IPO Details
- Subscription Period: June 26–30, 2025 (tentative listing on July 3, 2025).
- Issue Size: ₹200 crore total, comprising a fresh issue of ₹160 crore (14.44 million shares) and an offer-for-sale of 3.603 million shares (up to ₹40 crore) by promoters Om Prakash Aggarwal and Sanjay Aggarwal.
- Price Band: ₹105–111 per share; lot size of 135 shares (min. investment ~₹14,985).
- Allocation: QIB 50%, NII 15%, Retail 35% of the public issue.
- Book Running Lead Manager: Systematix Corporate Services; Registrar: Bigshare Services Pvt Ltd.
About the Company
- Founded 1993 (as Jai Shree Rasayan Udyog, renamed Indogulf Cropsciences Ltd in 2015). Key promoters are Om Prakash Aggarwal (Chairman) and Sanjay Aggarwal (Managing Director).
- Product Lines: Crop protection chemicals (insecticides, fungicides, herbicides, plant growth regulators), specialty plant nutrients and fertilizers, and agricultural biologicals. Known for indigenous technicals like Spiromesifen (96.5% purity) and Pyrazosulfuron Ethyl (97% purity).
- Manufacturing Facilities: Four ISO-certified plants (formulations, technicals, fertilizers) in India – Samba (J&K) and Nathupur I, Nathupur II, Barwasni (Haryana), across ~20 acres.
- Distribution: Pan-India network covering 22 states and 3 Union Territories (via ~169 institutional partners and ~5,700 domestic distributors) plus export presence in 34 countries (with ~129 overseas partners).
- Employees: Approximately 640 permanent employees (as of Aug 31, 2024).
Financials
| Particulars (₹ In Cr) | 2024 (09) | 2023(09) | 2024 (12) | 2023 (12) | 2022 (12) |
| Revenue from Operations | 464.19 | 413.4 | 552.23 | 549.66 | 487.21 |
| Revenue Growth (%) | 12.29% | – | 0.47% | 12.82% | – |
| EBITDA | 44.78 | 34.01 | 55.74 | 49.04 | 47.24 |
| EBITDA Margin (%) | 9.65% | 8.23% | 10.09% | 8.92% | 9.70% |
| Net Profit for the period | 21.68 | 15.29 | 28.23 | 22.42 | 26.36 |
| Net Profit (%) as stated | 4.67% | 3.70% | 5.11% | 4.08% | 5.41% |
| EPS – Basic (₹) | 5.10^ | 6.50^ | 12 | 9.53 | 11.21 |
| RONW (%) | 8.17% | 6.99% | 12.19% | 11.03% | 14.60% |
| ROCE (%) | 8.07% | 7.27% | 11.93% | 10.12% | 13.81% |
| Net Worth | 265.43 | 218.7 | 231.65 | 203.25 | 180.51 |
| Total Borrowings | 206.3 | 145.98 | 154.56 | 189.22 | 101.38 |
| NAV (₹) | 54.41 | 92.5 | 97.98 | 85.96 | 76.35 |
| Debt to Equity | 0.78 | 0.67 | 0.67 | 0.93 | 0.56 |
| Post issue Share Capital | 63.2 | ||||
| FV | 10 | ||||
| IPO price | 111 | ||||
| EPS Fy24 | 4.47 | ||||
| PE | 24.85 | ||||
| EPS Fy25 (annualized) | 4.57 | ||||
| PE (annualized) | 24.27 | ||||
| Market cap in cr. | 702 | ||||
| Market cap / Sales | 1.70 |
Anchor Investors
The Indogulf Cropsciences IPO anchor investor allocation included five entities,. The top anchor investors and their respective allocations as a percentage of the anchor book are: Abakkus Diversified Alpha Fund (48.45%), Viney Growth Fund (25.77%), Swyom India Alpha Fund (8.59%), Sunrise Investment Trust – Sunrise Investment Opportunities Fund (8.59%), Rajasthan Global Securities Private Limited (8.59%)
Salient Points
- Use of Proceeds: Net IPO funds will repay debt (~₹34.1 crore), fund working capital (~₹65.0 crore), build a dry flowable (DF) plant (~₹14.0 crore) in Barwasni, Haryana, with the balance for general corporate needs.
- Revenue Split: FY24 revenues were ~95% crop protection products, ~4% plant nutrients and ~5% biologicals. Geographically, sales are primarily domestic with exports to 34 countries (company is a recognized “Two Star” export house).
- Growth Trends: Revenue grew modestly (~6–7% CAGR FY22–FY24), with profits fluctuating (higher in FY22 and FY24, dip in FY23). EBITDA margins have been ~9–10%, rising to ~10.1% in FY24.
- Financial Ratios: FY24 debt-to-equity ~0.67 (post-deal); RoE ~12.2%, RoCE ~11.9%. Return on net worth ~12%, reflecting steady asset turnover (7–8×).
- Strengths: Backward-integrated operations (in-house technicals and formulations), extensive distribution network, broad product portfolio, strong R&D (NABL-accredited lab, packaging patents), established brands (e.g. “Patang” brand) and experienced promoter family.
- Risks: Agrochemical business faces raw material price volatility and supplier concentration, stringent regulatory approvals, seasonal demand cycles, and working-capital intensity; these could pressure margins and require prudent balance sheet management.
Peers
| Companies | Revenue (In Cr.) | EBITDA Margin | PAT Margin | P/E | ROCE | MCap /sales | D/E |
| Indogulf Cropsciences (FY 24) | 552.23 | 10.09% | 5.11% | 24.85 | 11.93% | 1.7 | 0.67 |
| Indogulf Cropsciences (9.FY25) | 464.19 | 9.65% | 4.67% | 24.27 | 8.07% | ||
| Aries Agro (FY25) | 627 | 11.50% | 5.34% | 12.5 | 18.5% | 0.67 | 0.17 |
| Basant Agro Tech (FY 25) | 463 | 5.99% | 0.90% | 33.9 | 6.6% | 0.31 | 0.72 |
| Best Agrolife (FY25) | 1,814 | 11.00% | 3.85% | 11.2 | 12.9% | 0.43 | 0.63 |
| Bhagiradha Chemicals (FY25) | 440 | 8.39% | 3.15% | 276 | 5.2% | 8.69 | 0.13 |
| Dharmaj Crop (FY25) | 951 | 7.86% | 3.66% | 32 | 12.0% | 1.17 | 0.29 |
| Heranba Industries (FY25) | 1,410 | 6.95% | 0.16% | 546 | 4.4% | 0.87 | 0.41 |
| India Pesticides (FY25) | 829 | 14.60% | 10.20% | 30.2 | 13.1% | 3.07 | 0.06 |
GMP (Grey Market Premium)
Current grey market premium: ~₹11 per share (positive premium, ~10% above IPO price band) as per posts in SM.
Management Commentary
- Management highlights its R&D and technical strength – having pioneered key agrochemicals (e.g. Spiromesifen, Pyrazosulfuron Ethyl) with an accredited lab and patented packaging designs, it seeks to stay ahead of competition via innovation.
- They point to the Patang brand and extensive distribution (pan-India dealers and exports in 34 countries) as durable competitive advantages supporting volume growth.
- Expansion plans (in-house DF plant) aim to meet rising demand for specialized formulations. Promoters emphasize steady execution and scaling of integrated facilities, while remaining cautious on input cost inflation.
Final Views
- Thereare less chances that I will Subscribe to Indogulf Cropsciences IPO.
- +ve : Diversified product mix, backward integration, robust distribution and R&D pedigree – along with sector tailwinds suggest positive medium-term prospects. However about 170 cr debt post repayment from IPO proceeds is high.
- The issue is priced (~24–25× FY25E P/E) and relative to peers this is not attractive.
- Company did a private placement of Rs. 12 cr in June 2024. This was at Rs. 80 per share. A year year later now abuot 40% premium is being demanded whereas profits have remained stagnant.
- This post is exploratory and educational purposes only.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.