Crop Life Science, the agrochemical formulations manufacturer, has seen a decent response from investors on August 22, the final day of bidding.
Investors have bought 2.12 crore equity shares against the offer size of 51.4 lakh shares, supported majorly by retail individual investors who are allowed to invest up to Rs 2 lakh in the IPO.
Retail investors have bid 7.03 times the portion set aside for them, while high networth individuals (HNIs) have bought 1.65 times the allotted quota.
With an aim to raise Rs 26.73 crore at an issue price of Rs 52 per share, the Gujarat-based agriculture chemicals company opened its public issue for subscription on August 18. It is a fixed-price issue.
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The offer of 51.4 lakh shares, which comprises only fresh by the company, included the market maker's portion of 2.6 lakh shares. Hence, the remaining shares of 48.80 lakh shares are divided equally among retail and HNIs.
Crop Life Science, owned by the Lunagariya family, will utilise IPO funds mainly for working capital requirements amounting to Rs 19 crore. Apart from that, it will repay the loan amount of Rs 70 lakh and the remaining Rs 6.5 crore will be used for general corporate purposes, besides public issue expenses of Rs 52.8 lakh.
In addition to manufacturing of its own products at the facility in Gujarat Industrial Development Corporation, the company also undertakes job work for manufacturing pesticides and micro fertiliser.
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Crop Life Science will make its debut on the SME Platform of the National Stock Exchange of India on August 30, as per IPO schedule.
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