Rajasthan-based agrochemicals company Advance Agrolife's ₹193 crore IPO opened today, September 30. Investors can bid for a minimum of 150 shares. According to the Grey Market Premium, there is a b possibility of robust gains upon listing, but the company's business relies on government policies and subsidies, so investors should be mindful of the risks.
Advance Agrolife IPO: Advance Agrolife's ₹193 crore IPO opened for investors today, September 30. The company has issued 1.93 crore new shares, with a price band set at ₹95-100 per share. Investors can bid for a minimum of 150 shares, with allotment finalized by October 6 and shares listed on October 8. The funds raised from the IPO will be used by the company for its expansion and working capital requirements. According to experts, the Grey Market Premium indicates positive signals for listing, but reliance on government policies and subsidies could increase risks.
IPO Details
This IPO of Advance Agrolife is solely a fresh issue and does not include an Offer-for-Sale (OFS). The company has set a price band of ₹95 to ₹100 per share for this. Investors can apply for a minimum of 150 shares. The funds raised from the fresh issue will be utilized by the company for the expansion of its business. Approximately ₹135 crore of this will be spent to meet working capital requirements in the financial year 2026-27, while the remaining amount will be used for general corporate purposes.
Company Introduction and Performance
Advance Agrolife was established in 2009. The company manufactures and sells products such as insecticides, herbicides, fungicides, and plant growth regulators. With this IPO, the company's total valuation is assessed at ₹643 crore. In the financial year 2025, the company's profit stood at ₹25.6 crore, which is 3.66 percent higher than the previous year's ₹24.7 crore. During this period, the company's revenue also increased from ₹455.9 crore to ₹502.3 crore, registering an approximate growth of 10.2 percent.
SBI Securities recently assigned a 'Neutral' rating to Advance Agrolife's IPO. Analysts have highlighted the company's b manufacturing network and diverse product portfolio as key attractions. Despite this, analysts have pointed out certain risks. The company's business relies on government policies and subsidies provided to farmers. Therefore, any adverse changes in these regulations could impact the company's operations.
According to financial reports, the company's outstanding liabilities' duration was 78 days in the financial year 2023, which increased to 111 days in the financial year 2025. This poses a risk for investors as delays in trade receivables can affect the company's cash flow and profitability.
Grey Market Premium
Before listing, shares of Advance Agrolife traded at a premium of 10 to 15 percent over the price band in the Grey Market. According to data from Investorgain and IPO Watch, this premium suggests that the shares could offer some initial gains upon listing. It also indicates good investor enthusiasm for the company.
Benefits and Objectives of the IPO
Advance Agrolife's IPO has been launched with the objective of funding the company's expansion and fulfilling its working capital requirements. The funds will be utilized for developing new products, increasing production capacity, and strengthening the distribution network. This will further enhance the company's competitive position in the market.
Information for Investors
Investors can apply for a minimum of 150 shares in this IPO. According to the price band, the minimum investment will be ₹14,250, and the maximum investment will be determined by the investor's preference. Allotment is likely to be finalized by October 6. Investors should make their decisions during this period, keeping in mind the company's financial performance and future prospects.
