Indogulf Cropsciences set to launch ₹200 crore IPO on June 26; check key details

Indogulf Cropsciences, a leading agrochemicals company which manufacturers crop protection products, plant nutrients and biologicals will launch its ₹200 crore initial public offering (IPO) on June 26. The IPO will remain open for subscription till June 30. The IPO is a combination of a fresh issue and an offer-for-sale of a total of 1.80 crore shares.

Incorporated in 1993, Indogulf Cropsciences products helps improve crop yield. The company sells its diverse product range in powder, granules and liquid form to its retail and institutional customers.

The company has successfully expanded its product portfolio from 198 products in FY22 to 262 products as of December 31, 2024, spanning across three business verticals, namely crop protection, plant nutrients and biologicals.

The company operates four ISO-certified manufacturing facilities located across Jammu & Kashmir and Haryana, spread over approximately 20 acres. It holds 225 trademarks, 8 copyrights, and 6 design registrations for its logo and branded products. Additionally, the company has 3 packaging patents that enhance product quality, safety, and sustainability.

Indogulf Cropsciences IPO details

Indogulf Cropsciences IPO aims to raise ₹200 crore through its public issue. The IPO is a combination of a fresh issue and offer-for-sale. The fresh issue consists of 1.4 crore shares worth ₹160 crore, while the offer for sale component is of 36 lakh shares worth 40 crore.

The company has fixed the price band of the issue at ₹105 to ₹111 per share. The lot size, or the minimum bid quantity to apply for the issue, is 135 shares. This equates to a minimum investment amount of ₹14,985 per lot at the upper end of the price band for retail investors.

Indogulf Cropsciences has appointed Systematix Corporate Services as book-running lead managers of the IPO, while Bigshare Services Pvt Ltd is the registrar for the issue.

Indogulf Cropsciences IPO: Important dates

Indogulf Cropsciences IPO will remain open for bidding from 26 to 30 June. After the bidding is closed, the allotment of shares is expected to be finalised on Tuesday, July 1.

Successful bidders can expect the shares to be credited to their demat accounts by July 2, with others receiving refunds on the same day. Indogulf Cropsciences shares are scheduled to list on the BSE and NSE on July 3.

Indogulf Cropsciences IPO objective

The money raised from the IPO will be used towards the following objectives:

• Working capital requirements: The company will use ₹65 crore towards the working capital requirement of the company.
• Repayment of borrowings: The company will use ₹34.10 crore to repay borrowings
• Capital expenditure: The company will use ₹14 crore to set up an in-house dry flowable (DF) plant at Barwasni, Haryana.
• General corporate purposes: Part of the IPO proceeds will be used for general corporate purposes and strategic initiatives.

Financial snapshot

Strengths and opportunities

• Diversified product portfolio: The company offers 262 products across crop protection, plant nutrients, and biologicals as of Dec 31, 2024, up from 198 in FY22. This diversified mix reduces product concentration risk and enables stable revenues across seasons and geographies.
• Widespread distribution network: With 6,916 working domestic distributors (B2C), 192 institutional B2B partners, and 143 overseas partners across 34 countries, the company has a strong distribution backbone. This broad reach enhances market penetration and export scalability.

Risks and threats

• High supplier concentration risk: Raw materials made up 74.75% of total expenses and 67.61% of gross revenue from operation for the 9MFY25, with the top 10 suppliers accounting for 26.10%. Disruptions or delays from these suppliers could impact production timelines and profitability.
• High capital requirement and financing risk: The company incurred ₹31.65 crore in capex and has ₹206.30 crore in total borrowings as of Dec 31, 2024. Its capital-intensive operations may require additional financing to support growth. Failure to secure timely or affordable funding could impact expansion plans, cash flows, and financial stability.