Delhi-Based Indogulf Cropsciences Files DRHP For Rs 200 Cr IPO

The Securities and Exchange Board of India (SEBI), the market regulator, has approved the draft red herring prospectus (DRHP) of Indogulf Cropsciences Limited, an Indian maker of biologicals, plant nutrients, and crop protection products for the book-building process of initial public offering (IPO). An offer for sale (OFS) of shareholders to sell up to 38,54,840 equity shares and a fresh issue of up to Rs 200 crore comprise the IPO, which has a face value of Rs 10 per equity share. Up to 15,40,960 equity shares from Om Prakash Aggarwal (HUF) and up to 23,13,880 equity shares from Sanjay Aggarwal (HUF) make up the OFS segment. For eligible employees, the IPO additionally comprises a subscription allocation.

Of the total offer, not less than 15% will be made available to non-institutional investors, not less than 35% will be made available to retail individual investors, and not more than 50% will be available for allocation on a proportionate basis to qualified institutional buyers.

The company's working capital needs will be met with up to Rs 100 crore from the proceeds of the fresh issue; some outstanding borrowings will be repaid or partly prepayment with up to Rs 40 crore; capital expenditures to establish an in-house dry flowable (DF) plant in Barwasni, District Sonipat, Haryana, totalling Rs 14 crore; and other corporate purposes will be covered.

From Rs 549.66 crore in fiscal 2023 to Rs 552.23 crore in fiscal 2024, Indogulf Cropsciences' revenue from operations grew. From Rs 22.42 crore for the FY23 to Rs 28.23 crore for the FY24, profit after taxes climbed by 25.91%. Bigshare Services Private Limited is the offer registrar, and Systematix Corporate Services Limited is the only book-running lead manager of Indogulf Cropsciences IPO.

In order to improve agricultural production, Indogulf Cropsciences started out in 1993 by delivering solutions to retail and institutional clients in three business segments: plant nutrients, biological products, and crop protection. As per the CareEdge Report cited in the DRHP, Indogulf Cropsciences has made a name for itself in the agricultural protection, plant nutrition, and biological products export markets. The Indian government has designated it as a "Two Star Export House."

Currently, Indogulf Cropsciences has four production facilities: one in Samba, Jammu and Kashmir; two in Nathupur, Haryana; and one in Barwasni, Haryana. The company possesses two fully-owned subsidiaries: Indogulf Cropsciences Australia Pty Ltd, located in Sydney, Australia, and Abhiprakash Globus Private Limited, situated in Delhi. In addition to over 34 countries worldwide, the firm operates a sales and distribution network in 22 states and 3 Union Territories in India. It has 5,772 active domestic distributors (B2C) and 169 institutional (B2B) clients as of August 31, 2024. It is backed by 17 stock depots and 6 sales/branch offices. It has 129 worldwide business partners and effectively distributes its products across more than 34 countries. The company's primary customers include Asasiat of Development for Agric & Trade Co., UAE; Krishi Rasayan Exports Private Limited, Delhi; Parijat Industries (India) Private Limited, Delhi; BR Agrotech Private Limited, Delhi; and Crystal Crop Protection Limited, Delhi. Reputable suppliers for Indogulf Cropsciences comprise Hubei Benxing Supply Chain Management Co. Ltd., China; Dagro Chemical (Changzhou) Co. Ltd., China; GSP Crop Science Private Limited, Gujarat; and MaxxGro Agrology Private Limited, Delhi.