Indogulf Cropsciences Limited, a prominent manufacturer of crop protection products, plant nutrients, and biologicals, has launched its ₹200 crore Initial Public Offering (IPO). The issue comprises a Fresh Issue of ₹160 crore and an Offer for Sale worth ₹40 crore. The company is also gaining traction in the export market, supplying to over 34 countries.

As of 11:00 AM on June 27, 2025, the IPO has been subscribed 0.60 times on the second day of bidding, while the Grey Market Premium (GMP) stands at ₹11, implying a 9.90% potential listing gain.

Company Overview

Indogulf Cropsciences Limited is an agrochemical company with a strong portfolio of crop protection chemicals, bio-nutrients, and technical-grade products. Notably, it:

• Was among the first indigenous manufacturers of Pyrazosulfuron Ethyl technical in India with 97% purity in 2018.

• Began production of Spiromesifen technical with 96.5% purity in 2019.

• Has grown into a recognized exporter, with reach in 34+ countries.

Their core focus is to support agricultural productivity through high-quality, innovative, and sustainable solutions.

IPO Details and Timeline

• IPO Open Date: June 26, 2025

• IPO Close Date: June 30, 2025

• Listing Date (Tentative): July 03, 2025

• Allotment Date (Tentative): July 01, 2025

• Price Band: ₹105 to ₹111 per equity share

• Lot Size: 135 shares

• Retail Investment Minimum: ₹14,985

• HNI Minimum Investment (14 lots): ₹2,09,790

• Total Issue Size: ₹200 Crores

• Fresh Issue: ₹160 Crores

• Offer for Sale (OFS): ₹40 Crores

• Post-Issue Market Capitalisation at ₹111: ₹701.54 Crores

• Stock Exchanges: BSE and NSE

IPO Lead Manager and Registrar

• Book Running Lead Manager: Systematix Corporate Services Limited

• Registrar: Bigshare Services Private Limited

These entities are managing the IPO process, investor services, and allotment status operations.

Anchor Investment Update

The company has already secured ₹58.19 Crores from Anchor Investors, allocating 52,43,242 equity shares at the upper price band of ₹111. This reflects strong institutional confidence in the company's future prospects.

Indogulf Cropsciences IPO GMP Trend

Though GMPs are unofficial and not regulated, a premium of ₹11 indicates decent investor interest and potential listing gains, particularly appealing to short-term market participants.

Live Subscription Status

As per BSE updates on Day 2 at 11:00 AM, the IPO has been subscribed 0.60 times. This is a moderate response, and the final day will be crucial for a full subscription.

Objects of the Issue

The net proceeds from the IPO will be used for the following:

1. ₹65 crore for working capital requirements.

2. ₹34.11 crore for repayment or prepayment of certain borrowings.

3. ₹14 crore for capital expenditure on a Dry Flowable (DF) plant at Barwasni, Sonipat, Haryana.

4. Remaining funds for general corporate purposes.

This fund utilisation strategy is aimed at enhancing capacity, reducing debt, and supporting long-term growth.

Financial Performance Overview

Revenue from Operations (₹ in Millions):

• FY2022: ₹4,902.30

• FY2023: ₹5,521.89

• FY2024: ₹5,557.87

• 9 Months FY2025 (Dec 31): ₹4,663.06

EBITDA (₹ in Millions):

• FY2022: ₹502.63

• FY2023: ₹515.73

• FY2024: ₹592.97

• 9 Months FY2025: ₹468.95

Profit After Tax (₹ in Millions):

• FY2022: ₹262.68

• FY2023: ₹227.35

• FY2024: ₹284.03

• 9 Months FY2025: ₹217.77

These numbers highlight consistent operational and profit performance, although FY23 showed slight PAT decline before rebounding in FY24.

Valuation and Key Ratios

• Pre-Issue EPS (FY24): ₹11.94

• Post-Issue EPS (FY24): ₹4.49

• Annualised EPS (FY25): ₹4.59

• Pre-Issue P/E: 9.30x

• Post-Issue P/E: 24.70x

• Annualised P/E: 24.16x

• Industry P/E Benchmark: ~39x

Return Ratios:

• ROCE (FY24): 18.82%

• ROE (FY24): 12.19%

• RoNW: 12.19%

The valuation is fairly priced when compared to sector P/E multiples, making it a balanced opportunity for investors looking at both growth and value.

Allotment Status – How to Check

Investors can check the allotment status starting July 01, 2025, by following these steps:

1. Visit the Bigshare Services Allotment Page

2. Select “Indogulf Cropsciences Limited IPO” from dropdown

3. Enter Application Number / PAN / DP Client ID

4. Click “Submit” to view status

This will help investors know if they’ve been allotted shares and plan their trading accordingly.

Should You Apply for Indogulf Cropsciences IPO?

✅ Reasons to Consider:

• Strong presence in domestic and global agrochemical markets

• Consistent revenue growth and profit generation

• Post-issue P/E at 24.70x is lower than industry average (39x)

• ₹11 GMP indicating listing gains of nearly 10%

• Robust anchor investor participation showing institutional backing

⚠️ Points to Monitor:

• Final day subscription will determine overall market demand

• P/E jumps significantly post-issue (from 9.3x to 24.7x)

• Medium-size IPO at ₹200 Cr may not attract speculative frenzy like SME IPOs

Our Verdict: Investors with a moderate-to-high risk appetite can consider applying for listing gains. The company’s fundamentals and valuations support this view, especially if Day 3 sees strong demand.

The Upcoming IPOs in this week and coming weeks are Crizac, Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Marc Loire Fashions.

The Current active IPO are Neetu Yoshi, Adcounty Media India, Moving Media Entertainment, Valencia India, PRO FX Tech, Ace Alpha Tech, Indogulf Cropsciences, Suntech Infra Solutions, Rama Telecom, Supertech EV, Sambhav Steel Tubes, HDB Financials.

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