Advance Agrolife IPO: Check IPO Date, Lot Size, Price & Details

Business Overview:

Incorporated in 2002, Advance Agrolife Limited is engaged in the manufacturing of a diversified portfolio of agrochemical and fertilizer products catering to the entire crop lifecycle. Its solutions are widely used in cultivating major cereals, vegetables, and horticultural crops across both Kharif and Rabi seasons in India.

The company’s product portfolio spans agrochemicals (insecticides, herbicides, fungicides, and plant growth regulators), fertilizers (micro-nutrients and bio-fertilizers), and technical grade products (active ingredients used in the production of formulations such as pesticides, herbicides, fungicides, and fertilizers).

Advance Agrolife operates on a B2B model, supplying directly to corporate customers across 19 states and 3 union territories in India, while also exporting to international markets including UAE, Bangladesh, China (including Hong Kong), Turkey, Egypt, Kenya, and Nepal.

The company has a strong manufacturing base with three facilities located in Jaipur, Rajasthan at Bagru and Dahami Khurd - equipped to support large-scale production. Advance Agrolife employed 543 permanent workers, comprising skilled and unskilled manpower, ensuring smooth operations and quality-driven output.

IPO Synopsis:

Objective of the Issue:

• Funding Working Capital requirements of the Company - ₹ 135 crores
• General corporate purposes.

Strengths:

• Integrated and Scalable Manufacturing Capabilities:
  The company operates three manufacturing facilities in Jaipur, Rajasthan, with a total installed capacity of 89,900 MTPA. Recent restructuring initiatives, including backward integration and facility specialization, have streamlined operations, ensured in-house raw material supply, and enhanced efficiency.
• Comprehensive and Diversified Product Portfolio:
  With a portfolio spanning insecticides, herbicides, fungicides, plant growth regulators, micro-nutrient fertilizers, and bio-fertilizers, the company has obtained 410 product registrations (380 formulation grade and 30 technical grade). This wide base reduces dependency on specific segments and strengthens its competitive positioning.
• Established Customer Base and Strong Relationships:
  Over 23 years of operations, the company has built lasting customer relationships, serving 849 corporate clients in FY25. Repeat customers remain a significant revenue driver, with 94 clients associated for over 3 years and 26 for over 5 years, contributing nearly 39% and 24% of FY25 revenues, respectively.
• Strong Promoter and Experienced Management Team:
  Promoters Om Prakash Choudhary and Kedar Choudhary bring long-standing experience, having been associated with the company since 2005 and 2016, respectively. Their leadership, combined with a seasoned management team, provides strategic vision and operational expertise, supporting growth and long-term sustainability.

Risks:

• High Trade Receivables:
  The company’s trade receivable days have risen sharply from 78 in FY23 to 111 in FY25, forming 32% of total sales. Elevated receivables increase working capital requirements and strain cash flows, potentially impacting liquidity and overall financial flexibility.
• Emergence of Alternative Pest Management Practices:
  Growing adoption of biotechnology-based products, pest-resistant seeds, genetically modified crops, and Zero Budget Natural Farming (ZBNF) poses a threat to traditional agrochemicals. While agrochemicals remain critical for crop protection, government incentives for sustainable practices could dampen demand and adversely impact future sales growth.
• Legal Proceedings against Company and Management:
  The company, along with its promoters, directors, and senior management, is involved in ongoing legal proceedings, including five criminal cases against the company and one against the promoters. Any adverse outcome may harm its reputation and financial performance.
• Underutilization of Manufacturing Facilities:
  Despite Facility I operating above average, Facilities II and III are underutilized, with capacity utilization below 50%. Failure to improve utilization or align production with demand could pressure margins and weaken returns on expanded capacity investments.

Financial Snapshot (Rs. In Crores):