Some of the marquee Institutions that participated in the anchor includes Abakkus Diversified Alpha Fund, Viney Growth Fund, Swyom India Alpha Fund, Sunrise Investment Trust- Sunrise Investment Opportunities Fund and Rajasthan Global Securities.
Indogulf Cropsciences IPO: Should you invest?
Indogulf Cropsciences has posted stable top and bottom lines despite raw material price volatility in past years.
Brokerage firm Anand Rathi believes that the company is well-placed to achieve growth in long run, with is backward integrated manufacturing facilities, focused R&D capabilities, strong distribution and sales network and diversified product portfolio.
Given that the industry is cyclical and highly dependent on government initiatives, shifting consumer preferences toward organic production, and the company’s fully priced valuation, the brokerage believes ICL is a long-term growth story.
However, it also menitions the need for timely mass initiatives to boost agriculture and raise awareness about sustainable farming practices. As a result, it has assigned a ‘Subscribe’ rating to the issue.
In terms of valuation, based on annualised FY25 earnings, the company is seeking a P/E of 24.6 times. The post-issue market capitalisation is expected to be ₹701 crore, which the brokerage considers to be fairly priced.
Indogulf Cropsciences IPO: Price band
The price band for the IPO has been set at ₹105 – ₹111 per equity share. Investors can bid for a minimum of 135 equity shares and in multiples of 135 equity shares thereafter.
The IPO consists of a fresh issue of 1.44 crore equity shares aggregating to ₹160 crore and an offer for sale of 36.03 lakh shares worth ₹40 crore.
The issue will fetch ₹200 crore at the upper end of the price band.
Indogulf Cropsciences IPO: GMP today
Ahead of the issue launch, the shares of Indogulf Cropsciences are commanding a grey market premium of ₹11, indicating a premium of 10% over the IPO price.
However, it is important to note that grey market premiums are just an indicator of how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.
Indogulf Cropsciences IPO: Structure
About 50% of the net offer has been reserved for qualified institutional buyers, 15% for non-institutional bidders, and the remaining 35% for allocation to retail individual bidders.
Indogulf Cropsciences IPO: Objective
Funds raised from the IPO will be used to fund working capital, repay debt, and establish a new dry flowable plant in Haryana.
Company overview
Incorporated in 1993, Indogulf Cropsciences is engaged in manufacturing crop protection products, plant nutrients, and biologicals in India.
The company is also expanding its global footprint, with exports to over 34 countries, reflecting its growing presence in international markets.
On the financial front, the company recorded a revenue of ₹555.79 crore in FY24 with a PAT of ₹28 crore. It has demonstrated consistent performance with an EBITDA margin of over 10% and an ROE of 12.2%.
Systematix Corporate Services is the book-running lead manager of the Indogulf Cropsciences IPO, while Bigshare Services is the registrar.
The allotment for the Indogulf Cropsciences IPO is expected to be finalised on July 1, while the shares will list on BSE, NSE with a tentative listing date fixed as July 3.
