India Pesticides, as expected made a decent debut. It got listed at Rs. 360 v/s IPO price of Rs.296/share, a premium of 22%.
The IPO did well, subscribing 29 times, with the institutional portion getting subscribed 42.95 times, non-institutional or HNIs by 51.88 and retail investors by 11.30 times.
In our New Issue Analysis, we had said that the sector is growing well due to high need for improved agri productivity and ‘China + one’ policy of user industry. Company is well placed due to its capacity expansion, high margin (both historically and in FY21), debt free balance sheet and reasonable valuation.
We had concluded - Strong margins, low equity coupled with healthy growth visibility due to expansion make the IPO attractive. We recommend ‘subscribe.’