Indogulf Cropsciences, which manufactures crop protection products, plant nutrients and biologicals, has filed preliminary papers with the capital markets regulator SEBI for fundraising via initial public offering, on September 25.
The IPO is a mix of fresh issue of Rs 200 crore, and an offer-for-sale (OFS) of 38,54,840 equity shares by the existing shareholders. Om Prakash Aggarwal (HUF) and Sanjay Aggarwal (HUF), part of the promoter group, will be selling 15.4 lakh and 23.13 lakh shares respectively in the OFS.
With four manufacturing facilities in Jammu and Kashmir, and Haryana, the Delhi-based company that focuses on improving crop yield manufactures products in several types of formulations such as water dispersible granules, suspension concentrate, capsule suspension, ultra-low volume, emulsion in water, soluble granule, and flowable suspension.
It also exports crop protection, plant nutrients and biological products to over 34 countries. It has long-standing relationships with several customers including Krishi Rasayan Exports, Parijat Industries India, BR Agrotech, Crystal Crop Protection; and Asasiat of Development for Agric & Trade Co, UAE.
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Indogulf Cropsciences will utilise Rs 100 crore out of the net fresh issue proceeds for its working capital requirements, Rs 40 crore for repaying debt, and Rs 14 crore for setting up an in-house dry flowable (DF) plant at Sonipat, Haryana, besides funds for general corporate purposes.
The company competes with Aries Agro, Basant Agro Tech India, Best Agrolife, Bhagiradha Chemicals & Industries, Heranba Industries, India Pesticides, and Dharmaj Crop Guard in the listed space.
The crop protection segment accounted for 91 percent of its revenue, and the remaining from plant nutrients and biologicals divisions. Net profit for the fiscal year ended March 2024 at Rs 28.2 crore increased by 25.9 percent from Rs 22.4 crore despite muted topline growth.
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Revenue from operations grew by 0.5 percent year-on-year to Rs 552.2 crore in the fiscal 2024. EBITDA (earnings before interest, tax, depreciation and amortisation) for the year FY24 increased by 21.5 percent to Rs 59.4 crore and the margin jumped by 190 bps to 10.8 percent compared to FY23.
Systematix Corporate Services is the sole merchant banker to the issue.
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