Agrochemical manufacturer Advance Agrolife has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO) through the Book Building Process. The issue comprises a fresh issue of up to 1.93 crore equity shares with a face value of INR 10 each. The company is not offering any shares via an Offer for Sale (OFS).
Advance Agrolife: IPO Structure and Issue Details
- Type: Fresh Issue
- Size: Up to 1,92,85,720 equity shares
- Listing: Proposed on both NSE and BSE
- Lead Manager: Choice Capital Advisors Private Limited
- Registrar: KFin Technologies Limited
- Purpose of the Issue:
- INR 135 crore to fund working capital requirements
- Remainder for general corporate purposes
Advance Agrolife: Business Overview
Founded in 2002, Advance Agrolife is a Rajasthan-based agrochemical company engaged in the manufacturing of formulation and technical-grade agrochemical products. The company’s portfolio includes:
- Insecticides, herbicides, fungicides, plant growth regulators
- Micro-nutrient fertilizers and bio-fertilizers
- Product forms: WDG, SC, EC, WP, and more
The company has secured 404 product registrations, including 28 Technical Grade and 376 Formulation Grade agrochemicals.
Manufacturing Infrastructure and Capacity
Advance Agrolife operates through three integrated manufacturing facilities in Bagru, Jaipur, covering 41,480.35 sq. m. These units are:
- Manufacturing Facility I – Technical-grade focus
- Manufacturing Facility II – Sulphur-based formulations
- Manufacturing Facility III – Formulation-based production
- Total installed capacity: 89,900 MTPA
- In-house laboratories for stringent quality control
- ISO 9001:2015 and ISO 14001:2015 certified
Advance Agrolife: Financial Highlights
| Particulars | FY2022 | FY2023 | FY2024 | H1 FY2025 |
| Revenue | 250.75 | 397.81 | 455.90 | 299.26 |
| EBITDA | 16.04 | 25.22 | 40.21 | 35.56 |
| EBITDA Margin (%) | 6.39 | 6.34 | 8.82 | 11.88 |
| Net Income | 8.99 | 14.87 | 24.73 | 21.44 |
| Margin (%) | 3.58 | 3.74 | 5.42 | 7.16 |
| RONW (%) | 28.81 | 34.46 | 39.30 | 24.94 |
| ROCE (%) | 28.31 | 34.38 | 37.62 | 24.51 |
| Debt/Equity | 0.59 | 0.50 | 0.60 | 0.47 |
| Days Working Capital | 57 | 48 | 55 | 46 |
Market Presence and Client Base
- Presence in 19 states and 3 union territories
- Exported to 7 countries, including UAE, Bangladesh, China, Turkey, and Kenya
- Strong B2B model with marquee clients like DCM Shriram, IFFCO MC, Mankind Agritech, and more
- Served 1,194 corporate clients in FY24, 98 of whom have been with the company for over 3 years
Industry Outlook: Strong Tailwinds for Agrochemical Sector
- Agriculture supports 58% of India’s population
- India ranks 4th globally in crop protection chemical production
- Domestic agriculture GVA grew at a CAGR of 3.3% from FY20 to FY24
- The global crop protection market is expected to grow 2.2% YoY in 2024
The rising demand for food grains, coupled with India’s position as a major exporter, sets a strong foundation for the sector and companies like Advance Agrolife.
Advance Agrolife: Conclusion
With a solid financial track record, expansive product portfolio, and growing domestic and international footprint, Advance Agrolife’s IPO aims to capitalize on India’s booming agrochemical sector. The fresh funds will support working capital, further boosting operational efficiency and scale.
In the first two months of 2025, a total of 10 Mainboard IPOs were listed in the Indian markets. These IPOs cumulatively raised INR 15,983.05 crore. Out of these, 3 IPOs delivered negative returns. The average listing returns for the last two month stand at 17.53%. It is quite low compared to 29.15% for the IPOs listed in November and December 2024. For more details related to IPO GMP, and Live Subscription, stay tuned to IPO Central.