Upcoming IPO: Delhi-based Indogulf Cropsciences gets Sebi nod for IPO

Upcoming IPO: Indogulf Cropsciences Limited, headquartered in Delhi, has been issued final observation by the Securities and Exchange Board of India (SEBI), allowing them to raise up to ₹200 crore through an initial public offering (IPO). The company submitted its IPO documents to SEBI on September 25, 2024.

Indogulf Cropsciences commenced its operations in 1993, focusing on three business sectors: crop protection, plant nutrients, and biological products, providing solutions to both retail and institutional clients aimed at boosting crop productivity.

Indogulf Cropsciences operates in three primary areas: Within Crop Protection, the brands include Farrate, Dominator, Corsa-808, Alkazar, and Bound Off, featuring technical products such as Abamectin Tech, B.P.M.C Tech, Chlorantraniliprole, Quizalofop, Spiromesifen, and Azoxystrobin Technical.

IPO details

The initial public offering (IPO) has a face value of ₹10 for each equity share and comprises a fresh issue of up to ₹200 crore alongside an offer for sale of up to 38,54,840 equity shares from selling shareholders. Additionally, the offer includes a reservation for subscriptions aimed at eligible employees.

The offer for sale comprises a maximum of 15,40,960 equity shares from Om Prakash Aggarwal (HUF) and a maximum of 23,13,880 equity shares from Sanjay Aggarwal (HUF). In discussion with the book-running lead managers, the company may opt for a pre-IPO placement of certain securities, which will not exceed 20% of the fresh issue size. Should this placement occur, the size of the fresh issue will be decreased accordingly.

The funds raised from the new issue, up to ₹100 crore, will be allocated for the company's working capital needs; ₹40 crore will be utilized for the repayment or prepayment, either fully or partially, of certain existing loans taken by the company; ₹14 crore will go towards capital expenditures to establish an in-house dry flowable (DF) plant in Barwasni, District Sonipat, Haryana; and the remaining amount will be used for general corporate purposes.

Systematix Corporate Services Limited serves as the sole book-running lead manager, while Bigshare Services Private Limited acts as the registrar for the offer.

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