Parijat Industries Files IPO Papers: ₹160 Cr Fresh Issue, OFS of 2.03 Cr Shares

New Delhi, Oct 1 – Agrochemical manufacturer Parijat Industries (India) Limited has filed its draft papers with the market regulator for an initial public offering (IPO) that combines a fresh issue and a large offer for sale (OFS). The public issue will include a fresh equity issue of up to ₹160 crore and an OFS of 2,03,70,680 equity shares by promoters, promoter group members, and existing investors. The equity shares are proposed to be listed on both the BSE and NSE.

The company may also consider a pre-IPO placement of up to ₹32 crore. If undertaken, the fresh issue size will be reduced accordingly. SBI Capital Markets and Ambit Private Limited are the book-running lead managers, while KFin Technologies has been appointed as the registrar and transfer agent.

Parijat Industries IPO Snapshot

The forthcoming IPO features a fresh issue of equity shares aggregating to ₹160 crore and an offer for sale of up to 2.03 crore equity shares. It also includes a possibility of pre-IPO placement of up to ₹32 crore. The issue will be made through a 100% book-built process and is proposed to be listed officially on both the BSE and NSE. The BRLMs for this issue are SBI Capital Markets and Ambit, and KFin Technologies Limited has been appointed as the registrar for the IPO.

Parijat Industries Financial Performance

In FY25, the company reported revenue from operations of ₹1,045.34 crore, up from ₹949.77 crore in FY24 and ₹1,028.50 crore in FY23. Profit after tax surged to ₹54.03 crore, recovering sharply from ₹9.84 crore in FY24. Key ratios include a basic EPS of ₹9.23 and a return on net worth of 25.92%. As of March 31, 2025, the net worth stood at ₹211.03 crore, with total borrowings of ₹276.75 crore, reflecting a strong turnaround in profitability.

Parijat Industries IPO Objectives and Offer Structure

The firm plans to utilize the funds from the fresh issuance primarily to repay or prepay borrowings of ₹121.60 crore, including interest, and for general corporate purposes. The offer will be available at a discount of up to 50% to QIBs (60% to anchor investors), at least 15% to NIIs, 35% to RIIs, and up to 5% to employees. Its promoters are Keshav, Sharat, Vikram, Uday Raj, and Shivraj Anand.

Parijat Industries IPO Strengths

• Operations that have both formulation integration and backward integration with technicals
• Diversified portfolio of insecticides, fungicides, herbicides, and nutrition products
• Global reach across 65 countries, strong domestic presence
• Continued improvement in profitability in FY25, with an expected excellent ROE of 26%

Parijat Industries IPO Key Risks

• Revenue concentration: More than 60% of revenues are generated from India, which exposes earnings to the impacts of crop cycles and weather fluctuations.
• Regulatory compliance: There are stringent licensing requirements for operating in different markets; thus, any non-compliance can significantly impact operations.
• Operational issues: In September 2025, a steam leak caused the Cuddalore technical unit to cease operations for a period.
• Working capital considerations: The agrochemical industry typically has longer receivable cycles and higher inventory levels.
• Debt levels: Borrowings for FY25 stood at ₹276.75 crore.

Parijat Industries is an Indian company operating in the crop protection chemicals industry, which encompasses a diverse range of products, including insecticides, fungicides, herbicides, bactericides, plant nutrition, and growth regulators. It has formulation facilities located in Ambala and Vadodara, a technical unit based in Cuddalore, and primarily distributes its products in 20 states throughout India, while also exporting to 65 countries.

REF: https://www.bseindia.com/corporates/download/341108/IPO Prior/ParijatDRHP_20250926000320.pdf

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations