Indogulf Cropsciences files IPO papers with SEBI

India-based Indogulf CropSciences Ltd. is a company that produces biologicals, plant nutrients, and crop protection products. 2019 will see us producing Spiromesifen technical at a minimum purity of 96.5%. We started producing pyrazosulfuron ethyl technical in 2018 and are among the first few Indian manufacturers to do so. Our product has a minimum purity of 97%. In addition, we are a developing exporter of biological products, plant nutrients, and crop protection, having sold our goods to more than 34 nations. We have meritoriously been acknowledged as a ‘Two Star Export House’ by the Government of India. Established in 1993, we primarily serve retail and institutional clients with an emphasis on increasing crop yield through three business verticals: biologicals, plant nutrients, and crop protection. We produce and distribute a wide variety of goods in all formulations that are currently on the market, including soluble granule (“SG”), flowable suspension (“FS”), suspension concentrate (“SC”), capsule suspension (“CS”), ultra-low volume (“ULV”), emulsion in water (“EW”), soluble granules (“WDG”), and more. These products can be supplied to our clients in powder, granules, or liquid form. Our goods are made to increase crop productivity while supporting environmentally friendly practices and sustainable farming.

Files for IPO: Indogulf Cropsciences Ltd:

The draft red herring prospectus for Indogulf Cropsciences Ltd.’s initial public offering, which includes a new issue valued at Rs 200 crore, was filed on Wednesday. An offer-for-sale (OFS) component of the IPO allows two of the company’s current shareholders to sell up to 38.5 lakh equity shares. The DRHP made no mention of the amount intended to be raised through the OFS.

Om Prakash Aggarwal and Sanjay Aggarwal are the selling shareholders; they will be parting with 15.4 lakh and 23.1 lakh equity shares, respectively. A portion of the new issue—50% for eligible institutional buyers, 35% for retail investors, and 15% for non-institutional investors—will be set aside for these buyers, per the DRHP. It further stated that Bigshare Services Pvt. will serve as the registrar and Systematix Corporate Services Ltd. as the book-running lead manager for the project.

The revenue of Indogulf Cropsciences:

Crop protection product manufacturer Indogulf Cropsciences reported a net profit of Rs. 28.2 crore and operational revenue of Rs. 552.2 crore for the fiscal year 2024. In the previous fiscal year, the company declared a revenue of Rs 549.6 crore and a net profit of Rs 22.4 crore.

Indogulf CropSciences will make use of the IPO fund:

The company intends to use all Rs 100 crore from the new issue to finance its working capital requirements, payback or partially prepay some outstanding loans, set aside Rs 40 crore, and invest Rs 14 crore in capital expenditures to build an internal dry flowable (DF) plant in Barwasni, District Sonipat, Haryana, in addition to using the remaining funds for general corporate purposes.

Conclusion: Through an initial public offering (IPO), Indogulf CropSciences is raising money so that Om Prakash and Sanjay Aggarwal can sell their shares and obtain working capital for the company’s continued expansion.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.