Incorporated in 2007, Andhra Pradesh based KPR Agrochem Limited is engaged in manufacturing, retailing and distribution activities of agriculture output enhancing and crop yield protection products. The company offers a wide product range including crop nutrients, crop protection, veterinary feed supplements, sulphuric acid and variety of seeds. The company also manufactures sulphuric acid-based chemicals such as oleum and LABSA which are used in synthetic detergents, agrochemicals, pharmaceuticals, and veterinary feed supplement industries.Some of the branded products offered by the company are: FAST, MOTOX - 10G, SAMRAT ATRAZINE 50% WP, MEGA IMIDA, ABHAYA CAL MIX, APURVA SEEDS, AJAY (14-35-14) and AJAY (20-20-0).
The company has 9 depots at different locations for easy onnectivity with nearly 8000 dealers across India. KPR Agrochem also has a chain of Kisan Seva Kendras to directly connect to end customers. The company is a part of the K.P.R. group, which is involved in chemicals, agri-inputs, poultries and rice mills related business.
The company has three manufacturing units located at Balabhadrapuram (Godavari district), Biccavolu (Godavari district), and Koppal district (Karnataka). This agrochem firm also has a waste heat recovery plant at Biccavolu to generate power from the steam residue collected during sulphuric acid production. In addition, it also has a quality control laboratory at:
(i) Biccavolu facility, Andhra Pradesh
(ii) Balabhadrapuram facility, Andhra Pradesh
(iii) Warangal facility, Telangana
(iv) Koppal facility, Karnataka
The competitive strengths of the company are:
1 Wide range of agro-input products
2 Strong and rapidly growing distribution chain
3 Independent raw material sourcing capabilities
4 Certified three manufacturing units
Company Promoters:
Papa Reddy Kovvuri, Venkata Mukunda Reddy Karri, Rajasekhar Reddy Kovvuri, Satyanarayana Reddy Kovvuri (S/O. Veeraraghava Reddy Kovvuri), Satyanarayana Reddy Kovvuri (S/O. Ramachandra Reddy Kovvuri) and Cresco Technology LLP are the promoters of the company.
Company Financials:
Summary of financial Information (Restated)
Particulars For the year/period ended (in Rs. Lakhs)
31-Dec-17 31-Mar-17 31-Mar-16 31-Mar-15 31-Mar-14 31-Mar-13
Total Assets 8,497.14 8578.55 7,975.04 7,300.44 7,106.61 7347.28
Total Revenue 4247.17 5,564.84 5,529.20 5,738.27 5,929.47 5,621.31
Profit After Tax 203.01 218.27 234.62 270.47 270.17 142.19
Objects of the Issue:
The Company intends to utilize the Net Proceeds for the following objects ("Objects of the Issue"):
1. Repayment/prepayment, in full or part, of certain borrowings availed by the Company;
2. To meet additional working capital requirement of the Company;
3. General corporate purposes
KPR Agrochem IPO Details
Issue Open Jun 28, 2019 - Jul 2, 2019
Issue Type Book Built Issue IPO
Issue Size 46,426,229 Eq Shares of Rs 10
(aggregating up to Rs 283.20 Cr)
Fresh Issue 34,426,229 Eq Shares of Rs 10
(aggregating up to Rs 210.00 Cr)
Offer for Sale 12,000,000 Eq Shares of Rs 10
(aggregating up to Rs 73.20 Cr)
Face Value Rs 10 Per Equity Share
Issue Price Rs 59 - Rs 61 Per Equity Share
Retail Discount 3
Employee Discount 3
Market Lot 200 Shares
Min Order Quantity 200 Shares
Listing At BSE, NSE
KPR Agrochem IPO Tentative Date / Timetable
Bid/Offer Opens On Jun 28, 2019
Bid/Offer Closes On Jul 2, 2019
Finalisation of Basis of Allotment Jul 5, 2019
Initiation of Refunds Jul 8, 2019
Credit of Shares to Demat Acct: Jul 9, 2019
IPO Shares Listing Date: Jul 10, 2019
Company Contact Information
K.P.R. Agrochem Limited
Door No. 8-256,
Tata Nagar, Balabhadrapuram-533 343
Andhra Pradesh, India
Phone: +91 8857 237 367/236 767
Email: ipo@kprgroup.net
Website: http://www.kpragrochem.com/
KPR Agrochem IPO Registrar
Karvy Computershare Private Limited
Karvy Registry House, 8-2-596, St. No. 1,
Banjara Hills, Hyderabad - 500 034
Andhra Pradesh, India
Phone: +91-40-23312454
Email: kpragrochem.ipo@karvy.com
Website: https://karisma.karvy.com/
Conclusion / Investment Strategy
KPRAL has nothing to do with listed KPR Mills or Sri KPR. The issue is fully priced based on its pre-IPO year's higher earnings. Major income is derived from the sale of fertilizers and insecticides. The southern region is witnessing water scarcity, which may dent KPRAG's business prospects. Their financial performance largely depends on monsoon behavior. Company has no plans for CapEx for the coming few years. Considering all these, there is no harm in giving this issue a miss.
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