On March 31, one of the leading agrochemical companies, Advance Agrolife, officially submitted its DRHP to the market regulator SEBI with the goal of raising funds via an Initial Public Offering (IPO).
There is no offer-for-sale element, this public issue consists of only a fresh issue of equity shares of up to 1.92 crore.
The reason behind raising funds via IPO is to utilize the funds of ₹135 crores for the working capital requirements. Whereas the remaining funds will be used for the company’s general corporate purposes.
The chosen merchant banker to handle this public issue is Capital Advisors.
The company is engaged in the business of providing a diverse range of agrochemical products that are made to be utilized in the growth of cereals, vegetables, and horticultural crops in India. Advance Agrolife is a master of producing effective products such as insecticides, herbicides, fungicides, and plant growth regulators.
The company mostly manufactures its products through B2B sales spanning 19 states and 3 Union territories. As of the date of submitting its draft papers, the company received 404 generic registrations, including 376 formulation-grade registrations and 28 technical-grade registrations for agrochemicals.
In FY24, the company generated revenue of ₹455.9 crore from operations. If we compare it to FY23, the revenue generated from operations was ₹397.0 crore, showcasing an incredible growth in the financial performance than last year.
The equity shares of this IPO are set to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Advance Agrolife IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
Advance Agrolife Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹252.84 | ₹240.42 | ₹8.99 |
| 2023 | ₹397.97 | ₹377.85 | ₹14.87 |
| 2024 | ₹457.21 | ₹423.92 | ₹24.73 |
| September 2024 | ₹299.40 | ₹269.49 | ₹21.44 |
Advance Agrolife IPO Valuation – FY2024
Advance Agrolife IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹5.50 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 39.30% |
| Net Asset Value (NAV): | ₹16.73 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Dharmaj Crop Guard Limited | 13.13 | 13.92 | 13.16 | 106.33 | 654.10 Cr. |
| Insecticides India Limited | 34.59 | 17.57 | 10.60 | 342.44 | 1,966.39 Cr. |
| Heranba Industries Limited | 8.72 | 24.29 | 4.14 | 210.71 | 1,257.07 Cr. |
Objects of the Issue
- Funding Working Capital requirements of our Company
- General Corporate Purposes
IPO Lead Managers aka Merchant Bankers
- Choice Capital Advisors Private Limited
