Agrochem IPO opens for subscription on Friday

The company focuses on manufacturing, distribution and retailing of crop yield enhancing and protection products.

The book building issue has an offer price of Rs. 59 to 61 per equity share of face value of Rs. 10 each. The issue size at between Rs. 273.91 to Rs. 283.20 crore. The number of shares offered in the IPO is 464.26 lakhs. The minimum bid application is for 200 shares. The issue opens for subscription from June 28, 2019 and the offer closes on July 2. The company is also offering Rs. 3 per share discount to the retail investors and eligible employees.

According to the company, the objective of the IPO is to repay or prepay certain borrowing of the company in full or part and meet additional working capital needs.

K.P.R. Agrochem Limited is a Andhra Pradesh based company wherein the promoters currently hold 72.02 per cent equity shares. The company's product portfolio includes seeds, crop protection, and nutrients and veterinary feed supplements. Also, the company is into manufacturing sulphuric acid, one of its key ingredients. It produces sulphuric acid and other derived chemicals like LABSA, DMS and Oleum that have applications across industries.