IPO Details
Issue Date
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Investment/lot
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Price Range
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Lot Size
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IPO Size
N/A
Schedule of Indogulf Cropsciences Ltd IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
Issue Highlights
Initial public offering of up to [] equity shares of face value of Rs. 10 each (equity shares) of Indogulf Cropsciences Limited (company or issuer) for cash at a price of Rs. [] per equity share (including a share premium of Rs. [] per equity share) (offer price) aggregating up to [] million (the offer) comprising a fresh issue of up to [] equity shares aggregating up to Rs. 200.00 crores by the company (fresh issue) and an offer for sale of up to 3,854,840 equity shares aggregating up to Rs. [] crores (offered shares) by the selling shareholders (offer for sale, and together with fresh issue, the offer), comprising up to 1,540,960 equity shares aggregating up to Rs. [] crores by Om Prakash Aggarwal (HUF) and up to 2,313,880 equity shares aggregating up to Rs. [] crores by Sanjay Aggarwal (HUF) (selling shareholders). The offer shall constitute []% of the post-offer paid up equity share capital of the company. The offer includes a reservation of up to [] equity shares of face value Rs. 10 each, aggregating up to Rs. [] crores (constituting up to []% of the post-offer paid-up equity share capital, for subscription by eligible employees (employee reservation portion). The offer less the employee reservation portion is hereinafter referred to as the net offer. The offer and the net offer shall constitute []% and []%, respectively, of the post-offer paid-up equity share capital of the company. The company may, in consultation with the brlm, consider a pre-ipo placement of specified securities, as may be permitted under the applicable law, aggregating up to Rs. [] crores, with the roc. The pre-ipo placement, if undertaken, will be at a price to be decided by the company, in consultation with the brlm. If the pre-ipo placement is completed, the amount raised pursuant to the pre-ipo placement will be reduced from the general corporate purposes portion of the fresh issue, subject to compliance with rule 19(2)(b) of the securities contracts (regulation) rules, 1957, as amended. The pre-ipo placement, if undertaken, shall not exceed 20% of the size of the fresh issue. Prior to the completion of the offer, the company shall appropriately intimate the subscribers to the pre-ipo placement, prior to allotment pursuant to the pre-ipo placement, that there is no guarantee that the company will proceed with the offer or the offer will be successful and result in listing of the equity shares on the stock exchanges. Further, relevant disclosures in relation to such intimation to the subscribers to the pre-ipo placement (if undertaken) shall be appropriately made in the relevant sections of the red herring prospectus and prospectus. The face value of the equity shares is Rs. 10 each. The offer price is [] times the face value of the equity shares. The price band and the minimum bid lot will be decided by the company.
About Indogulf Cropsciences Limited IPO
Indogulf Cropsciences Limited IPO is an IPO of TBA. It consists of an offer for sale of up to 3,854,840 equity shares and a fresh issue aggregating up to ₹200 crores. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA, and the initiation of refunds will take place on TBA.
Objective of Indogulf Cropsciences Limited 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.
Indogulf Cropsciences Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | Up to 3,854,840 equity shares |
Fresh Issue | Aggregating up to ₹200 crores |
EPS (₹) For the year ended March 31, 2024 | 12.00 |
Indogulf Cropsciences Limited IPO Share offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs Share Offered | Not more than 50% of the Issue |
Non-Institutional Investors (NIIs) | Not less than 15% of the Issue |
Retail Individual Investors | Not less than 35% of the Issue |
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.
Strengths of Indogulf Cropsciences Limited IPO
Diversified product portfolio and specialised products across all three verticals.
They have, over the span of three decades, diversified their product portfolio and have grown into a multi-product manufacturer of crop protection, plant nutrients and biologicals in India. Their product portfolio has expanded from 198 products in fiscal 2022 to 259 products in fiscal 2024, consisting of products that they manufacture using in-house innovative processes, which enable them to cater to a wide range of customers in domestic and international markets.
Established distribution network in India and abroad.
They have a pan-India sales and dealer presence in 22 states and three Union Territories in India and over 34 countries outside India with a dedicated sales and development force that provides customer service and undertakes product promotion. As on June 30, 2024, their marketing network had 169 institutional business partners (b2b), 5,772 working domestic distributors (b2c), supported by 17 stock depots and six ales/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.
Strong R&D and product development capabilities
They have substantial experience in undertaking R&D activities as part of their manufacturing operations. Their R&D laboratory is located at their Nathupur, Haryana facility with modern research and development infrastructure. Their R&D laboratory has received a certificate of accreditation from the NABL which has been assessed and accredited in accordance with the standard ISO/IEC 17025:2017. They have been able to diversify their product range mainly due to their R&D and product development capabilities.
Risks of Indogulf Cropsciences Limited IPO
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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.
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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.
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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.
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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.
Indogulf Cropsciences Limited IPO Financials
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Peers Comparison
| Parameter | Indogulf Cropsciences Limited | Aries Agro Ltd | Basant Agro Tech India Ltd |
|---|---|---|---|
Revenue from Operations for the year ended March 31, 2024 (₹ in crores) | 552.234 | 516.458 | 404.752 |
P/E | NA | 17.47 | 44.58 |
EPS (Basic) (₹) | 12 | 14.94 | 0.43 |
Return on Net Worth (%) | 12.19 | 7.07 | 2.27 |
NAV per share (₹) | 97.98 | 200.20 | 19.22 |
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.
Indogulf Cropsciences Limited Company Profit & Loss
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Revenue from operations (₹ crores) | 487.21 | 549.656 | 552.234 |
Profit Before Tax (₹ crores) | 35.632 | 30.314 | 36.042 |
Net profit / (loss) (₹ crores) | 26.363 | 22.423 | 28.233 |
EBITDA (₹ crores) | 47.243 | 49.04 | 55.744 |
EPS (₹) | 11.21 | 9.53 | 12 |
Indogulf Cropsciences Limited Cash Flow
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Profit before tax (₹ crores) | 35.632 | 30.314 | 36.042 |
Net Cash from Operating Activities (₹ crores) | 7.005 | 57.010 | 53.340 |
Net Cash from Investing Activities (₹ crores) | 10.015 | 19.294 | 5.225 |
Net Cash from Financing Activities (₹ crores) | 16.094 | 75.198 | 48.885 |
Cash and Cash Equivalents (₹ crores) | 4.793 | 3.687 | 2.916 |
How To Check Allotment Status of Indogulf Cropsciences Limited 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, Bigshare Services Private Limited. 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 (Equity in this case)
- Select the issue name from the drop-down. The issue name is the company’s name, which is Indogulf Cropsciences Limited
- 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
Follow these steps to know the allotment status on the registrar’s website:
- Visit the Bigshare Services Private Limited website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select Indogulf Cropsciences Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
Indogulf Cropsciences Ltd IPO FAQs
What is the Indogulf Cropsciences Limited IPO?
The Indogulf Cropsciences Limited IPO has an issue size of TBA. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for Indogulf Cropsciences Limited IPO?
Bigshare Services Private Limited is the registrar for this IPO.
Where can I read more about Indogulf Cropsciences Limited business?
You may read more about Indogulf Cropsciences Limited and its IPO from the company’s draft red herring prospectus (DRHP) here: (SEBI | Indogulf Cropsciences Limited - DRHP)
