Indogulf Cropsciences Limited, a domestic manufacturer of crop protection products, plant nutrients, and biologicals, is set to make its stock market debut on Thursday, July 3, 2025, after closing its ₹200 crore book-built IPO with significant demand.

The IPO, which opened for subscription on June 26, 2025, and closed on June 30, 2025, comprised a fresh issue of ₹160 crore through 144.14 lakh shares and an offer for sale of ₹40 crore via 36.03 lakh equity shares. The IPO was priced in a band of ₹105 to ₹111 per share, with a lot size of 135 shares, amounting to a minimum retail investment of ₹14,985.

Indogulf Cropsciences’ IPO saw massive interest from investors and was subscribed 25.98 times on the final day of bidding. The IPO allotment is expected on Tuesday, July 1, 2025, and investors will be able to check their allotment status online on the Bigshare Services website using application number, PAN, or DP Client ID.

Grey Market Premium (GMP) & Listing Expectations:

As of June 24, 2025, the Grey Market Premium (GMP) for Indogulf Cropsciences stood at ₹11, suggesting a likely listing price of ₹122, representing a potential 9.90% premium over the upper price band of ₹111. Though GMP does not guarantee listing performance, it provides indicative sentiment in the unregulated market.

Anchor Investors & Institutional Participation:

The company has raised ₹58.19 crore from anchor investors by allotting 52,43,242 equity shares at ₹111 apiece in consultation with the book running lead manager — Systematix Corporate Services Limited. The registrar for the issue is Bigshare Services Private Limited.

Equity shares allotted to anchor investors are part of the Qualified Institutional Buyers (QIB) category. The strong anchor response helped boost investor confidence during the subscription window.

About the Company:

Founded with a focus on agriscience, Indogulf Cropsciences is a notable name in the Indian agrochemical sector. It was among the first in India to manufacture Spiromesifen technical (minimum 96.5% purity) in 2019 and Pyrazosulfuron Ethyl technical (minimum 97%) in 2018, both with indigenous production methods.

As of 2025, the company exports its portfolio of crop protection chemicals, plant nutrients, and biological products to over 34 countries, reflecting its growing international footprint.

The Chairman, Om Prakash Aggarwal, and Managing Director, Sanjay Aggarwal, bring over 30 years of industry experience, leading the company with operational excellence and market insights.

Financial Overview:

The company's financial performance showcases consistent growth across multiple fiscal years:

• Revenue from operations:

  • FY2022: ₹4,902.30 million

  • FY2023: ₹5,521.89 million

  • FY2024: ₹5,557.87 million

  • 9M FY2025 (till Dec 31): ₹4,663.06 million

• EBITDA:

  • FY2022: ₹502.63 million

  • FY2023: ₹515.73 million

  • FY2024: ₹592.97 million

  • 9M FY2025: ₹468.95 million

• Profit after tax (PAT):

  • FY2022: ₹262.68 million

  • FY2023: ₹227.35 million

  • FY2024: ₹284.03 million

  • 9M FY2025: ₹217.77 million

• Key Ratios (FY24):

  • Pre-issue EPS: ₹11.94

  • Post-issue EPS: ₹4.49

  • Pre-issue P/E: 9.30x

  • Post-issue P/E: 24.70x

  • Industry P/E: 39x

  • ROCE: 18.82%

  • ROE: 12.19%

  • RoNW: 12.19%

  • Annualised EPS: ₹4.59

  • Annualised P/E: 24.16x

These metrics suggest reasonable valuation with moderate listing gain potential, aligning with broader investor interest in agrochemical businesses amid rising demand.

IPO Objectives:

The net proceeds from the IPO are proposed to be used as follows:

1. ₹65 crore for working capital requirements

2. ₹34.12 crore for repayment or prepayment of borrowings

3. ₹14 crore for setting up an in-house Dry Flowable (DF) plant at Barwasni, Sonipat, Haryana

4. Balance for general corporate purposes

Market Position & Industry Outlook:

India’s crop protection industry is seeing rising demand driven by:

• Increased food production needs

• Government subsidies on agri-inputs

• Export growth opportunities

• Biological and organic farming adoption

Indogulf Cropsciences is well-positioned to capitalize on this trend with its backward-integrated manufacturing, diverse product mix, and global market reach.

Risks & Considerations:

1. Raw material price volatility

2. High competition from domestic and multinational agrochemical companies

3. Regulatory risks tied to environmental approvals and product registrations

4. Concentration risks in product mix and export markets

Verdict – Apply for Listing Gains (High Risk Appetite):

With solid anchor interest, strong subscription, and moderate GMP of ~10%, Indogulf Cropsciences IPO is poised for a decent debut. While financials show stable growth, valuation is on the higher side post-issue.

Investors with risk appetite and short-term listing gain objectives may consider subscribing. Long-term investors should watch post-listing performance and scalability execution.

Disclaimer: This article is for informational and educational purposes only. It should not be construed as financial advice or a solicitation to invest. Please consult a SEBI-registered advisor before making investment decisions. Investing in securities markets involves risks. Read all IPO documents carefully before investing.

The Upcoming IPOs in this week and coming weeks are Smarten Power Systems, Glen Industries, Travel Food Services, Anthem Biosciences, Chemkart India, Meta Infotech, Happy Square Outsourcing Services, Cryogenic OGS.

The Current active IPO are Crizac, Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Marc Loire Fashions.

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