Indogulf Cropsciences Limited, a manufacturer of crop protection products, is set to launch its IPO to raise ₹ 200 crore. The issue comprises a fresh issue of ₹ 160 crore and an offer for sale (OFS) worth ₹ 40 crore. With a diversified product portfolio and extensive distribution network, investors are keenly watching this IPO.
About Indogulf Cropsciences Limited
Incorporated in 1993, Indogulf Cropsciences Limited specializes in crop protection products, plant nutrients, and biologicals. The company operates four manufacturing facilities in Jammu & Kashmir and Haryana. It boasts a distribution network spanning 22 states and 3 union territories in India, along with presence in 34 international markets.
Its product portfolio includes:
- Plant Nutrients: Bio-simulants, specialty fertilizers, soil health enhancers.
- Crop Protection Products: Insecticides, fungicides, herbicides.
- Biologicals: Bio-fertilizers and bio-stimulants like Biogold and Indo Mychoriza.
Competitive Strengths
- Wide and diverse product portfolio.
- Strong sales network in India and abroad.
- Integrated and flexible manufacturing units.
- Experienced promoters and management team.
- High regulatory barriers in agrochemical industry.
Indogulf Cropsciences IPO Issue Details
- IPO Date: June 26, 2025 to June 30, 2025
- Listing Date: Tentatively July 3, 2025
- IPO Price Band: ₹ 105 to ₹ 111 per share
- Face Value: ₹ 10 each
- Market Lot: 135 shares
- Minimum Investment: ₹ 14,175 at floor price
- IPO Size: ₹ 200 crore
- Fresh Issue: ₹ 160 crore
- OFS: ₹ 40 crore
- Listing At: BSE, NSE
- Registrar: Bigshare Services Pvt Ltd
- Lead Manager: Systematix Corporate Services Ltd
Company Financials (in ₹ Crores)
| Period | Revenue | PAT | EBITDA | Net Worth | Total Assets |
|---|---|---|---|---|---|
| Mar 2022 | 490.23 | 26.36 | 47.24 | 180.51 | 413.59 |
| Mar 2023 | 552.19 | 22.42 | 49.04 | 203.25 | 517.51 |
| Mar 2024 | 555.79 | 28.23 | 55.74 | 231.65 | 542.25 |
| 9M ending Dec 2024 | 466.31 | 21.68 | 44.78 | 265.43 | 597.81 |
Key Metrics:
- ROE: 12.2%
- ROCE: 11.93%
- Debt/Equity: 0.67
- PAT Margin: 5.11%
- Price to Book Value: 1.13
Objects of the Issue
- Working capital requirements: ₹ 65 crore
- Debt repayment: ₹ 34.12 crore
- Setting up dry flowable plant: ₹ 14 crore
- General corporate purposes
P/E Ratio Compared to Peers
At the upper price band of ₹ 111, the IPO is valued at a P/E of 9.25x (post-issue EPS). This appears reasonably priced when compared to listed peers in the agrochemical segment.
As per the RHP:
- PI Industries Ltd has the highest P/E ratio of 52.76x.
- Rallis India Ltd has the lowest P/E ratio of 22.39x.
- Industry average P/E for comparable companies stands at 35.12x.
Thus, Indogulf Cropsciences is priced attractively compared to peers and industry averages.
Indogulf Cropsciences IPO GMP Today
As per market observers, the grey market premium (GMP) for Indogulf Cropsciences IPO is around ₹ 20-25, indicating positive investor sentiment. However, GMP is subject to volatility and should not be the sole basis for investment.
Reasons to Invest in Indogulf Cropsciences IPO
- Reasonable valuation compared to industry peers
- Strong financial performance and improving margins
- Wide product basket with growing demand in agriculture
- Experienced leadership and strong distribution channels
Risk Factors
- Agrochemical sector depends heavily on monsoon and government policies
- Raw material price volatility could affect margins
- Significant working capital requirements
- Any regulatory or environmental violations can impact business
How to Apply for Indogulf Cropsciences IPO?
Retail investors can apply via:
- UPI-enabled apps (like Zerodha, Groww, Paytm Money, etc.)
- Net banking ASBA process via your bank
Ensure the UPI mandate is approved by 5 PM on June 30, 2025 to avoid rejection.
Indogulf Cropsciences IPO FAQs
- What is the IPO date of Indogulf Cropsciences IPO?
- The IPO opens on June 26 and closes on June 30, 2025.
- What is the price band of Indogulf Cropsciences IPO?
- The IPO price band is ₹ 105 to ₹ 111 per share.
- What is the lot size and minimum investment?
- One lot has 135 shares. Minimum investment is ₹ 14,175.
- When will Indogulf Cropsciences IPO list?
- Tentative listing date is July 3, 2025 on BSE and NSE.
- Is it good to subscribe to Indogulf Cropsciences IPO?
- Considering strong fundamentals and reasonable valuation, it can be considered for medium to long-term investment.
- What is the GMP of Indogulf Cropsciences IPO?
- The GMP is around ₹ 20-25 as per grey market trends.
- Who is the lead manager of this IPO?
- Systematix Corporate Services Ltd.
Conclusion: Should You Invest in Indogulf Cropsciences IPO?
Indogulf Cropsciences IPO appears attractive with its competitive pricing, strong financials, and wide product reach. Though agrochemical sector risks remain, the company’s backward integration and R&D strength offer good long-term potential. High-risk investors looking for mid-cap exposure in the agri-sector may consider subscribing to this IPO.
Indogulf Cropsciences IPO Review Conclusion: Invest with a medium to long-term view.
Disclaimer: This IPO analysis is for information only. Please consult your financial advisor before investing.
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