, seeks ₹135 crore through fresh issue

Advance Agrolife Limited, an agrochemical company engaged in manufacturing a wide range of agrochemical products that support the entire lifecycle of crops, has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through Initial Public Offering (IPO).

The IPO, with a face value of ₹10, is entirely a fresh issue of shares up to 19,285,720 with no offer-for-sale component. The proceeds from the fresh issue to the extent of ₹135 crore for funding working capital requirements and general corporate purposes, as per company's DRHP report.

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 are assigned to non-institutional and retail individual bidders, respectively.

About the Company

The company commenced commercial operations in 2002 with small-scale production, initially focused on mixing micronutrient fertilizers. As of date, it manufactures Technical Grade and Formulation Grade agrochemical 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 188,920 MT of agrochemical products, according to the DRHP.

As of the date of the Draft Red Herring Prospectus, the company has obtained 404 generic registrations comprising 376 formulation-grade registrations and 28 technical-grade registrations for its agrochemical products.

The company's product portfolio includes insecticides, herbicides, fungicides, and plant growth regulators. It also manufactures other agrochemical products such as micronutrient 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 the UAE, Bangladesh, China (including Hong Kong), Turkey, Egypt, Kenya, and Nepal.

Client Base

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, and others.

"In fiscal 2024, out of the 1,194 corporate customers, 98 have been associated for more than 3 years. The company primarily operates 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," the company said in its DRHP report.

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