Indogulf Cropsciences IPO Day 1 Live: Issue booked 40% so far. Check GMP, subscription status, key dates. Apply or not?

The initial public offering (IPO) of Indogulf Cropsciences, a producer of crop protection products, has opened for subscription starting today, June 26, and will close on June 30, Monday. Prior to its public offering, the company secured ₹58.20 crores from anchor investors.

Indogulf Cropsciences IPO price band has been fixed in the range of ₹105 to ₹111 per equity share of the face value of ₹10. The Indogulf Cropsciences IPO lot size is 135 equity shares and in multiples of 135 equity shares thereafter.

Indogulf Cropsciences IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

The allocation of shares for the Indogulf Cropsciences IPO is expected to be determined on Tuesday, July 1, with refunds beginning on Wednesday, July 2. On the same day following the refunds, shares will be deposited into the demat accounts of the successful applicants. The listing price for Indogulf Cropsciences shares is anticipated to be announced on the BSE and NSE on Thursday, July 3.

Indogulf Cropsciences Limited focuses on the production of crop protection products, plant nutrients, and biological solutions within India. In 2019, the company achieved the successful production of Spiromesifen technical with a purity level of 96.5% and became one of the first domestic manufacturers of Pyrazosulfuron Ethyl technical with 97% purity in India.

The company operates four manufacturing facilities across Samba (Jammu & Kashmir) and Nathupur (Haryana), occupying approximately twenty acres, which includes two locations in Nathupur and one in Barwasni, Haryana.

Indogulf boasts a distribution network that spans 22 states and 3 Union Territories in India, backed by 169 business partners, 5,772 distributors, and 129 collaborators in 34 countries globally.

According to the red herring prospectus (RHP), the company's listed peers include Aries Agro Ltd (with a P/E ratio of 17.47), Basant Agro Tech India Ltd (with a P/E ratio of 44.58), Best Agrolife Ltd (with a P/E ratio of 12.23), Bhagiradha Chemicals & Industries Ltd (with a P/E ratio of 101.81), Heranba Industries Ltd (with a P/E ratio of 35.34), India Pesticides Ltd (with a P/E ratio of 41.62), and Dharmaj Crop Guard Ltd (with a P/E ratio of 18.02).

Indogulf Cropsciences IPO Day 1 Live: Subscription Status

Indogulf Cropsciences IPO subscription status is 40% on day 1, so far. The retail portion was subscribed 69%, and NII portion has been booked 27%, Qualified Institutional Buyers (QIBs) portion receive 5% bids.

The company has received bids for 53,87,850 shares against 1,33,65,710 shares on offer, at 17:00 IST, according to data on BSE.

Indogulf Cropsciences IPO Day 1 Live: Competitive Strengths 

• Diversified product portfolio and specialized products across all three verticals.

• Established distribution network in India and abroad.

• Backward integrated manufacturing infrastructure.

• Strong R&D and product development capabilities.

• Experienced Promoters and a strong management team.

Indogulf Cropsciences IPO Day 1 Live: Anchor investor details

Indogulf Cropsciences announced on Wednesday that it has raised over ₹58 crore from anchor investors, just one day prior to the commencement of its initial share offering for public subscription.

Shares have been distributed in the anchor round to several entities, including Abakkus Asset Manager led by Sunil Singhania, Viney Growth Fund, Swyom India Alpha Fund, Sunrise Investment Trust - Sunrise Investment Opportunities Fund, and Rajasthan Global Securities.

As per a notice published on the BSE's website, Indogulf Cropsciences has allocated 52.43 lakh shares to these five entities at a price of ₹111 per share, resulting in a total deal value of ₹58.20 crore.

Indogulf Cropsciences IPO Day 1 Live: Subscription Status

Indogulf Cropsciences IPO subscription status is 2% on day 1, so far. The retail portion was subscribed 4%, and NII portion has been booked 1%, Qualified Institutional Buyers (QIBs) portion are yet to receive bids.

The company has received bids for 3,03,885 shares against 1,33,65,710 shares on offer, at 10:15 IST, according to data on BSE.

Indogulf Cropsciences IPO Day 1 Live: Review

According to Anand Rathi Research, in terms of valuation, the company is targeting a PE ratio of 24.6 times based on annualized FY25 figures, resulting in a post-issue market capitalisation of ₹7,015 million, making the offering reasonably priced.

Despite experiencing fluctuations in raw material prices over the past few years, the firm has demonstrated consistent growth in both its revenue and profits. The brokerage is confident that the company is positioned for long-term growth, supported by its backward-integrated manufacturing capabilities, dedicated research and development efforts, robust distribution and sales network, and a diverse range of products.

“Since the industry that company caters is cyclical, highly dependent on government’s initiatives, shift in consumer preference for organic production and with its fully priced scenario we believe that, the company is long run growth story which requires timely mass initiatives for agricultural boost, increase awareness of sustainable farming. So we give “SUBSCRIBE” rating for the issue,” said the brokerage.

Indogulf Cropsciences IPO Day 1 Live: IPO details

The IPO consists of a new issuance of equity shares valued at ₹160 crore and a share sale of up to 36.03 lakh shares from promoters Om Prakash Aggarwal (HUF) and Sanjay Aggarwal (HUF).

The funds raised from the new issuance, amounting to ₹65 crore, will be allocated for meeting working capital needs, while ₹34.12 crore will go towards debt repayment, ₹14 crore for capital expenditures, and general corporate uses.

Systematix Corporate Services serves as the exclusive book-running lead manager, while Bigshare Services will act as the registrar for the issue.

Indogulf Cropsciences IPO Day 1 Live: Indogulf IPO GMP today

Indogulf Cropsciences IPO GMP today or grey market premium is +11. This indicates Indogulf Cropsciences share price were trading at a premium of ₹11 in the grey market on Thursday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Indogulf Cropsciences share price was indicated at ₹122 apiece, which is 9.91% higher than the IPO price of ₹111.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: 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.