Upcoming IPO: Advance Agrolife Filed DRHP with SEBI to Raise ₹135 Crore

Advance Agrolife Limited, an agrochemical company, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) in order to raise funds through an Initial Public Offering (IPO). Advance Agrolife IPO will be a fresh issue of up to 1,92,85,720 shares with no offer-for-sale component.

Use of IPO Proceeds

The funds raised from this upcoming IPO, amounting to ₹135 crore, will be used for working capital requirements and general corporate purposes, as outlined in the company’s DRHP.

The offering will be conducted via the book-building process, with no more than 50% of the net offer allocated to qualified institutional buyers. At least 15% and 35% of the net offer will be reserved for non-institutional and retail individual bidders, respectively.

About Advance Agrolife Limited

Advance Agrolife Limited began commercial operations in 2002 with small-scale production, initially focused on mixing micronutrient fertilizers. Today, it produces both technical-grade and formulation-grade agrochemical products through integrated manufacturing facilities.

The company’s products are used in the cultivation of major cereals, vegetables, and horticultural crops across both the Kharif and Rabi agricultural seasons in India. It manufactures formulation-grade agrochemicals in various forms, including water-dispersible granules (WDG), suspension concentrate (SC), emulsifiable concentrate (EC), capsule suspension, and wettable powder (WP). Since 2008, it has produced 188,920 MT of agrochemical products, as per the DRHP.

Client Base

Notable corporate clients include DCM Shriram Limited, IFFCO MC Crop Science Private Limited, Indogulf Cropsciences Limited, Mankind Agritech Private Limited, HPM Chemicals and Fertilizers Limited, and ULink AgriTech Private Limited, among others.

“In fiscal year 2024, the company served 1,194 corporate customers, with 98 having been long-term partners for over three years. The company operates primarily from three manufacturing facilities located in Jaipur and is supported by a strong infrastructure, including dedicated storage for raw materials and finished goods. As of September 30, 2024, the total installed capacity was 89,900 MTPA,” the company noted in its DRHP report.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.