Indogulf Cropsciences  IPO Details:

IPO Type	Book Built Issue
Exchange Listing	BSE, NSE
Face Value	₹10 per equity share
Price Band	₹105 – ₹111 per equity share
IPO Dates	June 26, 2025 – June 30, 2025
Fresh Issue Size	₹160 crore
Offer For Sale (OFS) Size	₹40 crore (by promoters Om Prakash Aggarwal (HUF) and Sanjay Aggarwal (HUF))
Total Issue Size	₹200 crore
Minimum Lot Size (Retail)	135 shares
Minimum Investment (Retail)	₹14,985 (at upper price band)
Maximum Investment (Retail)	₹1,94,805 (13 lots / 1,755 shares)
Tentative Allotment Date	July 1, 2025
Initiation of Refunds	July 2, 2025
Credit of Shares to Demat	July 2, 2025
Tentative Listing Date	July 3, 2025
Registrar	Bigshare Services Private Limited
Lead Manager	Systematix Corporate Services Limited
Use of Fresh Issue Proceeds	– Working Capital (₹65 Cr) <br> – Debt Repayment (₹34.12 Cr) <br> – Capex for DF Plant (₹14 Cr) <br> – General Corporate Purposes
Retail Reservation	Not less than 35% of the Net Offer
QIB Reservation	Not more than 50% of the Net Offer
NII Reservation	Not more than 15% of the Net Offer

Tentative IPO Timeline:

IPO Open Date	Wed, Jun 25, 2025
IPO Close Date	Fri, Jun 27, 2025
Tentative Allotment	Mon, Jun 30, 2025
Initiation of Refunds	Tue, Jul 1, 2025
Credit of Shares to Demat	Tue, Jul 1, 2025
Tentative Listing Date	Wed, Jul 2, 2025
Cut-off time for UPI mandate confirmation	5 PM on June 26, 2025

Objective

The funds raised from the fresh issue are intended for:

• Meeting the company’s working capital requirements (₹65 crore).
• Repayment or prepayment of certain outstanding borrowings (₹34.12 crore).
• Capital expenditure for setting up an in-house dry flowable (DF) manufacturing plant at Barwasni in Haryana’s Sonipat district (₹14 crore).
• General corporate purposes.

Pros (Strengths & Opportunities):

• Established Track Record and Experienced Management
• Diversified Product Portfolio and Backward Integration
• Strong Distribution Network and Global Presence
• Financial Stability and Growth Outlook

Cons (Weaknesses/Risks):

• Dependence on Climatic Conditions
• Highly Competitive and Fragmented Industry
• Working Capital Intensive Operations
• Raw Material Price Volatility and Import Dependence
• Regulatory Risks
• Lower Profit Margins Compared to Some Peers

Indogulf Cropsciences : An Overview

Indogulf Cropsciences Limited is an Indian agrochemical company with a history dating back to 1993. It is involved in the manufacturing, distributing, and exporting of a comprehensive range of crop protection products, plant nutrients, and biological solutions. The company aims to support farmers in enhancing agricultural productivity and adopting sustainable farming practices. Recognized as a “Two-Star Export House” by the Government of India, Indogulf has a significant international presence.

The company operates four ISO-certified manufacturing facilities in India, specifically in Jammu & Kashmir and Haryana. It also has a strong R&D focus, with an NABL-accredited laboratory, enabling it to develop new formulations and products. Indogulf Cropsciences has two subsidiaries: Indogulf Cropsciences Australia Pty Ltd in Sydney and Abhiprakash Globus Private Limited in Delhi, which support its global expansion and product registrations.

Core Business:

Indogulf Cropsciences’ core business revolves around three main verticals:

1. Crop Protection: This segment includes a wide range of products such as:
   • Insecticides: To control insect pests.
   • Herbicides/Weedicides: To manage unwanted weeds.
   • Fungicides: To protect crops from fungal diseases.
   • Termiticides: For termite control.
   • Public Health and Veterinary: Broader applications beyond direct crop use. The company is notable for being among the early indigenous producers of Pyrazosulfuron Ethyl technical and manufactures Spiromesifen technical with high purity.
2. Plant Nutrients: These products aim to improve soil health and nutrient uptake by plants, leading to better crop yield and quality. This includes various types of fertilizers and micronutrients.
3. Biologicals/Biostimulants: This growing segment focuses on eco-friendly solutions derived from natural sources that enhance plant growth, nutrient efficiency, and stress tolerance.

Indogulf provides its solutions in various formulations, including water dispersible granules, suspension concentrates, capsule suspensions, and ultra-low volume liquids, catering to a diverse range of crops like cereals, pulses, oilseeds, fiber crops, plantations, fruits, and vegetables.

Market Position:

Indogulf Cropsciences holds an established position in the Indian agrochemical market, backed by:

• Long-standing Experience: Over three decades in the industry, with promoters having even longer experience (over four decades within the larger Agarwal family group, which includes other significant agrochemical companies).
• Diversified Product Portfolio: Its wide range of products across different segments (crop protection, plant nutrients, biologicals) helps de-risk the business and caters to varied farmer needs. The product portfolio expanded from 198 products in FY2022 to 288 in FY2025.
• Extensive Distribution Network: A pan-India sales and dealer presence across 22 states and 3 Union Territories in India, supported by over 6,900 domestic distributors and 17 stock depots. Internationally, it has 143 overseas business partners in over 34 countries, making it a significant exporter.
• Backward Integration: In-house manufacturing of key technicals like Pyrazosulfuron Ethyl and Spiromesifen provides raw material security and better control over costs and quality, giving it an edge over companies reliant solely on formulations.
• Strong R&D Capabilities: Its NABL-accredited R&D facilities are crucial for developing new products and formulations, keeping pace with evolving agricultural challenges and fostering innovation for sustainable agriculture.

Future Outlook:

The future outlook for Indogulf Cropsciences appears positive, driven by several factors:

• Growing Indian Agrochemical Market: The Indian crop protection and nutrition market is expected to grow significantly due to increasing food demand from a growing population, improved irrigation facilities, and rising awareness among farmers about modern agricultural practices.
• Government Initiatives: Schemes like PMFBY (Pradhan Mantri Fasal Bima Yojana), e-NAM (National Agriculture Market), and the Production Linked Incentive (PLI) scheme for agrochemicals are supportive of the industry. India’s emergence as the second-largest exporter of agrochemicals globally also presents opportunities.
• Expansion Plans: The IPO proceeds for setting up a new dry flowable (DF) manufacturing plant in Sonipat, Haryana, and for working capital will enable the company to expand its production capacities and market reach. This new plant is expected to contribute to growth from December 2024 onwards.
• Focus on R&D and Diversification: Continued investment in R&D and diversification into biologicals and niche products positions the company for future growth and resilience against market fluctuations. The expansion of its product portfolio (to 288 in FY25) reflects this strategy.
• Global Shift in Supply Chains: Post-COVID-19, there’s a trend of global manufacturers shifting production away from China to India, which could provide Indogulf with opportunities to become a larger global manufacturing hub.

Challenges:

Despite a positive outlook, Indogulf Cropsciences faces several challenges inherent to the agrochemical industry:

• Climatic and Seasonal Dependence: Agricultural output and, consequently, demand for agrochemicals are highly dependent on monsoon patterns and other agro-climatic conditions. Unfavorable weather can directly impact sales and profitability.
• Intense Competition: The Indian agrochemical market is highly competitive and fragmented, with the presence of large multinational corporations, established domestic players, and numerous smaller regional players. This intense competition can lead to pricing pressures and necessitate significant marketing expenditure.
• Raw Material Price Volatility and Import Dependence: While the company has backward integration for some technicals, it still relies on imports for a portion of its raw material requirements (e.g., from China, Taiwan, South Korea). Volatility in global raw material prices and foreign exchange rates can impact profit margins.
• Regulatory Risks: The agrochemical industry is subject to stringent regulations regarding product registration, manufacturing standards, and environmental norms. Any adverse changes in government policies or a reduction in subsidies to farmers could negatively impact the business.
• Working Capital Management: Given the seasonal nature of demand and the wide distribution network, maintaining optimal inventory levels and managing working capital effectively can be a challenge. ICRA notes the business has “high working capital intensity.”
• Pest Resistance and New Technologies: The continuous development of pest resistance to existing chemicals necessitates ongoing R&D and the introduction of new, effective technologies. Failure to adapt could impact market relevance.
• Counterfeit Products: The market also faces the challenge of spurious or fake products, which can undermine legitimate players and harm farmers.

How does Indogulf Cropsciences  IPO perform financially?

Financial Performance (₹ Crore):

Period Ended	31 Dec 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	597.81	542.25	517.51	413.59
Revenue	466.31	555.79	552.19	490.23
Profit After Tax	21.68	28.23	22.42	26.36
EBITDA	44.78	55.74	49.04	47.24
Net Worth	265.43	231.65	203.25	180.51
Reserves and Surplus	216.64	208.01	179.60	156.87
Total Borrowing	206.30	154.56	189.22	101.38
Amount in ₹ Crore

Key Perfomance Indicator(KPI)

KPI	Values
ROE	12.2%
ROCE	11.93%
Debt/Equity	0.67
RoNW	12.19%
PAT Margin	5.11%
EBITDA Margin	10.09%
Price to Book Value	1.13

Competitive Analysis: Indogulf Cropsciences – Market Peers

The Indian agrochemical market is characterized by a mix of multinational corporations (MNCs) with strong R&D and global reach, and a large number of domestic players. Indogulf Cropsciences falls into the latter category, positioning itself as a well-established, diversified Indian company with a growing international footprint and backward integration capabilities.

Categories of Competitors:

1. Large Multinational Corporations (MNCs) with Indian Operations: These are global leaders with significant R&D budgets, wide product portfolios, strong brand recognition, and established distribution networks in India. They often introduce patented molecules and advanced technologies.
   • UPL Ltd.
   • Bayer CropScience Ltd..
   • BASF India Ltd.
   • Sumitomo Chemical India Ltd.
   • FMC Corporation
2. Large & Mid-Sized Indian Players with Strong R&D and Manufacturing: These companies often focus on generic molecules, formulation development, and some level of technical manufacturing. They have strong domestic distribution and increasingly look at export markets.
   • PI Industries Ltd.
   • Dhanuka Agritech Ltd.
   • Rallis India Ltd.
   • Bharat Rasayan Ltd.
   • India Pesticides Ltd.
   • Heranba Industries Ltd.
   • Best Agrolife Ltd.
   • Bhagiradha Chemicals & Industries Ltd.
   • Sharda Cropchem Ltd.:
   • NACL Industries Ltd. (Nagarjuna)
   • Dharmaj Crop Guard Ltd
   • Insecticides (India) Ltd.
   • Meghmani Organics Ltd.
   • Punjab Chemicals & Crop Protection Ltd.
3. Smaller & Regional Players: Numerous small to medium-sized companies operate at regional levels, often focusing on specific product niches or geographies.

Indogulf Cropsciences IPO GMP

As of Monday, June 23, 2025, the Grey Market Premium (GMP) for Indogulf Cropsciences IPO is reported to be around ₹11. This suggests a potential listing at approximately ₹122 per share (₹111 + ₹11), indicating a premium of about 9.91% over the upper end of the price band.

It’s important to remember that GMP is a speculative, unofficial indicator and should not be the sole basis for investment decisions.

Disclaimer:

• IPO Grey Market Premium (Indogulf Cropsciences IPO GMP) mention is valid for the specific date as mentioned in the header.
• We are not buying and selling IPO forms on IPO Grey Market.
• Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.

Indogulf Cropsciences IPO

🔴 Live Subscription Status 🔴

25/06/2025 10:00 AM

	NO OF SHARES OFFERED	Day 1	Day 2	Day 3
Qualified Institutional Buyers(QIBs)
Non Institutional Investors(NIIs)
Retail Individual Investors(RIIs)
Employees
Total

FINAL TAKEAWAY

✅  NA

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