Indogulf Cropsciences IPO Subscribed 36% So Far On Day 1; GMP At Rs 11 – Will You Apply?

The initial public offering (IPO) of agrochemical company Indogulf Cropsciences opened for subscription today and will remain open until Monday, June 30. By 2:03 PM on Day 1, the IPO was subscribed 32%. Indogulf Cropsciences aims to raise Rs 200 crore from this IPO which will be used for the company's growth and expansion.

IPO Subscription Details:

AJC received bids for 46,16,325 shares out of 1,27,74,776 shares available. This means the overall subscription stood at 36% by 3.30 PM on June 26, according to data on chittorgarh.com.

Retail investors have subscribed the most with 60%, non-institutional investors (NII) have subscribed 22%, and qualified institutional buyers (QIBs) just 5%.

Grey Market Premium (GMP):

The IPO is currently showing a grey market premium (GMP) of Rs 11, suggesting an estimated listing price of Rs 122 per share, which is about 10% higher than the upper price band of Rs 111.

Anchor Investment:

Ahead of the IPO opening, the company raised Rs 58.19 crore from anchor investors, including Abakkus Diversified Alpha Fund, Viney Growth Fund, Swyom India Alpha Fund, Sunrise Investment Trust, and Rajasthan Global Securities.

Indogulf Cropsciences IPO Details:

Indogulf Cropsciences is aiming to raise Rs 200 crore, which includes a fresh issue worth Rs 160 crore and an offer-for-sale (OFS) of 36.03 lakh shares by promoters Om Prakash Aggarwal (HUF) and Sanjay Aggarwal (HUF). The price band for the IPO is Rs 105-Rs 111 per share with a face value of Rs 10 each. The lot size is set at 135 shares. A retail investor needs at least Rs 14,175 to apply for one lot.

Indogulf Cropsciences IPO offers a total of 1,80,18,018 shares. Out of these, 90,09,009 shares (50%) are set aside for Qualified Institutional Buyers (QIBs). Another 27,02,703 shares (15%) are reserved for Non-Institutional Investors (NIIs), while 63,06,306 shares (35%) are meant for Retail Individual Investors (RIIs). In addition, 52,43,242 shares (29.10%) have been allocated to anchor investors.The IPO is managed by Systematix Corporate Services, with Bigshare Services as the registrar.

After the IPO subscription closes on June 30, the share allotment is expected to be finalised on Tuesday, July 1, 2025. Refunds will be processed on Wednesday, July 2, and shares will be credited to investors' demat accounts on the same day. The company's shares are likely to be listed on the BSE and NSE on Thursday, July 3, 2025.

Use of Funds:

Indogulf Cropsciences plans to use the money raised from the fresh issue for various business needs. About Rs 65 crore will be used to meet day-to-day working capital requirements, while Rs 34.12 crore will go towards repaying existing loans.

The company will also spend Rs 14 crore to set up a new dry flowable plant in Sonipat, Haryana. The remaining funds will be used for general corporate purposes.

Should You Subscribe?

"The company's financial growth has been slow, with a small rise in EBITDA margin from 9.64% to 10.03%, while PAT margin slightly fell from 5.41% to 5.11%. Revenue grew at 6% annually from FY22 to FY24. The IPO is priced low at 9 times PE and 1 times PB, compared to competitors' higher valuations," noted Canara Bank Securities.

Canara Bank Securities has recommended subscribing to the IPO for long-term gains but also advised caution because the company's business is seasonal.

Analysts at Anand Rathi Research have given a "Subscribe" rating to the IPO. They highlight the company's stable financials, integrated manufacturing capabilities, strong R&D, and diverse product portfolio. The brokerage notes the company's long-term growth potential, although it operates in a cyclical industry dependent on agricultural policies and shifts toward organic farming.

While Arihant Market has mentioned to avoid Indogulf Cropsciences IPO.

About the Company:

Founded in 1993, Indogulf Cropsciences manufactures and markets a wide range of crop protection products, plant nutrients, and biologicals in India. Its products come in multiple formulations such as powders, granules, and liquids, serving a variety of crops including cereals, pulses, oilseeds, and fruits.

The company has four manufacturing plants in Jammu & Kashmir and Haryana, covering about 20 acres. It sells products across 22 states and 3 Union Territories in India, with a large network of distributors and partners in 34 countries. Its flexible factories can make various products, and the company benefits from high industry regulations that limit competition.

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