⁠Indogulf Cropsciences IPO GMP Indicates 10% Listing Gain; Check Issue Details

Indogulf Cropsciences Ltd. is set to launch its initial public offering (IPO) on Thursday, June 26.

The mainboard issue, comprising fresh issue of shares and an offer-for-sale portion, is aimed at raising Rs 200 crore from the primary market.

The company specialises in the production of crop protection solutions, plant nutrients and biologicals in India. Prospective investors should review the following details before deciding to participate in the Indogulf Cropsciences IPO subscription:

As of 9:35 a.m. on June 25, Indogulf Cropsciences IPO grey market premium (GMP) stood at Rs 11 apiece, according to Investorgain. Considering the upper end of the IPO’s price band of Rs 111 per share, the estimated listing price stands at Rs 122 (Rs 111 + Rs 11). The latest GMP suggests a potential listing gain of around 9.91% per share.

Note: GMP is not an official source of data and is based on speculation.

Indogulf Cropsciences IPO is a book-built issue worth Rs 200 crore. The mainboard IPO comprises a fresh issue of 1.44 crore equity shares, amounting to Rs 160 crore, along with an offer-for-sale (OFS) of 36 lakh shares, aggregating to Rs 40 crore.

The price band for the Indogulf Cropsciences IPO has been fixed between Rs 105 and Rs 111 per share.

Share allocation is divided among various investor categories. Up to 50% of the net issue is reserved for the Qualified Institutional Buyers (QIBs), while at least 35% is allocated to retail individual investors. The remaining 15% of the net offer size has been set aside for Non-Institutional Investors (NIIs).

The minimum lot size for applying to the Indogulf Cropsciences IPO is 135 shares. For retail investors, this translates to a minimum investment of Rs 14,175. For small non-institutional investors (sNII), the minimum application size is 14 lots, or 1,890 shares, requiring an investment of Rs 2,09,790. For big non-institutional investors (bNII), the minimum is set at 67 lots, or 9,045 shares, amounting to Rs 10,03,995.

Systematix Corporate Services Limited is the book-running lead manager for the Indogulf Cropsciences IPO, while Bigshare Services Pvt Ltd has been appointed as registrar.

The Indogulf Cropsciences IPO will remain open for subscription till Monday, June 30. The basis of allotment is expected to be finalised on Tuesday, July 1. Refunds are likely to be initiated on Wednesday, July 2, the same day that shares are expected to be credited to successful investors’ demat accounts.

The company’s shares are tentatively scheduled to be listed on the BSE and NSE on Thursday, July 3.

Established in 1993, Indogulf Cropsciences Ltd. operates four manufacturing units located across Samba in Jammu and Kashmir and Nathupur in Haryana, and one in Barwasni, Haryana. Indogulf has built a strong distribution network with a presence in 22 states and three Union Territories. It has 169 business partners, 5,772 distributors and an international footprint with 129 partners in 34 countries.

Use of Proceeds

Indogulf Cropsciences Ltd. plans to utilise the net proceeds from its IPO to support key business initiatives. A portion of the IPO proceeds will be used to meet the company’s working capital requirements. Funds will also be allocated toward repayment or prepayment of certain outstanding borrowings. Additionally, the company plans to invest in capital expenditure for setting up an in-house dry flowable (DF) plant at its Barwasni facility. Part of the proceeds will also be allocated for general corporate purposes.

Financials

In the financial year 2024, Indogulf Cropsciences Ltd. reported a net profit of Rs 28.2 crore and revenue from operations of Rs 552.2 crore. This marked an improvement from the previous fiscal, when the company posted a net profit of Rs 22.4 crore and revenue of Rs 549.6 crore.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.