Indogulf Cropsciences IPO Subscribed 40% On Day 1 — Check GMP

Indogulf Cropsciences' initial public offering was subscribed 0.4 times or 40% on its first day of bidding on Thursday.

The exporter of crop protection, plant nutrients and biologicals products is looking to raise Rs 200 crore from the primary market. The IPO includes an offer-for-sale component, through which, two existing shareholders of the company would offload equity shares to raise Rs 40 crore.

The selling shareholders are Om Prakash Aggarwal and Sanjay Aggarwal, who would be paring 15.4 lakh equity shares and 20.6 lakh equity shares, respectively.

Systematix Corporate Services Ltd. will be the book-running lead manager to the issue, and Bigshare Services Pvt. will be the registrar, it added.

The company has set a price band of Rs 105 to Rs 111 per share for the IPO.

• Issue opens: June 26.

• Issue closes: June 28.

• Issue price: Rs 105-Rs 111.

• Fresh issue: Rs 160 crore.

• OFS segment: Rs 40 crore.

• Lot size: Minimum 135 shares, and then in multiples thereof.

The issue has been subscribed 0.4 times or 40% as of 5:00 p.m.

• Qualified institutional buyers: 0.05 or 5%.

• Non-institutional buyers: 0.27 or 27%.

• Retail investors: 0.69 times or 69%.

• Portion reserved for employees: 0.05 or 5%.

The grey market premium of the Indogulf Cropsciences IPO is Rs 11 as of 4:32 p.m. on Thursday, according to InvestorGain. This implies shares of the company will likely list at Rs 122 apiece, indicating a 9.91% premium to the upper end of the price band.

It should be noted that GMP, or grey market price, is not an official price quote for the stock and is based on speculation.

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