Indogulf Cropsciences is set to open its IPO subscription on Thursday, 26th June 2025, and the window will close on Monday, 30th June 2025. The issue comprises a fresh offering of 1.44 crore equity shares, aiming to raise Rs. 160 crore, along with an Offer for Sale (OFS) of 0.36 crore shares, amounting to Rs. 40 crore.
The price band is set at Rs. 105 to Rs. 111 per share. Share allotment is likely to be finalised on Tuesday, 1st July 2025, with a tentative listing date on Thursday, 3rd July 2025, on both the BSE and NSE.
Retail investors can apply for the Indogulf Cropsciences IPO starting with a minimum lot of 135 shares, requiring an initial investment of Rs. 14,985. The maximum investment permitted for retail applicants is up to 13 lots, or 1,755 shares, amounting to Rs. 1,94,805.
Systematix Corporate Services Limited is acting as the book-running lead manager for the IPO, while Bigshare Services Pvt. Ltd. is handling the role of registrar for the issue.
GMP of Indogulf Cropsciences IPO
As of 25th June, Indogulf Cropsciences IPO was showing a Grey Market Premium (GMP) of Rs. 11 over its issue price of Rs. 111. This translates to an estimated listing price of Rs. 122, nearly a 9.91 percent gain.
Overview of Indogulf Cropsciences
Incorporated in 1993, Indogulf Cropsciences Limited is engaged in the business of manufacturing crop protection products, plant nutrients and biologicals in India. It manufactured Spiromesifen technical with 96.5 percent purity in 2019 and is one of the first few indigenous manufacturers of Pyrazosulfuron Ethyl technical, with a minimum purity of 97 percent in India.
The company operates four manufacturing facilities in Samba (Jammu & Kashmir) and Nathupur (Haryana), covering approximately twenty acres, including two sites in Nathupur and one in Barwasni, Haryana.
The company has a sales network across 22 states and 3 Union Territories in India, with 169 business partners, 5,772 distributors, and 129 partners in 34 countries worldwide.
Promoters of Indogulf Cropsciences Limited
The promoters of Indogulf Cropsciences – Om Prakash Aggarwal, Sanjay Aggarwal, Anshu Aggarwal, and Arnav Aggarwal – collectively hold a commanding 82.82 percent stake in the company. Among them, Om Prakash Aggarwal and Sanjay Aggarwal have significant experience in the agrochemical industry, including manufacturing, finance and marketing sectors. Additionally, the company’s Senior Management includes experts from the agrochemical industry with wide experience.
Objectives of the IPO Offer
Indogulf Cropsciences plans to use the net proceeds from the fresh issue to support its key business needs. Around Rs. 65 crore will be allocated towards meeting the company’s working capital requirements, Rs. 34.12 crore will go towards repaying/prepaying certain outstanding borrowings, and Rs. 14 crore capex for setting up an in-house dry flowable (DF) plant at Barwasni, Haryana. The remaining funds will be used for general corporate purposes.
Financial Performance
Indogulf Cropsciences experienced a marginal growth in its revenue from operations by around 0.5 percent YoY from Rs. 549.6 crores in FY23 to Rs. 552.2 crores in FY24, while the net profit registered a stronger performance, growing by about 16 percent YoY from Rs. 22.4 crores to Rs. 28.2 crores. For the nine-month period ending December 2024, the company recorded total revenue of Rs. 466.3 crore and a net profit of Rs. 21.7 crore. Indogulf Cropsciences’ revenue and net profit have grown at a CAGR of over 6 percent and 3 percent, respectively, over the last two years.
Indogulf Cropsciences vs Peers
Indogulf Cropsciences reported a face value of Rs. 10 per share, with a Basic EPS of Rs. 12 and Diluted EPS of Rs. 11.94, with Net Asset Value (NAV) per share standing at Rs. 97.98 for FY24.
Financially, the company delivered a RoE of 12.2 percent, RoCE of 11.93 percent, and a Return on Net Worth (RoNW) of 12.19 percent. The PAT Margin was 5.11 percent, and the EBITDA Margin came in at 10.09 percent. With a Debt-to-Equity ratio of 0.67 and a Price-to-Book (P/B) ratio of 1.13.
In contrast, Aries Agro Limited, another listed player, with a face value of Rs. 10 per share, posted a higher Basic EPS of Rs. 14.94 and a stronger NAV per share at Rs. 200.2. However, its RoNW was lower at 7.07 percent, indicating less efficient capital use despite stronger earnings per share. Basant Agro Tech (India) Limited, on the other hand, lagged behind with a Basic EPS of Rs. 0.43, NAV per share of Rs. 19.22, and a modest RoNW of just 2.27 percent.
Indogulf Cropsciences Strengths and Weaknesses:
Strengths
- Significantly expanded product portfolio from 198 offerings in FY22 to 288 by FY25
- Distribution and sales operations spread across 22 Indian states, and exports reaching over 34 countries
- The network includes 6,916 domestic distributors and 143 international partners
- Manufacturing is supported by four ISO-certified facilities situated on 20+ acres of land in India
- NABL-certified R&D division, with 39 products in the development pipeline.
- Backed by experienced promoters and a strong management team.
Weaknesses
- Any quality control issues could lead to cancelled orders and financial setbacks.
- Negative publicity/dilution of the brand could also erode customer trust.
- Although the company has posted a revenue CAGR of 6.46 percent, this may not be indicative of future growth.
- Capacity utilisation remained relatively low at 49.58 percent as of December 2024
- Reliance on credit-based sales could strain profitability due to potential delays in payments.
Written by Shivani Singh
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