Indogulf Cropsciences IPO: A Detailed Look
The initial public offering (IPO) of Indogulf Cropsciences, a Delhi-based agrochemical company, opened for retail investors on June 26, 2025. The company aims to raise a total of ₹200 crore through this public offering.
Delhi-based agrochemical company Indogulf Cropsciences’ IPO opened today, June 26, 2025, for retail investors. The company plans to raise approximately ₹200 million through this public offering. The IPO is generating positive market sentiment, with shares trading at a premium in the grey market, and brokerage firms and experts are advising subscription. This article delves into the details of this IPO and whether it could be beneficial for investors.
Fundraising Through New and Existing Shares
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Indogulf Cropsciences intends to raise a total of ₹200 crore through its IPO. The funds will be utilized through the issuance of new shares and by existing shareholders selling a portion of their holdings. The company plans to invest this capital in business expansion, debt repayment, and the establishment of a new plant in Sonipat, Haryana.
Anchor Investor Support
Prior to the IPO’s public launch, the company has already secured ₹58.19 crore from anchor investors. Approximately 52.5 million shares have been allocated to anchor investors at a rate of ₹111 per share. Key investors involved include Abkcus Diversified Alpha Fund, Vini Growth Fund, Swyom India Alpha Fund, SunRise Investment Trust, and Rajasthan Global Securities. This demonstrates investor confidence in the company.
Strong Response in the Grey Market
Shares of Indogulf Cropsciences are currently trading in the grey market at ₹122 per share, prior to the IPO’s opening. This is approximately 11 rupees above the upper price band of ₹111, indicating a premium of around 9.9 percent. This signals b investor confidence in the issue.
Minimum Investment and Subscription Period
The IPO will be open for subscription from June 26 to June 30, 2025. The price band has been fixed at ₹105 to ₹111 per share. A lot consists of 135 shares, meaning a retail investor will need to invest a minimum of ₹14,175. Retail investors can apply for a maximum of 14 lots, or up to 1,890 shares.
Allotment and Listing Dates
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Share allotment is expected to be completed on July 1, 2025, following the IPO’s closure. Subsequently, the company’s shares will be listed on the BSE and NSE, India’s two major stock exchanges, on July 3, 2025. Market analysts anticipate potential price gains during the listing period as well.
Company’s Preparation for Business Expansion
The company’s red herring prospectus details its planned use of the IPO proceeds. Approximately ₹65 crore will be allocated to working capital, ₹34.12 crore to debt repayment, and ₹14 crore to the establishment of a new dry formulation plant in Sonipat, Haryana. The remaining funds will be used for general corporate needs.
Brokerage House Report
Anand Rathi Research has advised ‘subscribe’ to this IPO. The report notes that the company’s valuation is reasonable, with the IPO priced at 24.6 times the price-to-earnings ratio. Following the IPO, the company’s potential market capitalization is estimated at approximately ₹701.5 crore. The company’s strengths include its backward-integrated manufacturing facility, focus on R&D, b distribution network, and diverse product portfolio, making it a potentially good long-term investment.
Established in the Agro-Chemical Sector
Indogulf Cropsciences was established in 1993 and specializes in producing crop protection products, plant nutrition solutions, and organic products. Its products, available in powder, liquid, and granular forms, are used in wheat, rice, pulses, oilseeds, cotton, horticulture, and vegetable farming. The company maintains a b distribution network in rural India, establishing a distinct brand identity within the farmer community.
Business Linked to Government Policy
While the company’s financial position and prospects appear b, there are also potential risks involved. The agrochemical sector is directly influenced by monsoon patterns, crop quality, and government policies. Adverse weather conditions or policy changes could impact the company’s business. Furthermore, fluctuations in raw material prices from international markets could affect profitability.
