Advance Agrolife shares close first day healthy, yet below listing price. Should you buy, sell or hold?

Shares of Advance Agrolife, ended their first trading day on Dalal Street with an 8.3% gain at ₹108.30 apiece, though below the listing price of ₹114, which represented a 14% premium over the issue price of ₹100.

Following the decent debut, analysts suggested that investors who received allotments could consider booking partial profits while retaining some shares with a stop-loss of ₹105.

Shivani Nyati, Head of Wealth at Swastika Investmart, advised investors to book partial profits after the strong listing gains while holding the remaining shares with a stop-loss set at ₹105 to ride potential medium-term upside.

Shivani highlighted that the company enjoys a competitive edge due to its strong distribution network and consistent growth in revenue and profitability over the reported periods.

SimranJeet Singh Bhatia, Senior Research Analyst – Equity at Almondz Global, said they maintain a positive view on the stock, given its consistent financial performance and strong market positioning. He recommended that investors consider holding or investing in the stock for the medium to long term.

As of FY25, the company holds 410 generic registrations, comprising 380 formulation-grade and 30 technical-grade registrations. Despite a slowdown in FY25, SimranJeet underscored the company’s healthy performance, noting steady growth in both revenue and profitability over the past three years, with FY25 revenue rising 10% to ₹502 crore and net profit increasing 4% to ₹25.6 crore.

Debt levels remain comfortably managed, and coverage ratios are well supported.

Advance Agrolife IPO details

The IPO, open between September 30 and October 03, received bids for 76.85 crore shares against an offer of 1.35 crore shares, resulting in a subscription of nearly 56.90 times.

The retail portion was subscribed 23.14 times, while non-institutional investors (NIIs) showed robust demand at 175.30 times. The qualified institutional buyers (QIBs) category was booked 27.31 times.

The ₹192.86 crore issue is entirely a fresh issue of 1.93 crore shares, with the price band being set between ₹95 and ₹100 per equity share.

About Advance Agrolife

Advance Agrolife is an agrochemical company engaged in manufacturing a wide range of agrochemical products that support the entire lifecycle of crops. It manufactures technical-grade and formulation-grade agrochemical products through its integrated manufacturing facilities.

The company's product portfolio includes insecticides, herbicides, fungicides, and plant growth regulators. It also manufactures other agrochemical products such as micronutrient fertilizers and biofertilizers.

The products are primarily sold domestically through direct sales to corporate customers on a B-2-B basis across the country, particularly in 19 states and 3 union territories.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.