Indogulf Cropsciences Ltd. had a lacklustre debut on Dalal Street as the stock listed at its IPO price of Rs 111 apiece on Thursday. The stock began trading on both NSE and BSE at the issue price.
Notably, the IPO was subscribed 27.17 times, showing strong interest from all sections. The public issue was subscribed 14.97 times in the retail category, 31.73 times in institutional, and 49.06 times in the non-institutional investor category by June 30.
The exporter of crop protection, plant nutrients and biologicals raised Rs 200 crore from the primary market. The amount raised through the fresh issue will be used for setting up an "in-house dry flowable plant" in Haryana's Sonipat, the company said.
The proceeds will also be used for funding working capital requirements, repayment or prepayment of certain outstanding borrowings, capital expenditure, and general corporate purposes, it added.
The IPO included an offer-for-sale component, through which two existing shareholders of the company offloaded equity shares to raise Rs 40 crore. The selling shareholders were Om Prakash Aggarwal and Sanjay Aggarwal.
As per Anand Rathi Research, the company has posted stable top and bottom lines despite raw material price volatility in past years. Analysts said Indogulf Cropsciences is well placed to achieve growth in long run, with backward integrated manufacturing facilities, focused R&D capabilities, strong distribution and sales network and diversified product portfolio.
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