Indogulf Cropsciences IPO Day 3: Issue booked over 13x, GMP falls; check allotment date

The initial public offering (IPO) of Indogulf Cropsciences saw a decent bidding interest from the investors during the third and final day of the bidding process from all the categories of the investors. The issue was booked nearly 40 per cent on the first day and ended day two with around 93 per cent times subscription.

Indogulf Cropsciences is selling its shares in the price band of Rs 105-111 apiece. Investors can apply for a minimum of 135 shares and its multiples thereafter. It is looking to raise 200 crore via IPO, which includes a fresh share sale of Rs 160 and an offer-for-sale (OFS) of up to 36.03 lakh shares worth Rs 40 crore.

According to the data, the investors made bids for 17,38,30,995 equity shares, or 13.01 times, compared to the 1,33,65,710 equity shares offered for the subscription by 2.40 pm on Monday, June 30, 2025. The bidding for the issue, which kicked-off on Thursday, June 26, shall conclude today.

The allocation for qualified institutional bidders (QIBs) was subscribed 8.08 times, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 29.40 times. The quota set aside for retail investors was booked 9.96 times at the same time. Employee portion was booked only 82 per cent.

Incorporated in 1993, New Delhi-based Indogulf Cropsciences is engaged in manufacturing crop protection products, plant nutrients, and biologicals in India. It manufactures Spiromesifen technical with 96.5 per cent purity in 2019 and is one of the first indigenous manufacturers of Pyrazosulfuron Ethyl technical with 97 per cent purity in India.

The grey market premium (GMP) of Indogulf Cropsciences has seen a some correction on the third day on the amid a decent bidding. Last heard, the company was commanding a premium of Rs 12-15 per share in the unofficial market, suggesting a 11-14 per cent listing gains for the investors. The GMP stood around Rs 17 a day ago.

Analysts remained mostly positive on the issue on the back of its diversified product range, pan India network, backward integration, strong R&D capabilities and experienced management. However, under-utilized capacity, payment default and dependence of imports for raw material is weighing on the market sentiments.

Indogulf Cropsciences Limited is a dominant player in India’s pesticide industry, strategically positioned for substantial growth driven by industry expansion and supportive government initiatives. The company also plans to expand its sales and distribution network and obtain foreign registrations to broaden markets reach, said Master Capital Trust.

"It intends to expand its existing production capacities to facilitate cost efficiency and continue to leverage its ability to launch new products to increase revenues and market share in target markets. Investors looking to invest can invest in the IPO for the long term," it added.

For the nine-months ended on December 31, 2024, Indogulf Cropsciences reported a net profit of Rs 21.68 crore with a revenue of Rs 466.31 crore. The company clocked a net profit of Rs 28.23 crore with a revenue of Rs 555.79 crore for financial year 2023-24. The company shall command a market capitalization more than Rs 701.54 crore.

Indogulf Cropsciences has reserved 50 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of allocation. Remaining 35 per cent of the offer shall be allocated towards retail investors of the issue.

Nuvama Wealth Management and Motilal Oswal Investment Advisors are the book running lead managers of the Sambhv Steel Tubes IPO, while Kfin Technologies is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE on Wednesday, July 02.

Indogulf Cropsciences will continue to launch new products in order to increase revenues and market share in the targeted market backed by R&D support. It will be reducing is Long term borrowings from the IPO proceeds which will boost its EPS in the coming quarters, said Prithvi Finmart.

"The current capacity utilization is 51 per cent and has expansion plans for the future and the management is gearing up for the upcoming kharif season, which is the main season for the company, and is expected to grow in the coming quarters. From the valuation point of view, the company is available at a discounted price compared to its peers," it added with a 'subscribe' rating.

Systematix Corporate Services is the book-running lead manager of the Indogulf Cropsciences IPO, while Bigshare Services is the registrar for the issue. Allotment shall be finalized by Tuesday, July 1 and shares of the company shall be listed on both NSE and BSE with Thursday, July 3 as the tentative date of listing.