Crystal Crop Protection files IPO papers with SEBI; seeks to raise ₹600 crore via fresh issue

Crystal Crop Protection IPO: Crop solutions company Crystal Crop Protection has filed preliminary papers with the market regulator, the Securities and Exchange Board of India (SEBI), to raise funds via an initial public offering.

The proposed IPO is a combination of fresh issuance of shares worth ₹600 crore and an offer for sale (OFS) of 7,405,387 shares, according to the draft red herring prospectus (DRHP).

Under the OFS, promoters Nand Kishore Aggarwal, Komal Aggarwal and Ankur Aggarwal, along with investors International Finance Corporation and FC Emerging Asia Fund, LP, will offload their stake.

The fresh issue proceeds will be used for debt repayment of the company and its material subsidiary Saffire Crop Science, funding inorganic growth through unidentified acquisitions and general corporate purposes.

"In addition, we expect to achieve the benefit of listing of the equity shares on the stock exchanges, enhancement of our company’s visibility and brand name amongst our existing and potential customers and creation of a public market for the equity shares in India," the company said in its DRHP.

About the company

Crystal Crop Protection, established in 1994, is a crop solutions company with seeds and agrochemicals at the core of its offerings.

Its diversified portfolio includes (i) products for crop protection like fungicides, herbicides, insecticides and natural crop solutions such as bio-protectants, bio-stimulants, plant growth regulators, liquid fertilisers and micronutrients and (ii) seeds for field crops, flowers and vegetable crops. The company's offerings are customised for domestic farmers through research and development (R&D).

"We have dedicated and strategic focus on R&D, which we consider integral to our ability to offer quality crop protection products and natural crop solutions and seeds for various crops. Our R&D teams focus on (i) developing novel formulations, based on our analysis of existing gaps in the industry and prevailing needs of our customers; and (ii) extensive breeding programs, leading to creation of renowned brands for our business verticals," the company said.