Indogulf Cropsciences’ Rs 200-crore initial public offering (IPO) will close for public subscription today. The issue has so far generated moderate success, having been subscribing 0.94 times. The IPO has received bids for 1.25 crore shares against 1.34 crore shares on offer.
The issue is priced in a band of ₹105-111 per share. The IPO comprises a fresh issue of ₹160 crore and an offer for sale of up to 36.03 lakh shares by promoters Om Prakash Aggarwal (HUF) and Sanjay Aggarwal (HUF).
The offer is being made through the book-building process, wherein not more than 50% of the net offer would be available for proportionate allocation to qualified institutional buyers, not less than 15% for allocation to non-institutional bidders, and not less than 35% to retail individual bidders. The market lot is 135 shares.
While the QIB portion was bid 0.05 times, retail investors were relatively enthusiastic, subscribing 1.55 times. The quota for NIIs was subscribed 0.85 times, while the employee portion (6.38 lakh shares) was bid 0.15 times.
anchor investors
Indogulf Crop Sciences raised over ₹58 crore from anchor investors on Wednesday as part of the IPO process. Sunil Singhania-led Abakkus Asset Manager, Viney Growth Fund, Swyom India Alpha Fund, Sunrise Investment Trust—Sunrise Investment Opportunities Fund, and Rajasthan Global Securities were allotted shares in the anchor round. The company has allocated 52.43 lakh shares to five entities at ₹111 per equity share, aggregating to a deal value of ₹58.20 crore.
usage of funds
The proceeds from the fresh issue totalling ₹65 crore will be used to fund working capital requirements, ₹34.12 crore for debt repayment, ₹14 crore for capital expenditure, and general corporate purposes.
Indogulf Cropsciences, which began operations in 1993, manufactures crop protection products, plant nutrients, and biologicals in India. It manufactures and markets an extensive range of products in all types of available formulations such as water-dispersible granules, suspension concentrate, capsule suspension, ultra-low volume, emulsion in water, soluble granules, flowable suspension, etc., which can be in powder, granule and liquid form, and catering to a broad spectrum of crops, including cereals, pulses and oilseeds, fibre crops, plantations, and fruits and vegetables.
The company’s key customers include Krishi Rasayan Exports Pvt Ltd, Delhi; Parijat Industries (India) Pvt Ltd, Delhi; BR Agrotech Private Limited, Delhi; Crystal Crop Protection Limited, Delhi; and Asasiat of Development for Agric & Trade Co., UAE. It has also established long-term relationships with suppliers, including Coromandel International Limited, GSP Crop Science Private Ltd, Gujarat, Dagro Chemical (Changzhou) Co., Ltd., China, Hubei Benxing Supply Chain Management Co., Ltd., China, and MaxxGro Agrology Private Ltd., Delhi.
At present, it operates four manufacturing facilities in Samba, Jammu and Kashmir: Nathupur—I, Haryana; Nathupur—II, Haryana; and Barwasni, Haryana. It also has two subsidiaries, Indogulf Cropsciences Australia Pty Ltd in Sydney, Australia, and Abhiprakash Globus Pvt Ltd in Delhi.