IIL promoters to dilute stake by up to 20%
Hyderabad: Promoters of Insecticides India Ltd (IIL), a Delhi-based agrochemicals company, plan to dilute 10-20 percent of their stake in the company, a senior company official said.
IIL Managing Director Rajesh Aggarwal said that though they wanted to dilute a certain percentage of their stake last year itself, but subdued market conditions prevented them from going ahead with their plans.
The promoters currently hold 74.69 percent share in the company, while foreign institutional investors (FIIs) and domestic institutional investors (DIIs) hold 6.2 and 5.33 percent, while the remaining stake is held by other shareholders.
"We thought of diluting some portion last year, but the market was not good at that time. Since major growth is happening now, we are open to dilution," Aggarwal told reporters here today.
"We will concentrate on growth now and then think about stake dilution. At present, the vision is to make Rs 100 crore profit after tax by next year," he said.
Replying to a query, he said promoters may dilute their stake anywhere between 10 to 20 percent.
He said the company achieved a Rs 650 crore turnover last year and aims to grow at 33 percent this year, driven by new products.
The company has entered into a joint venture with Japan-based Otsuka AgriTechno to set up a research and development centre in Rajasthan with an initial capex of around Rs 50 crore, to be made operational by the end of this year.
Aggarwal said new molecules from the joint venture are expected to roll out in four years. While IIL would hold marketing rights of new products developed by the JV for the Indian subcontinent and a few other countries, Otsuka will hold the same for the rest of the world, he added.