Upcoming IPO: Delhi-based Indogulf Cropsciences files DRHP for the launch of IPO worth ₹200 crore | Stock Market News

Upcoming SME IPOs: Indogulf Cropsciences Limited, a prominent manufacturer of crop protection products, plant nutrients, and biologicals in India, has taken a significant step towards going public. On September 25, 2024, the company filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), outlining its plans for an initial public offering (IPO).

The proposed IPO structure includes a fresh issue of shares worth up to ₹200 crore and an offer for sale (OFS) of up to 38,54,840 equity shares by existing shareholders. As part of the promoter group, Om Prakash Aggarwal (HUF) and Sanjay Aggarwal (HUF) will sell 15.4 lakh and 23.13 lakh shares, respectively, in the OFS.

Indogulf Cropsciences intends to use the funds raised for various purposes, including ₹100 crore for working capital requirements, ₹40 crore for debt repayment, and ₹14 crore for capital expenditure to set up a dry flowable (DF) plant in Sonipat, Haryana. The remaining funds will be allocated for general corporate purposes.

Founded in 1993, the company has established itself as a key player in the agricultural solutions sector, offering a wide range of products across crop protection, plant nutrients, and biologicals. Indogulf Cropsciences operates four manufacturing facilities located in Jammu & Kashmir and Haryana. Its product range includes various formulations such as water dispersible granules, suspension concentrates, capsule suspensions, and emulsion in water.

Indogulf Cropsciences financial performance

The company’s financial performance has shown positive trends. For the fiscal year ending March 2024, Indogulf reported a net profit of ₹28.2 crore, reflecting a 25.9 per cent increase from ₹22.4 crores in the previous year. Revenue from operations grew marginally by 0.5 per cent to ₹552.2 crore, while EBITDA rose by 21.5 per cent to ₹59.4 crore, improving the margin by 190 basis points to 10.8 per cent.

Indogulf Cropsciences boasts a strong presence both domestically and internationally, with operations spanning 22 states and 3 Union Territories in India, as well as exports to over 34 countries globally. The company maintains strong relationships with key clients like Krishi Rasayan Exports, Parijat Industries India, BR Agrotech, Crystal Crop Protection, and Asasiat of Development for Agric & Trade Co, UAE.

In the competitive landscape, Indogulf faces established players such as Aries Agro, Basant Agro Tech India, Best Agrolife, Bhagiradha Chemicals & Industries, Heranba Industries, India Pesticides, and Dharmaj Crop Guard.

Systematix Corporate Services has been appointed as the sole merchant banker for the IPO. As the agricultural sector continues to evolve, Indogulf Cropsciences’ IPO represents a significant development in the Indian agrochemical industry. Investors and industry observers will be watching closely as the company moves forward with its public offering plans.

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