Arbuda Agrochemicals Files NSE Emerge IPO for 64 Lakh Shares to Fund ₹120 Crore Debt Repayment and New ALP Line

Mumbai, 24 September 2025: Arbuda Agrochemicals Limited has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) of up to 64,00,000 equity shares, proposing a listing on NSE Emerge. The issue comprises a fresh issue of 55,00,000 shares and an offer for sale (OFS) of 9,00,000 shares by promoter Mukeshkumar N. Patel.

Founded in 2010 and converted into a public company in 2024, Arbuda Agrochemicals manufactures household pesticides, crop insecticides, rodent and fly control products, rat glue traps, and pest control equipment. The company operates plants at Talod (Gujarat) and Vasai (Maharashtra) and holds certifications including ISO 9001:2015, HACCP, and GMP, along with 203 Central Insecticides Board & Registration Committee (CIB&RC) approvals. Its equity shares are proposed for listing on NSE Emerge.

IPO to Fund ₹1,170 Lakh ALP Manufacturing Line and ₹1,200 Lakh Debt Repayment

The proceeds from the fresh issue will primarily support a new Aluminium Phosphide (ALP) manufacturing line at Talod, Gujarat, valued at ₹1,170.64 lakh, alongside select capital expenditure (capex) at Talod and Vasai plants. Additionally, the company has earmarked ₹1,200 lakh for full or partial repayment of existing borrowings, while also allocating ₹150 lakh towards brand visibility and awareness campaigns.

The capex projects include new machinery, hot-melt adhesive facilities, and solar power additions aimed at cost reduction and sustainability. The proposed initiatives indicate a dual focus—expansion of manufacturing capacity and strengthening of balance sheet health.

Revenue Climbs 20.9% in FY25, PAT Jumps 45% on Strong Sales

Arbuda Agrochemicals reported a sharp improvement in financials for FY25, with revenue from operations rising to ₹7,521.98 lakh, up 20.9% from ₹6,219.63 lakh in FY24. Profit after tax (PAT) surged 45% year-on-year to ₹1,162.05 lakh, compared with ₹800.74 lakh in FY24 and ₹251.59 lakh in FY23, signalling a robust growth trajectory over the past three fiscal years.

The company’s EBITDA margin stood at 22.72% and PAT margin at 15.43% in FY25, while Return on Net Worth (RoNW) touched 33.01%. Net worth expanded to ₹3,520.14 lakh in FY25 from ₹2,367.85 lakh in FY24, while borrowings rose to ₹964.74 lakh, reflecting growth-linked funding needs.

Promoter Shareholding at 99.6% to Reduce Post Offer

Ahead of the IPO, Arbuda Agrochemicals has 1,60,10,000 paid-up equity shares, with the promoter holding 99.60%. Post-issue, the promoter’s stake will decline following the OFS of 9,00,000 shares. Final post-offer shareholding will be confirmed in the Red Herring Prospectus (RHP) and allotment documents.

Domestic Market Generates 99.34% of FY25 Revenue

The company’s revenue stream is overwhelmingly domestic, with ₹7,472.09 lakh (99.34%) of FY25 revenue from Indian markets, while exports contributed ₹49.89 lakh (0.66%). Maharashtra, Karnataka, Gujarat, West Bengal, and other states serve as key markets, supported by multi-branch sales offices across Mumbai, Bangalore, Hyderabad, Delhi, Kolkata, Raipur, and Lucknow.

This reliance on domestic demand underscores India’s sizeable pesticide and pest-control consumption base, while also leaving headroom for future export-led expansion.

Arbuda Agrochemicals’ IPO filing reflects its strategy of combining debt reduction with new capacity building. The company has demonstrated consistent financial growth over the past three years, with margins and return ratios strengthening. The upcoming capex and product expansions position it to enhance its domestic footprint further while preparing the ground for gradual export scaling.

REF: https://nsearchives.nseindia.com/emerge/corporates/content/Registration_23092025184647_ARBUDADRHPFINAL2209.pdf

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