In an increasingly agriculturally dependent world, Indogulf Cropsciences Limited plays a pivotal role by producing advanced crop protection products, plant nutrients, and biologicals. As one of the few Indian manufacturers of Spiromesifen and Pyrazosulfuron Ethyl technicals, Indogulf has carved a niche in the agrochemical sector. Now, the company is looking to tap the capital markets with its ₹200 crore Initial Public Offering (IPO) to enhance its manufacturing capabilities, repay debt, and fuel future growth.

This in-depth review explains the company’s profile, IPO details, financial metrics, and valuation insights to help potential investors evaluate the offering comprehensively.

1. Company Overview

Indogulf Cropsciences is a leading Indian manufacturer of crop protection products, plant nutrients, and biologicals. The company is recognized for producing:

• Spiromesifen technical with a minimum 96.5% purity since 2019.

• Pyrazosulfuron Ethyl technical (97% purity) since 2018—among the first few Indian producers.

The company operates multiple state-of-the-art facilities and has exported products to over 34 countries, indicating its strong global footprint. Its product portfolio supports farmers in improving yields and protecting crops from pests, weeds, and diseases.

The company is led by industry veterans:

• Om Prakash Aggarwal, Chairman – with over 30 years of strategic leadership experience.

• Sanjay Aggarwal, Managing Director – associated since inception, spearheading operations and business development.

2. IPO Details & Timeline

3. Utilization of Proceeds

The net proceeds from the fresh issue (₹160 crores) will be used for:

1. ₹65.00 crores – Working capital requirements

2. ₹34.12 crores – Repayment/prepayment of certain borrowings

3. ₹14.00 crores – Capital expenditure to set up an in-house Dry Flowable (DF) plant in Barwasni, Sonipat, Haryana

4. Balance – General corporate purposes

This strategic deployment of funds is aimed at capacity expansion, debt reduction, and operational scalability.

4. Financial Highlights

Key Observations:

• Revenue has shown consistent growth, maintaining above ₹500 crore in FY23 and FY24.

• EBITDA and PAT margins have remained stable, showcasing operational resilience.

• FY25 (Dec’24) numbers suggest continued upward momentum.

5. Valuation and Peer Comparison

Although the post-issue P/E appears high, the company trades at a discount to the industry average, which indicates reasonable pricing based on its revenue size, product diversity, and export potential.

6. Grey Market Premium (GMP) and Market Sentiment

• Current GMP: ₹11

• IPO Price: ₹111

• Expected Listing Price: ₹122

• Potential Listing Gain: ~9.90%

The steady Grey Market Premium reflects moderate investor enthusiasm, driven by the company’s solid fundamentals and global reach.

7. Competitive Strengths

• Diversified product portfolio across insecticides, herbicides, fungicides, and plant nutrients.

• Established international presence in over 34 countries.

• Indigenous manufacturing capabilities in critical agrochemical compounds.

• Experienced promoters with deep sectoral insight and operational track record.

• Forward-looking capital expenditure plan, including a new DF plant to expand product offerings.

8. Key Risks and Concerns

• Agrochemical industry is highly regulated and subject to environmental controls.

• Raw material price fluctuations can affect margins and inventory costs.

• Currency risks due to international operations and exports.

• Competitive pressure from MNCs and domestic players with scale advantages.

Investors must weigh these risks against the long-term growth potential and steady operational base.

9. How to Apply and Check Allotment

To Apply

Apply via your bank’s ASBA service or broker platform between June 26 to June 30, 2025. Ensure applications are made in multiples of 135 shares.

To Check Allotment (on or after July 01, 2025)

• Visit the Bigshare Services allotment status page

• Select “Indogulf Cropsciences IPO”

• Enter Application Number, PAN, or DP ID

• Click Submit to check your status

Conclusion

Indogulf Cropsciences Limited’s IPO presents a promising opportunity to invest in India’s expanding agrochemical sector. With robust financials, a diversified portfolio, and strong export capabilities, the company is well-positioned for sustainable growth. The IPO is reasonably priced, with a GMP of ₹11 suggesting potential near-term listing gains.

Recommendation: Given the financial trajectory and sector outlook, the IPO is suitable for high-risk investors seeking listing gains and moderate long-term exposure to agrochemical manufacturing.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investors are advised to consult with certified financial advisors and read all documents carefully before making investment decisions. Market conditions are subject to change.

The Upcoming IPOs in this week and coming weeks are Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Adcounty Media India, Marc Loire Fashions, Indogulf Cropsciences, Moving Media Entertainment, Valencia India, Neetu Yoshi, PRO FX Tech, Suntech Infra Solutions, Ace Alpha Tech.

The Current active IPO are Rama Telecom, Supertech EV, Sambhav Steel Tubes, HDB Financials, Abram Food, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Globe Civil Projects, Ellenbarrie Indutrial Gases, Kalpataru, AJC Jewel.

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