GSP Crop Science IPO: SEBI Filing Reveals Rs 280 Crore Fresh Issue Plan

GSP Crop Science Ltd. on Monday filed its preliminary papers with the capital markets regulator SEBI to raise funds through an initial public offering. The public offer will include an offer for the sale of 60 lakh shares and a fresh issue of up to Rs 280 crore, according to the draft red herring prospectus.

Vilasben Vrajmohan Shah, Bhavesh Vrajmohan Shah, and Kappa Trust are the promoters of the company offloading shares in the offer for sale. The offer also includes a reservation for a subscription by employees.

Equirus Capital and Motilal Oswal Investment Advisors are the book-running lead managers for the issue, and Link Intime India Pvt. will be the registrar of the issue.

The agrochemical company will use Rs 200 crore from the fresh proceeds for payment of debt, and a portion will be utilised for general corporate purposes.

The Ahmedabad-based company may consider raising Rs 56 crore as pre-IPO placement. If such placement is completed, the fresh issue size will be reduced.

GSP Crop Science is a research-focused agrochemical company that has expertise in developing and manufacturing insecticides, fungicides, herbicides, and plant growth regulators. The company has been in the industry for 39 years.

The company offers crop protection solutions to farmers, helping them maximise their produce through precisely composed products combining active ingredients and additives and technicals, which are concentrated active ingredients used to create formulations.

The company, as of September, had secured 507 registrations across Formulations and Technical for agrochemicals manufactured, supported by a focus on research and development.

The company's revenue in financial year 2024 stood at Rs 1,152.16 crore, in comparison to Rs 1,203.31 crore in the previous fiscal. The profit for the fiscal had also risen to Rs 61.29 crore from the Rs 21.55 crore reported in the previous fiscal.

For the first six months of this financial year, the revenue from operations was at Rs 703.46 crore and profit at Rs 65.87 crore.