Indogulf Cropsciences IPO Opens Soon: Price Band Set At Rs 105-111 Per Share – Key Dates, Lot Size, & Detail

Indogulf Cropsciences Limited is all set to launch its Initial Public Offering (IPO), which will open for public subscription on Thursday, June 26, and close on Monday, June 30. The company has fixed the price band between Rs 105 and Rs 111 per share, with each share having a face value of Rs 10.

IPO Details:

The Indogulf Cropsciences IPO includes a fresh issue of shares worth Rs 160 crore and an offer for sale (OFS) of 36,03,603 shares, aiming to raise a total of Rs 200 crore. Investors can apply for a minimum of one lot, which includes 135 shares. At the highest price of Rs 111 per share, one lot will cost Rs 14,985. If investors want to apply for more, they can do so in multiples of 135 shares.

The allocation to anchor investors is scheduled for Wednesday, June 25. Once the IPO closes on June 30, the basis of allotment will be finalized on Tuesday, July 1. Refunds will be issued on Wednesday, July 2, and shares will be credited to investors' demat accounts on the same day. The shares are expected to be listed on the BSE and NSE on Thursday, July 3.

The IPO has been divided into categories for different types of investors: 50% of the shares are reserved for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for Non-Institutional Investors (NIIs). The lowest price (floor price) is Rs 105 (10.50 times the face value of Rs 10), and the highest price (cap price) is Rs 111 (11.10 times the face value).

Systematix Corporate Services is acting as the book-running lead manager for the IPO, while Bigshare Services is the registrar handling the issue.

IPO Objective:

The funds raised through the IPO will be used for several purposes. Around Rs 65 crore will go towards meeting the working capital needs of the company. About Rs 34.12 crore will be used to repay or prepay some of the company's existing loans, either fully or partially. Another Rs 14 crore is planned for capital expenditure, specifically to set up a new in-house dry flowable (DF) plant at Barwasni in Sonipat district, Haryana. The remaining amount will be used for general corporate purposes.

About Indogulf Cropsciences:

Indogulf Cropsciences is a well-known Indian company in the agrochemical industry. It manufactures a range of products that help improve farming, including crop protection products, plant nutrients, and biological solutions.

In 2019, the company gained recognition for being one of the first in India to locally produce Spiromesifen technical with 96.5% purity and Pyrazosulfuron Ethyl technical with 97% purity.

The company runs four manufacturing plants-three located in Haryana (two in Nathupur and one in Barwasni) and one in Samba, Jammu & Kashmir. These facilities together cover around 20 acres of land.
Indogulf has built a strong distribution network across India, operating in 22 states and 3 Union Territories.

It works with 5,772 distributors and 169 domestic business partners. Internationally, it has 129 business partners across 34 countries, showing its global presence in the agrochemical market.

Listed Industry Peers:

According to the Red Herring Prospectus (RHP), Indogulf Cropsciences has several listed peers in the agrochemical and related sectors, each with different price-to-earnings (P/E) ratios.
These include Aries Agro Ltd with a P/E ratio of 17.47, Basant Agro Tech India Ltd at 44.58, Best Agrolife Ltd at 12.23, and Bhagiradha Chemicals & Industries Ltd with a high P/E of 101.81. Other peers mentioned are Heranba Industries Ltd with a P/E of 35.34, India Pesticides Ltd at 41.62, and Dharmaj Crop Guard Ltd at 18.02.

These comparisons help investors evaluate Indogulf's valuation in relation to other companies in the same industry.