Crystal Crop Protection to raise Rs.1000 Crores through Public Offering

Agro-chemical firm Crystal Crop Protection today filed draft papers with the markets regulator SEBI to raise Rs 1,000 crore through an initial public offering (IPO). The IPO comprises a fresh issue of shares worth up to Rs 545 crore and an offer for sale of up to Rs 455 crore, from the promoter and existing shareholders, including Everstone Capital, according to the draft prospectus filed with SEBI.

Proceeds from the issue will be utilized towards repayment of certain working capital facilities availed of by the company, funding acquisitions and other strategic initiatives; and other general corporate purposes.

ICICI Securities, Axis Capital, HSBC Securities and Capital Markets (India), Nomura Financial Advisory and Securities (India) and SMC Capitals will manage the company's IPO.

The company has a diversified business, from manufacturing and marketing domestic agrochemicals to manufacturing and distribution of seeds, and the distribution of agri-equipment and export of agrochemical products.

The IPO will include a fresh issue of up to Rs. 545 crore and an offer for sale of up to Rs. 455 crore from its promoter and shareholders including Everstone Capital, said the company in a regulatory filing. The stock is likely to have a face value of Rs. 10 per share, however, the price band has not been decided.

The company is likely to utilize the funds raised from the IPO for the repayment of working capital facilities, acquisitions, strategic operations and other corporate purposes.

The IPO of the company will be managed by ICICI Securities, Axis Capital, HSBC Securities and Capital Markets, Nomura Financial Advisory and Securities, and SMC Capitals. 

The company is engaged in diversified business operations including manufacturing, marketing domestic agrochemicals; manufacturing and distribution of seeds, agri-equipment distribution and export of agri-chemical products. Agriculture stocks are likely to bolster up in the current fiscal on the back of normal monsoon and the government’s thrust on doubling rural income by 2020.