Upcoming IPO: Indogulf Cropsciences secures green light from Sebi; details

Crop protection products, plant nutrients, and biologicals manufacturing company Indogulf Cropsciences is all set to go public as the company has received final observation from the capital markets regulator, Securities and Exchange Board of India (Sebi), to raise funds through an initial public offering (IPO).

 

Indogulf Cropsciences had filed its IPO papers with Sebi on September 25, 2024.

 

Indogulf Cropsciences IPO comprises a fresh issue of up to Rs 200 crore, and an offer for sale (OFS) with shareholders divesting up to 38,54,840 equity shares of face value Rs 10 apiece. The OFS consists of up to 15,40,960 equity shares by Om Prakash Aggarwal (HUF) and up to 23,13,880 equity shares by Sanjay Aggarwal (HUF). "The price band and the minimum bid lot will be decided by our company in consultation with the BRLM," Indogulf Cropsciences said in its DRHP.

 

The equity shares offered through the IPO are proposed to be listed on the BSE and NSE.

 

Bigshare Services serves as the registrar to the offer. Systematix Corporate Services is the sole book-running lead manager for the public offering.

 

"The company, in consultation with the book-running lead managers, may consider a pre-IPO placement of specified securities, which shall not exceed 20 per cent of the size of the fresh issue. If such a placement is completed, the fresh issue size will be reduced," said the company in its Draft Red Herring Prospectus (DRHP).

 

The company will not receive any proceeds from the OFS. According to the DRHP, the selling shareholders will be entitled to their respective portion of the proceeds from the Offer for Sale after deducting their proportion of offer expenses and relevant taxes thereon.

 

Indogulf Cropsciences, however, intends to utilise the proceeds from the fresh issue for funding working capital requirements, and for repayment/prepayment, in full or in part, of certain outstanding borrowings availed by them. The company will further use the proceeds for capital expenditure, including setting up an in-house dry flowable (DF) plant at Barwasni, Sonipat, Haryana, as well as for general corporate purposes.

 

Indogulf Cropsciences is engaged in the business of manufacturing crop protection products, plant nutrients, and biologicals in India. It is also one of the first indigenous manufacturers of Pyrazosulfuron Ethyl technical (Source: CareEdge Report), which commenced production in 2018. Indogulf Cropsciences began its operations in 1993 and primarily operates under three business verticals: crop protection, plant nutrients, and biologicals, catering to retail and institutional customers focused on improving crop yield.