Gujarat-based agrochemical company GSP Crop Science has filed preliminary papers with the capital markets regulator SEBI to raise funds via initial public offering. The IPO is a combination of fresh issuance of equity shares worth Rs 280 crore, and an offer-for-sale of 60 lakh shares by promoters.
Vilasben Vrajmohan Shah, Bhavesh Vrajmohan Shah, and Kappa Trust are the selling shareholders in the offer-for-sale, as per the draft red herring prospectus filed on December 20.
The crop protection solutions provider may raise Rs 56 crore before the IPO launch. If the said pre-IPO placement is completed, the company will reduce such amount from its fresh issue component.
GSP Crop Science plans to repay its Rs 200 crore debt through fresh issue proceeds, and the remaining IPO funds will be utilised for general corporate purposes. The outstanding indebtedness of the company is Rs 428.3 crore out of which Rs 288.96 crore is fund based, as per the DRHP.
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Promoters hold 98.25 percent stake in the company that competes with several listed entities including PI Industries, Sumitomo Chemical India, Dhanuka Agritech, Rallis India, Bharat Rasayan, India Pesticides, and Heranba Industries. The remainder 1.75 percent stake is held by the public.
Since commencing operations in 1985, GSP has expanded its product portfolio to include insecticides, herbicides, fungicides and plant growth regulators. It has received 507 registrations across formulations and technicals for agrochemicals, while it has been granted 89 patents, and additionally also has 98 patent applications under process as of December 20, 2024.
Equirus Capital, and Motilal Oswal Investment Advisors are appointed as the book running lead managers to the issue.
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