Indogulf Cropsciences IPO subscribed 7 times on final day; GMP signals 13% listing pop

Economic Times

13 hours ago

The initial public offering (IPO) of agro-chemical firm Indogulf Cropsciences drew robust investor interest, with the issue subscribed 7 times as of 1:09 PM on Monday, the final day of bidding. The strong response was led by non-institutional investors (NIIs), while the grey market premium (GMP) climbed to Rs 14, indicating a potential upside of 12.6% over the upper end of the price band.
ADVERTISEMENT The IPO received bids for 9,10,38,600 shares against 1,33,65,710 shares on offer, indicating a subscription of 7 times overall. Non-institutional investors emerged as the most enthusiastic category, subscribing to 15.88 times their allotted quota. Retail investors also showed considerable interest, with their portion subscribed 7.16 times. However, demand from qualified institutional buyers (QIBs) lagged behind, with just 36% of their quota taken up by early Monday afternoon.
On Day 3, Indogulf Cropsciences' last grey market premium (GMP) stood at Rs 14, as of Monday, June 30. Based on the IPO's upper price band of Rs 111, the estimated listing price was pegged at Rs 125, implying a 12.6% gain per share.
The GMP had previously moderated over the last two days. On Friday, shares were quoting at a premium of Rs 8–9, reflecting a 7% premium. On Thursday, the GMP was slightly stronger at Rs 10–11, indicating a 9% listing gain.
Offer details and timelines
Priced between Rs 105 and Rs 111 per share, the IPO opened for subscription on June 26 and closes today, June 30. The allotment is expected to be finalized on July 1, with listing likely on July 3 on both the BSE and NSE. The minimum lot size is 135 shares, amounting to Rs 14,985 at the upper end of the band.
Systematix Corporate Services is the book-running lead manager, and Bigshare Services is acting as the registrar to the issue.
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Company fundamentals
Established in 1993, Indogulf Cropsciences is a well-known name in the agro-chemical space, offering a diversified portfolio of crop protection products, plant nutrients, and biologicals. The company operates across 22 Indian states and 3 Union Territories, and exports to 34 countries.
ADVERTISEMENT It runs four manufacturing units—three in Haryana and one in Jammu & Kashmir—and employs 640 permanent staff. For FY24, the company reported a revenue of Rs 555.79 crore and a net profit of Rs 28.23 crore. It has maintained an EBITDA margin of over 10% and delivered a return on equity (ROE) of 12.2%.
IPO proceeds will be utilised for working capital needs, debt repayment, and the establishment of a new dry flowable formulation plant in Haryana.
ADVERTISEMENT With a seasoned management team, strong R&D capabilities, and a footprint in India's expanding agri-input market, the company is seen as a promising long-term bet in the chemical and agri-tech space.
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