Indogulf Cropsciences Limited Gets SEBI Approval for IPO
Indogulf Cropsciences Ltd, a Delhi-based company specializing in crop protection, plant nutrients, and biological products, has received final approval from SEBI for an initial public offering (IPO). The company intends to raise up to ₹200 crore through this IPO. Indogulf Cropsciences submitted its IPO documents to SEBI on September 25, 2024. The company was founded in 1993 and focuses on providing solutions to both retail and institutional clients to boost crop productivity.
Indogulf Cropsciences Limited IPO Structure and Details
The IPO includes a fresh issue of up to ₹200 crore, along with an offer for sale (OFS) of up to 3,854,840 equity shares with a face value of ₹10 each. The OFS comprises a maximum of 1,540,960 equity shares from Om Prakash Aggarwal (HUF) and a maximum of 2,313,880 equity shares from Sanjay Aggarwal (HUF). The company will not receive any proceeds from the OFS. The price band and minimum bid lot will be determined by the company in consultation with the book-running lead manager. The equity shares are proposed to be listed on the BSE and NSE.
Use of Funds
Indogulf Cropsciences plans to use the funds raised from the fresh issue for several purposes. Up to ₹100 crore is designated for the company's working capital needs. Approximately ₹40 crore will be used for repayment or prepayment of existing loans. A further ₹14 crore is allocated for capital expenditures to establish an in-house dry flowable (DF) plant in Barwasni, District Sonipat, Haryana. The remaining funds will be used for general corporate purposes. The company may also consider a pre-IPO placement of certain securities not exceeding 20% of the fresh issue size. If such a placement occurs, the size of the fresh issue will be reduced.
Company Operations and Products
Indogulf Cropsciences operates in three primary business areas: crop protection, plant nutrients, and biological products. Within crop protection, they offer brands like Farrate, Dominator, Corsa-808, Alkazar, and Bound Off. They produce technical products such as Abamectin Tech, B.P.M.C Tech, Chlorantraniliprole, Quizalofop, Spiromesifen, and Azoxystrobin Technical. Indogulf Cropsciences is one of the first indigenous manufacturers of Pyrazosulfuron Ethyl technical, with production commencing in 2018.
Book Running Lead Manager and Registrar
Systematix Corporate Services Limited is the sole book-running lead manager for the IPO. Bigshare Services Private Limited acts as the registrar for the offer.
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