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Advance Agrolife Ltd.

Advance Agrolife Ltd.

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Overview

Advance Agrolife Limited is an integrated agrochemical company that manufactures a diverse range of products supporting the entire crop lifecycle. Its portfolio includes insecticides, herbicides, fungicides, plant growth regulators, micro-nutrient fertilizers, and bio-fertilizers, produced in both Technical and Formulation grades. The company operates three manufacturing facilities in Jaipur, Rajasthan, serving a B2B corporate customer base across 19 Indian states and two union territories, with exports to seven countries. Key clients include DCM Shriram Limited and Indogulf Cropsciences Limited.

Opening Date

Sep 30, 2025

Closing Date

Oct 03, 2025

Listing Date

Oct 08, 2025

IPO Type

Mainboard

IPO Status

Closed

Issue Size

192.86 Cr

Fresh Issue

192.86 Cr

Offer for Sale

Price Band

₹95 - ₹100

Lot Size

150

IPO Timeline

Sep 30, 2025
Open Date
Oct 03, 2025
Close Date
Oct 06, 2025
Allotment Date
Oct 07, 2025
Initiation of Refunds
Oct 08, 2025
Listing Date

Financials

Revenue

Profit After Tax (PAT)

IPO Objective

The net proceeds of the Issue are proposed to be utilized for the following objectives:

  • Funding the company's working capital requirements to support business growth, manage extended credit terms in its B2B model, support the expansion of manufacturing capacity, handle increased inventory of raw materials and finished goods due to backward integration, and ensure timely payments to suppliers.

  • Funding general corporate purposes, which may include strategic initiatives, brand building, marketing expenses, and other operational needs. The amount for this purpose will not exceed 25% of the gross proceeds of the Issue.

Key Performance Indicator

P/E Ratio

12.34

EPS

8.12

ROE

25.42%

ROCE

27.02%

RONW

29.11%

Debt to Equity Ratio

0.8

PAT Margin

5.1%

EBITDA Margin

9.61%

P/B

5.98

SWOT Analysis

Strengths

  • Possesses an established and integrated manufacturing setup with three facilities strategically located in Jaipur, Rajasthan, having a total installed capacity of 89,900 MTPA.

  • Maintains a diversified product portfolio supported by a strong base of 410 generic registrations, including 380 for Formulation Grade and 30 for Technical Grade products.

  • Benefits from an established B2B customer base and strong, long-term relationships, with over 23 years of operating experience.

  • Led by strong promoters and an experienced management team with over two decades of collective expertise in the agrochemical sector.

Weaknesses

  • High revenue concentration with top 10 customers contributing 69.47% of revenue from operations in Fiscal 2025, posing a risk of customer loss.

  • Geographical concentration of all manufacturing facilities and corporate offices in Jaipur, Rajasthan, which exposes the company to regional risks.

  • Dependence on a few key suppliers for raw materials without having long-term supply contracts, leading to potential supply chain vulnerabilities.

  • Operates in a working capital-intensive industry, with significant funds blocked in trade receivables and inventory, which can strain liquidity.

Opportunities

  • Expand international footprint by entering new export markets beyond the current seven countries, leveraging the existing product portfolio and registrations.

  • Enhance backward integration and scale by setting up a new manufacturing facility for technical-grade agrochemicals.

  • Capitalize on the growing Indian agrochemical market, driven by the need to improve crop yields which are currently below the global average.

  • Broaden the product portfolio by securing new registrations for innovative molecules and formulations in both domestic and high-margin international markets.

Threats

  • Business operations are sensitive to unpredictable weather patterns, seasonality, and climate change, which directly impact the demand for agrochemical products.

  • Faces intense competition from domestic and international players who may possess greater financial, technological, and marketing resources.

  • Vulnerability to changes in government policies, regulations, and reductions in agricultural subsidies that could adversely affect the business environment.

  • Profitability is exposed to fluctuations in the prices of raw materials and foreign exchange rates, which can impact manufacturing costs and margins.

Subscription Rate

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