GSP Crop Science IPO in focus: The IPO of GSP Crop Science has witnessed a sharp rise in investor interest, especially from institutional participants, during the final day of bidding, which pushed the subscription rate to over 1.6 times.
The issue, which opened on Monday, March 16, closed today, and during the three-day bidding period, it attracted bids for 1.43 crore shares against over 87.50 lakh shares on offer, resulting in a subscription rate of 1.64 times, as per exchange data.
The qualified institutional buyer (QIB) segment saw a strong spike in demand, with the quota being subscribed 2.66 times, while the non-institutional investor (NII) portion was subscribed 3.14 times, and the retail investor portion witnessed the weakest subscription at 0.42 times.
GSP Crop Science IPO Details
GSP Crop Science IPO, worth ₹400 crore, is ₹304–320″>priced in the range of ₹304–320 per equity share. It comprises a fresh issue of 0.75 crore shares, aggregating to ₹240 crore, and an offer for sale of 0.50 crore shares, aggregating to ₹160 crore.
The basis of allotment is expected to be finalised on Friday, March 20. Successful bidders are likely to receive shares in their demat accounts on Monday, March 23, and refunds for non-allottees will also be processed on the same day. The stock is slated to list on BSE and NSE on Tuesday, March 24.
The company plans to use the proceeds from the fresh share sale to the tune of ₹170 crore, for the repayment or prepayment of all or a portion of certain outstanding borrowings. The remaining portion will be used for general corporate purposes.
The issue has allocated 35% of shares for retail investors, 50% for qualified institutional buyers (QIBs), and 15% for non-institutional investors (NIIs). Equirus Capital Pvt. Ltd. is the book-running lead manager, and MUFG Intime India Pvt. Ltd. is the registrar to the issue.
Meanwhile, the grey market premium (GMP) of GSP Crop Science, as of today, was nil, indicating that the stock might list at the issue price.
The grey market premium reflects the additional price investors are willing to pay over the official issue price.
About GSP Crop Science
GSP Crop Science specialises in the development and manufacturing of insecticides, herbicides, fungicides, and plant growth regulators in India and has over 40 years of experience in the agrochemical industry.
In addition to the domestic market, GSP products are also supplied to more than 35 international markets, including Uruguay, the United States, Vietnam, Brazil, Singapore, Bangladesh, the United Arab Emirates, Taiwan, Australia, and Sri Lanka.
On the financial front, the company’s revenue from operations stood at ₹1,152.16 crore in fiscal 2024, compared with ₹1,203.31 crore in the preceding fiscal year. Profit after tax (PAT) surged to ₹61.29 crore in fiscal 2024 from ₹21.55 crore in fiscal 2023.
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