The initial public offering (IPO) of agrochemical manufacturer India Pesticides has been subscribed 3.41 times so far on June 24, the second day of the bidding process.

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The public issue received bids for 6.58 crore equity shares against the IPO size of 1.93 crore equity shares.

The portion set aside for retail investors has been subscribed 5.32 times while the part for non-institutional investors has been subscribed 70 percent, according to the subscription data available on the exchanges till 04:05 pm. Qualified institutional investors' portion received 2.09 times subscription.

The IPO size has been reduced to 1.93 crore equity shares after the company raised Rs 240 crore from anchor investors on June 22.

The price band for the offer has been fixed at Rs 290-296 per equity share. The issue closes on Friday.

The Rs 800-crore public issue includes a fresh issue of shares worth Rs 100 crore and an offer for sale of shares worth Rs 700 crore by promoters and shareholders.

Read here:

India Pesticides IPO opens for subscription on June 23; here are the key things to know

Given the company’s strong R&D capabilities, diversified product portfolio, positioning in the industry, loyal customer base, reasonable valuations and healthy financials, analysts have given a ‘Subscribe’ rating to the IPO.

Read here: India Pesticides IPO opens today: Should you subscribe?

ICICI Direct also assigned a ‘Subscribe’ rating to the issue.

“Since the company caters to a few large formulators globally, the upcoming capacity expansion is likely to improve the economies of scale. Further, technicals being a higher margin segment compared to formulations, increase in revenue share bodes well for return ratios and thereby valuations,” it said.

First Published:Jun 24, 2021 1:12 PM IST