Ambey Laboratories
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 04 Jul 2024 – 08 Jul 2024
- Listing date
- 11 Jul 2024
- Face value
- ₹10 per share
- Issue price
- ₹68 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹44.68 Cr
- Market cap at offer price
- ₹172 Cr
- Promoter holding
- 94.97% → 69.90% pre-issue → post-issue
- ISIN
- INE0M3I01029
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Novus Capital Advisors Pvt.Ltd.
- Registered office
- Ground Floor, Property No.555, Tarla Mohalla, Ghitorni, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 18,72,000 | — | — |
| Market maker | 3,30,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹68
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,36,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,72,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,52,000 |
| B-HNI (min) | 8 | 16,000 | ₹10,88,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.44 | 2.89 |
| P/E (×) | 27.87 | 23.53 |
| Price to book (×) | 3.58 | — |
| Market cap | — | ₹172 Cr |
Key performance indicators
- Return on net worth
- 20.80%
- ROCE
- 13.14%
- Debt / equity
- 0.58
- PAT margin
- 6.01%
- NAV per share
- ₹18.98
- Price to book
- 3.58
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Ambey Laboratories
Ambey Laboratories Limited was founded on 20th March 1985 as a private limited company and converted to a public limited company in 2014. The company manufactures a range of chemical products including 2,4-D formulations, Chlorpyriphos, Thiamethoxam, Pretilachlor, Metribuzin, Hexaconazole, and Metalaxyl for a customer base comprising large corporates. The company operates a manufacturing facility in Rajasthan spanning over 20,183.50 SQM. Operations are spread across India and abroad, with focus on crop protection to support agricultural activities. The company is jointly promoted by Archit Gupta, Arpit Gupta, Sarina Gupta, and Rishita Gupta, continuing the legacy established by founders Anil Kumar Gupta and Kewal Sehgal.
Company Analysis
from RHPAmbey Laboratories Limited manufactures agrochemicals (herbicides, insecticides, pesticides, fungicides) and specialty chemicals for crop protection and pharmaceutical applications.
Ambey Laboratories Limited was founded on 20th March 1985 as a private limited company and converted to a public limited company in 2014. The company manufactures a range of chemical products including 2,4-D formulations, Chlorpyriphos, Thiamethoxam, Pretilachlor, Metribuzin, Hexaconazole, and Metalaxyl for a customer base comprising large corporates. The company operates a manufacturing facility in Rajasthan spanning over 20,183.50 SQM. Operations are spread across India and abroad, with focus on crop protection to support agricultural activities. The company is jointly promoted by Archit Gupta, Arpit Gupta, Sarina Gupta, and Rishita Gupta, continuing the legacy established by founders Anil Kumar Gupta and Kewal Sehgal.
Objects of the Issue
- To meet Working Capital Requirements ₹3,093.20 Lakh p.31
- General corporate purposes p.31
- Issue related expenses ₹16.44 Lakh p.31
- To meet out the Working Capital requirements of the Company ₹3,093.20 Lakhs p.107
- To meet out the General Corporate Purposes p.107
- To meet out the Issue Expenses p.107
- Not specified in this part of the document
- Not explicitly detailed in the objects of the issue section of this document part
Issue Structure
- Total Issue
- ₹[●] Lakhs
- Fresh Issue
- Up to 62,58,000 Equity Shares aggregating up to ₹[●] Lakhs
- Offer for Sale
- Up to 3,12,000 Equity Shares aggregating up to ₹[●] Lakhs
- Price Band
- ₹[●] (Floor Price) to ₹[●] (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company manufactures technical-grade and formulated agrochemicals and specialty chemicals sold primarily to large corporate customers. Revenue is generated through the sale of chemical compounds used in crop protection (herbicides, insecticides, pesticides, fungicides) and pharmaceutical applications. The company works on a model wherein inventory/goods are procured based on customer demand or requirement.
Business Segments
SWOT Analysis
- • Established manufacturing presence in Rajasthan with significant land area(p.31)
- • Diversified product portfolio in agrochemicals and specialty chemicals(p.31)
- • Quality certifications and compliance systems in place(p.44)
- • Established manufacturing facility with quality certifications(p.144)
- • Zero Liquid Discharge plant ensuring environmental sustainability(p.144)
- • Diversified product portfolio in agrochemicals and home hygiene(p.144)
- • Established customer relationships with large corporates(p.145)
- • Advanced quality control infrastructure(p.144)
- • Experienced promoter-driven management with strong expertise in agrochemicals(p.160)
- • Strategic location of manufacturing facility with developed industrial infrastructure(p.160)
- • Strong quality assurance processes ensuring product consistency and customer satisfaction(p.160)
- • Established cordial relationships with raw material suppliers(p.160)
- • Leadership position in 2,4-D product line with market expertise(p.161)
- • Strong customer relationships driving repetitive business(p.161)
- • Over four decades of operation in agrochemical sector with established manufacturing capability(p.280)
- • ISO 9001:2015 and ISO 14001:2015 certifications demonstrating quality and environmental standards(p.280)
- • State-of-the-art manufacturing with Zero Liquid Discharge (ZLD) facility ensuring minimal emissions(p.280)
- • Advanced quality assurance infrastructure with PLC and testing capabilities(p.280)
- • Positive net worth and improving profitability metrics over period(p.267)
- • Strong debt service coverage ratio of 3.86x indicating capacity to service debt(p.268)
- • Significant dependence on a small number of major customers(p.40)
- • Leased properties including registered office creates operational risk(p.39)
- • Environmental compliance obligations with significant financial exposure(p.39)
- • High indebtedness with floating rate interest obligations(p.49)
- • Unsecured loans repayable on demand create liquidity risk(p.49)
- • Negative cash flows from operations in recent period(p.44)
- • Director unable to provide authentic copy of degree(p.48)
- • Delayed statutory tax payments incurring penalties(p.49)
- • Negative operating cash flow in recent period(p.118)
- • Significant increase in trade receivables indicating collection challenges(p.110)
- • High dependence on few major customers(p.110)
- • Volatile profitability with declining margins(p.118)
- • Significant inventory holding requirements(p.111)
- • Inability to meet growing export market demand(p.162)
- • Declining capacity utilization in agro-chemical products(p.175)
- • High dependence on core product 2,4-D for majority of revenue(p.175)
- • High customer concentration with top two customers contributing 86.6% of sales(p.289)
- • High supplier concentration with top two suppliers contributing 86.29% of purchases(p.289)
- • Material contingent liability of Rs. 870.88 lakhs from outstanding tax demand(p.275)
- • GST liabilities not reconciled with GST portal; Rs. 55.71 lakhs paid post-period-end(p.267)
- • Statutory dues non-payment history with Rs. 17.56 lakhs in PF/ESI arrears paid after period end(p.267)
- • Multiple pending litigations against the company including cheque bounce case and environmental compensation claim(p.292)
- • Growing global agrochemical export market with India as major exporter(p.30)
- • Low herbicide penetration in India relative to developed countries(p.31)
- • Export opportunities during off-season transition periods(p.42)
- • Growing agrochemical market in India with strong CAGR(p.135)
- • Rising demand for herbicides in Indian agriculture(p.135)
- • Expansion of specialty chemicals market with favorable government policies(p.131)
- • Potential for export growth given India's global market position(p.134)
- • Opportunity to extend credit terms to attract new customers(p.110)
- • Backward integration into raw material manufacturing(p.161)
- • Forward integration through small pack retail market entry(p.161)
- • Expansion of installed manufacturing capacity(p.161)
- • Growing export market potential(p.162)
- • Wallet share expansion with existing customers and new customer acquisition(p.161)
- • Introduction of new products contributing up to 35% of total sales(p.284)
- • Export business expansion during non-seasonal transition periods(p.289)
- • Diversification into home hygiene products with growing revenue(p.281)
- • Revenue growth trajectory with CAGR of 13.24% from FY 2021 to 2023(p.281)
- • RoHS compliance and international certifications enabling market access(p.280)
- • Raw material price volatility and supply chain disruptions(p.45)
- • Regulatory changes and compliance requirements in chemicals sector(p.58)
- • Intense competition in agrochemicals and specialty chemicals markets(p.46)
- • Economic slowdown affecting agricultural demand and customer spending(p.60)
- • Business seasonality and weather-dependent demand fluctuations(p.42)
- • Natural disasters and pandemic disruptions to operations(p.44)
- • Single manufacturing facility concentration risk(p.44)
- • Tax and regulatory uncertainties(p.59)
- • Intense competition in the agrochemical sector from global and domestic players(p.131)
- • Regulatory risks in pesticide and herbicide manufacturing(p.135)
- • Dependence on imported raw materials and global supply chain volatility(p.145)
- • Currency and commodity price fluctuations affecting input costs(p.68)
- • High GST rate on agrochemicals impacting competitiveness(p.135)
- • Regulatory risks from hazardous chemical classification(p.162)
- • Exposure to changes in government policies affecting agrochemicals(p.162)
- • Consumer sentiment shifts and market preferences(p.162)
- • Competitive pressure from new entrants(p.162)
- • Competition from larger corporates with greater resources(p.179)
- • Business seasonality with significant revenue fluctuations between Kharif and Rabi seasons(p.289)
- • Competitive market conditions with existing and potential competitors(p.289)
- • Environmental compliance obligations and pollution control requirements(p.292)
- • Raw material cost volatility impacting margins(p.284)
- • Foreign exchange fluctuations affecting export earnings(p.282)
- • Regulatory changes and government policies affecting agrochemical sector(p.282)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sarina Gupta | Promoter | 93.10% | 68.49% |
| Rishita Gupta | Promoter | 1.87% | 1.40% |
| Archit Gupta | Promoter | — | — |
| Arpit Gupta | Promoter | — | — |
| Sarina Gupta | Promoter | 93.10% | 68.54% |
| Rishita Gupta | Promoter | 1.87% | 1.41% |
| Archit Gupta | Promoter | — | — |
| Arpit Gupta | Promoter | — | — |
| Sarina Gupta | Promoter | 93.10% | — |
| Rishita Gupta | Promoter | 1.87% | — |
| Archit Gupta | Promoter | — | — |
| Arpit Gupta | Promoter | — | — |
| Anil Gupta | Promoter | — | — |
| Arpit Gupta | Promoter/Director | — | — |
| Archit Gupta | Promoter/Director | — | — |
| Sarina Gupta | Promoter/Director | — | — |
| Rishita Gupta | Promoter/Director | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.