IPO Details
RHP/DRHPIssue Date
--
Investment/lot
--
Price Range
--
Lot Size
--
IPO Size
N/A
Schedule of Advance Agrolife IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Advance Agrolife IPO
The IPO of Advance Agrolife Ltd comprises a fresh issue of up to 19,285,720 equity shares of face value of ₹10 each. There is no offer for sale in this IPO, which is a 100% book-built issue.
The lot size and the price range are TBA. The listing dates are TBA. The credit of shares to the demat account will take place on TBA. The allotment of shares will take place on TBA. The initiation of refunds will take place on TBA.
Objectives of Advance Agrolife IPO
- Funding working capital requirements of the company
- General corporate purposes
Advance Agrolife IPO Valuation
Advance Agrolife IPO Share Offer and Subscription Details
| Investor | Shares Offer |
|---|---|
QIBs | Not more than 50% of the net issue |
Non-institutional Bidders | Not less than 15% of the net issue |
Retail Individual Bidders | Not less than 35% of the net issue |
Industry Outlook
Agriculture is the primary source of livelihood for about 58% of India’s population. As a result, the share of agriculture and allied sectors to the total economy’s Gross Value Added (GVA) has been significant and has increased over the years. The growth in the agriculture sector is expected to result in more demand for agrochemicals in India thus aiding its overall production and consumption.
The outbound shipments account for a major share of the Indian agrochemicals market and have grown at a CAGR of around 8.1% over the five-year period 2018-19 to 2022-23, thus driving the overall agrochemicals industry.
To support the ambition of making India a USD 5 trillion economy by 2025, the Indian agrochemical industry is estimated to make outbound shipments of around ₹385 billion by 2025. This target is also likely to encourage agrochemical/pesticide exports from India.
Company Information
Advance Agrolife Ltd is an agrochemical company engaged in manufacturing a wide range of agrochemical products that support the entire lifecycle of crops. Its products are designed for use in the cultivation of major cereals, vegetables, and horticultural crops across both agri-seasons, Kharif and Rabi, in India.
Strengths of Advance Agrolife IPO
Established, Integrated Manufacturing Setup at Strategic Location
As on September 30, 2024, the company has three manufacturing facilities spread across a cumulative 41,480.35 sq.m of land at Jaipur, Rajasthan, having total annual installed capacity of 89,900 MTPA. Its manufacturing facilities are equipped with advanced machinery and equipment that enable the production of both technicals and formulations while optimising operational efficiency.
The automation and technology integrated into its manufacturing facilities reduce manual intervention, enhance consistency, and productivity in manufacturing.
Diversified Product Portfolio of Agrochemical Products
The company is a B2B agrochemical company engaged in the manufacturing of a diverse range of agrochemical products that support the entire crop lifecycle. Its products are used in the cultivation of major cereals, vegetables, and horticultural crops across both Kharif and Rabi seasons in India. It manufactures both technical grade and formulation grade agrochemicals through its integrated manufacturing facility. Its product portfolio includes insecticides, herbicides, fungicides, plant growth regulators and other products such as micronutrient fertilisers and bio fertilisers.
Established Customer Base and Strong Relationships
The company believes that it has established strong customer relations in the course of over 22 years of operating experience. It believes that one of the key factors differentiating it from its competitors is the quality of its products and customer centric approach of offering products meeting the customers’ specifications.
It believes that this approach has helped it to not only grow its business but has also nurtured and expanded its market presence in the industry in which it operates.
Risks of Advance Agrolife IPO
- Dependence on a Limited Number of Customers
A major portion of its revenue from operations is dependent upon a limited number of customers and the loss of any of these customers or loss of revenue from any of these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.
- Geographical Concentration
The company’s manufacturing facilities, registered office and corporate office are located in Jaipur in the state of Rajasthan, India, which exposes its operations to potential geographical concentration risks arising from local and regional factors which may adversely affect its operations and in turn its business, results of operations and cash flows.
- Dependence on Few Suppliers for Raw Materials
The company depends on a few suppliers for the supply of raw materials. Any failure to procure such raw materials from these suppliers may have an adverse impact on its manufacturing operations and results of operations.
- Stringent Technical and Quality Specifications
The company is subject to stringent technical specifications and quality requirements in relation to its technical and formulation grade of agrochemicals. Its failure to comply with the quality standards and technical specifications may lead to loss of business from customers and could negatively impact its reputation, which would have an adverse impact on its business prospects and results of operations.
Advance Agrolife IPO Financials
Peer Comparison
| Company Name | Revenue from Operations (in ₹ crores) | EPS in ₹ | Return on Net Worth (in %) | NAV Per Equity Share in ₹ |
|---|---|---|---|---|
Advance Agrolife Ltd | 455.89 | 5.50 | 39.30 | 16.73 |
Dharmaj Crop Guard Ltd | 654.10 | 13.13 | 13.16 | 106.33 |
Insecticides India Ltd | 1966.38 | 34.59 | 10.60 | 342.44 |
Heranba Industries Ltd | 1257.07 | 8.72 | 4.14 | 210.71 |
IPO Registrar and Book Running Lead Managers
- IPO Registrar: KFin Technologies Ltd
- Book Running Lead Manager: Choice Capital Advisors Pvt Ltd
Business Model
The major product portfolio of Advance Agrolife Ltd includes insecticides, herbicides, fungicides, plant growth regulators. It also manufactures other agrochemical products such as micronutrient fertilisers and biofertilisers. Further, as on date, it manufactures technical grade and formulation grade agrochemicals products through its integrated manufacturing facilities.
Company Growth Trajectory
Advance Agrolife Ltd has demonstrated consistent growth in terms of revenues and profitability. Onwards year 2008, it has demonstrated consistent growth in terms of revenues and profitability. Its revenue from operations has grown from ₹2.637 crores in Fiscal 2008 to ₹455.899 crores in Fiscal 2024 registering a CAGR of 38% in the last 16 years.
Similarly, its profit after tax has grown from ₹0.023 crores in Fiscal 2008 to ₹24.732 crores in Fiscal 2024, registering a CAGR of 54.60% in the last 16 years. The company believes that it has been able to maintain its financial growth, due to an efficient business model.
Market Position
The products of Advance Agrolife Ltd 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, its products are also exported to 7 countries including UAE, Bangladesh, China (including Hong Kong), Turkey, Egypt, Kenya and Nepal during the six-months period ended on September 30, 2024, and Fiscal 2024, Fiscal 2023 and Fiscal 2022.
Advance Agrolife Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 457.20 | 397.97 | 252.83 |
Profit Before Tax (in ₹ crores) | 33.29 | 20.12 | 12.41 |
Profit After Tax (in ₹ crores) | 24.73 | 14.86 | 8.98 |
EPS in ₹ | 5.50 | 3.30 | 2 |
Advance Agrolife IPO Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 33.29 | 20.12 | 12.41 |
Net Cash (Used in)/ Generated from Operating Activities (in ₹ crores) | 14.82 | 6.17 | -0.01 |
Net Cash (Used in)/ Generated from Investing Activities (in ₹ crores) | -31.07 | -8.01 | -3.24 |
Net Cash (Used in)/ Generated from Financing Activities (in ₹ crores) | 16.62 | 1.44 | 3.64 |
Closing Cash and Cash Equivalents (in ₹ crores) | 0.045 | 0.07 | 0.47 |
How to Check Allotment Status of Advance Agrolife Ltd IPO?
Visit the Registrar’s Website
- Visit the official website of KFin Technologies Ltd
- Click on ‘IPO Allotment Status’ under ‘Investors’ under ‘Products’
- Click on any one of the links
- Select the IPO Name and enter either your application number, Demat account or PAN number
- Enter captcha and click on ‘Submit’ to know the status
Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Choose the Issue Type
- Select the Issue Name from dropdown
- Put in either your application number or PAN number
- Check the box ‘I’m not a robot’
- Click on ‘Search’ to know allotment status
Check on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Advance Agrolife Ltd IPO. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:
- Company name from dropdown
- Application number
- PAN Then click 'Submit' to know the allotment status.
How to Apply for Advance Agrolife IPO?
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Advance Agrolife IPO FAQs
Where can I read more about Advance Agrolife business?
You can read more about Advance Agrolife and its IPO from the company’s red herring prospectus (RHP) here.
What is the Advance Agrolife IPO?
The IPO of Advance Agrolife Ltd comprises a fresh issue of up to 19,285,720 equity shares.
When will the IPO of Advance Agrolife go live?
The dates of the IPO of Advance Agrolife Ltd are yet to be announced.
