The Rs 200 crore initial public offering (IPO) of Indogulf Cropsciences opens for public subscription today, June 26. The issue will close its three-day bidding window on June 30. Let’s take a look at the key details that investors need to know before placing their bids.
Indogulf Cropsciences IPO: Size and structure
The IPO is a mix of fresh issuance and an offer for sale (OFS). The company is offering 1.44 crore new equity shares worth Rs 160 crore, while promoters and existing shareholders will offload 36.03 lakh shares amounting to Rs 40 crore. At the upper end of the price band, the total issue size comes to Rs 200 crore.
Indogulf Cropsciences IPO: Price band and lot size
The price band for this mainboard issue has been set at Rs 105 to Rs 111 per share. Retail investors can bid for a minimum of 135 shares, requiring a basic investment of Rs 14,175. For sNII and bNII investors, the minimum investment goes up significantly, with Rs 2.09 lakh and Rs 10.03 lakh respectively.
Indogulf Cropsciences IPO: GMP buzz
Ahead of the IPO, shares of Indogulf Cropsciences are trading at a grey market premium (GMP) of Rs 11. This translates to a potential 10% gain over the issue price. While GMP offers a snapshot of investor interest in the unlisted market, it is not an official indicator of listing price and can change rapidly.
Indogulf Cropsciences IPO: Anchor investors back the issue
Indogulf Cropsciences raised Rs 58.20 crore from anchor investors on June 25, a day before the IPO opened. The notable institutional names such as Abakkus Diversified Alpha Fund, Viney Growth Fund, Swyom India Alpha Fund, and Sunrise Investment Opportunities Fund participated in the anchor round.
Indogulf Cropsciences IPO: Who gets what
As per the issue structure, 50% of the shares are reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and the remaining 35% for Retail Individual Investors (RIIs). Allotment will be done proportionally within these categories.
Indogulf Cropsciences IPO: How the funds will be used
The proceeds from the fresh issue will go toward funding working capital needs, repaying outstanding loans, and setting up a new dry flowable plant in Haryana.
Indogulf Cropsciences IPO: Company profile and financials
The company was founded in 1993 and specialises in the homegrown agri-chemical which is involved in manufacturing crop protection products, plant nutrients, and biologicals.
Furthermore, the company also has a global presence and is currently exporting to over 34 countries. Talking of the financial performance of the company, it reported a revenue of Rs 555.79 crore and a profit after tax (PAT) of Rs 28 crore in FY24.