Advanta plans IPO

The Bangalore-based Advanta India, an international agronomic seed company with market share of hardly 2 per cent, is entering the capital market with an initial public offering of 33.8 lakh equity shares with the price band between Rs 600 - 650 per equity share. The issue is opening for subscription on March 26 and closing on March 30.

The shares is proposed to be listed on the National Stock Exchange and Bombay Stock Exchange. Post issue, the promoters' holding would be diluted up to 65.97 per cent from 82.5 per cent now.

Advanta India, a subsidiary of United Phosphorus Ltd, enjoys with principal operations in India, Australia, Thailand and Argentina.

Its major source of income is sales of hybrid seeds of cotton and rice in India. The company has also introduced hybrid seeds for cannola, sorghum, mustard and sunflower.

The Rs 490 crore domestic seed industry is emerging as major centre for seed production in the South-east Asian region owing to the availability of a variety of crops growing in a varied range of climatic conditions in the country.

V R Kaundinya, MD & CEO, Advanta, said domestic hybrid seed sector is poised to grow 10 per cent as against the world average of 5 per cent.

Therefore, Advanta is also all set to reap the benefits in growing Indian seed business, he added.

The commercial seed market accounts for approximately 25 per cent of the total available seeds in the country. The remaining 75 per cent of the seeds are retained by farmers for sowing in the next season i.e. used as conventional seeds.