Indogulf Cropsciences IPO shares to list on July 3; experts recommend 'hold for long-term' - here's what GMP signals

Indogulf Cropsciences IPO shares to list on July 3. 

Indogulf Cropsciences shares will be listed on the exchanges on Thursday, following 25.98 times subscription in the primary market between June 26-30 at a fixed price band of Rs 105-111 per share.

The current grey market premium suggests a premium listing of up to 15 percent for the shares of the company on July 3. Meanwhile, experts recommend allotted investors to hold the stock for long term growth post listing.

Indogulf Cropsciences IPO got bids for 34.72 crore shares against 1.33 crore shares on offer. The quota for non-institutional investors fetched 48.39 times subscription while the category for Qualified Institutional Buyers (QIBs) got subscribed 33.26 times. Retail Individual Investors (RIIs) part received 14.78 times subscription. The company garnered over Rs 58 crore from anchor investors.

As of Wednesday evening, the shares of the company are commanding a GMP of about 15 percent in the unregulated market. Investorgain quoted a GMP of Rs 17 for the shares of the company, indicating a listing gain of 15.32 percent.

Indogulf Cropsciences with a legacy of over 30 years of experience in agro-chemical industry is engaged in production and marketing of crop protection products, plant nutrients, and biologicals.

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"We believe the company is well-positioned for long-term growth driven by its backward-integrated manufacturing, strong R&D, wide distribution network, and diversified product portfolio. Given the cyclical nature of the industry and dependence on government initiatives and organic farming trends, timely agri-boost measures are key. Therefore, we recommend investors who have being allotted the shares may hold for long term growth post listing," said Narendra Solanki, Head Fundamental Research- Investment Services, Anand Rathi Shares and Stock Brokers

The company has a strong innovation pipeline with 138 products under registration and 17 in production, supporting portfolio diversification and reducing seasonal and product concentration risks.

"On valuation basis it is fairly Valued Investor can Book Profit on Listing we are Expecting Listing Gain of 8-10%, As Good Names in QIP Investor List Showing Confidence in company so Investor who have Horizon 2-3 Year Can Be hold for Long term, added Mahesh M. Ojha, AVP Research & Business Development at Hensex Securities Pvt. Ltd.

The proceeds from the fresh issue to the tune of Rs 65 crore will be used for funding working capital requirements, Rs 34.12 crore for repayment of debt, and Rs 14 crore for its capital expenditure and general corporate purposes.

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