Indogulf Cropsciences IPO

About Indogulf Cropsciences IPO

Indogulf Cropsciences Limited IPO is an IPO of ₹200 crores. It consists of an offer for sale of up to 3,854,840 equity shares aggregating up to ₹40 crores and a fresh issue aggregating up to ₹160 crores. The lot size of the IPO is 135. The price band of the IPO is between ₹105 and ₹111.

The shares will be allotted on July 1, 2025. The credit of shares to the demat account will take place on July 2, 2025 and the initiation of refunds will take place on July 2, 2025.

Objective of Indogulf Cropsciences IPO

• Funding working capital requirements of the company.
• Repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the company.
• Capital expenditure of the company for setting up an in-house dry flowable (DF) plant at Barwasni, Sonipat, Haryana.
• General corporate purposes.

Industry Outlook

The Indian crop protection & nutrition market is poised for growth due to the growing demand for food products. The demand has grown substantially over the last decade on account of increased agricultural output, a growing population, and favourable government initiatives such as Make in India and Aatmanirbhar Bharat Abhiyan. Despite challenges such as a slowdown in global demand, crop failures due to erratic monsoons, high energy costs, geopolitical tensions, etc., consumption of nutrients and crop protection chemicals has increased in 2023. During 2019-2023, the market size of the global crop protection & nutrition industry grew at a CAGR of 7.7% on account of continuous growth in agricultural activities.

According to the World Trade Organization, India emerged as the second-largest exporter of agrochemicals globally in 2022. Also, the global manufacturers have shifted their production to India from China post-COVID-19, providing an edge for India to act as a global manufacturing hub. Besides, various initiatives such as ‘Make in India’ and the Production Linked Incentive (PLI) scheme have been taken by the government to increase production capacities in the country.

Company Information

Indogulf Cropsciences Limited is engaged in the business of manufacturing crop protection products, plant nutrients, and biologicals in India. They began manufacturing Spiromesifen technical with a minimum purity of 96.5% in 2019. They are also one of the earliest indigenous manufacturers of Pyrazosulfuron Ethyl technical (Source: CareEdge Report), with a minimum purity of 97%. They commenced production in 2018. They are also a growing exporter of crop protection formulations, plant nutrients, and biological products, and they exported their products to over 34 countries. (Source: CareEdge Report) They have earned the distinction of being a Government of India recognised ‘Two Star Export House.’.

They manufacture and market an extensive range of products of all types of available formulations, such as water-dispersible granules (WDG), suspension concentrate (SC), capsule suspension (CS), ultra-low volume (ULV), emulsion in water (EW), soluble granule (SG), flowable suspension (FS), etc., which can be in powdered, granular, and liquid form to their customers. Their products are designed to improve crop yield while promoting sustainable agricultural and environmental stewardship.

They also provide contract manufacturing services that are customisable to meet the specific requirements and formulations requested by their clients and deliver tailored solutions.

Risks of Indogulf Cropsciences IPO

• Any shortfall in the supply of their components and raw materials or an increase in their components or raw materials costs, or other input costs, may adversely affect the pricing and supply of their products and have an adverse effect on their business, results of operations, and financial condition.

• The demand for their products in foreign countries is subject to international market conditions and regulatory risks that could adversely affect their business and results of operations.

• Their business is subject to climatic conditions and is cyclical in nature. Seasonal variations and unfavourable local and global weather patterns may have an adverse effect on their business, results of operations, and financial condition. Further, any change in government policies towards the agriculture sector or a reduction in subsidies and incentives provided to farmers could adversely affect their agrochemicals business and result in operations.

• Their operations may be adversely affected by the effects of health pandemics, civil disturbances, social unrest, hostilities or acts of terrorism, natural disasters such as extreme weather events, and other criminal activities.

Anchor Investor Information

The anchor investors shall bid on the anchor investor bidding date, i.e., one working day prior to the bid/offer opening date.

IPO Registrar and Book Running Lead Managers

Book running lead managers : Systematix Corporate Services Limited

Registrar for the IPO is Bigshare Services Private Limited

Business Model

The company earns its revenue through the following sources:

• They manufacture and market products such as biostimulants, biologicals, crop protection, public health and veterinary, and plant supplements.

Company Growth Trajectory

The revenue from operations grew from ₹487.210 crores in FY 2022 to ₹552.234 crores in FY24. The PAT also grew from ₹26.363 crores to ₹28.233 crores in the same period, thus confirming a steady growth for the company.

The operating profit margins fluctuate for companies in these industries. While a few companies have witnessed significant fluctuations in their margins, Indogulf Cropsciences has consistently remained stable over the past four years. This steady improvement is driven by a gradual rise in revenue and increased operational efficiency.

Company Market Position

As of August 31, 2024, their marketing network had 169 institutional business partners (B2B), 5,772 working domestic distributors (B2C), supported by 17 stock depots and six sales/branch offices supporting the distribution of their products in India, and 129 overseas business partners present outside India, optimising their product distribution in over 34 countries.

They are also one of the first few indigenous manufacturers of Pyrazosulfuron Ethyl technical (Source: CareEdge Report), with a minimum purity of 97% indigenously in India, and commenced production in 2018.

How to Check Allotment Status of Dr. Agarwal’s Health Care IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Link Intime India Private Ltd. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Dr. Agarwal Health Care Ltd
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

To check the status on the registrar’s website:

• Visit the website of Kfin Technologies Limited
• Choose ‘Public Issues’ from Investor Services dropdown
• Choose the name of the company from ‘Select Company’ dropdown
• Enter any of these — PAN Number, Application Number, DP/Client ID, Account Number / IFSC

Click on Submit to check the status

How to Apply for Indogulf Cropsciences IPO?

To apply for this IPO:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for
• Step 3: Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds
• Step 5: Approve Request: Your funds will be blocked once you approve the mandate request on your UPI