Delhi-based Indogulf Cropsciences Limited files DRHP for IPO

Delhi-based Indogulf Cropsciences Limited files DRHP for IPO

Indogulf Cropsciences Limited, manufacturer of crop protection products, plant nutrients, and biologicals in India, has filed its draft red herring prospectus (DRHP) with the market regulator, the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

The IPO with a face value of Rs 10 per equity share is a mix of fresh issue of up to Rs 200 crore and an offer for sale of up to 38,54,840 equity shares by Selling Shareholders. The offer also includes a subscription reservation for eligible employees.

The offer for sale consists of up to 15,40,960 equity shares by Om Prakash Aggarwal (HUF) and up to 23,13,880 equity shares by Sanjay Aggarwal (HUF).

The company, in consultation with the book-running lead managers, may consider a pre-IPO placement of specified securities shall not exceed 20% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.

The Offer is being made through the book-building process, wherein not more than 50% of the net offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the net offer shall be available for allocation to non-institutional investors, and not less than 35% of the net offer shall be available for allocation to retail individual investors.

The proceeds from the fresh issue to the extent of Rs 100 crore will be used for funding working capital requirements of the company; Rs 40 crore for repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the Company; Rs 14 crore for Capital expenditure of the Company for setting up an in-house dry flowable (DF) plant at Barwasni, District Sonipat, Haryana; and general corporate purposes.

Indogulf Cropsciences began operations in 1993 in three business segments: crop protection, plant nutrients, and biological products offering solutions to the retail and institutional customers to enhance crop productivity.

The Company was the first Indian producers of Pyrazosulfuron Ethyl technical with at least 97% purity, manufactured in the year 2018 and in 2019, it manufactured Spiromesifen Technical, with a purity of at least 96.5%. According to a CareEdge Report mentioned in the DRHP, Indogulf Cropsciences has established itself as an exporter of crop protection, plant nutrients, and biological products. It has achieved the status of a 'Two Star Export House' from the Government of India.

Indogulf Cropsciences offers a broad portfolio of products across various formulations, which includes WDG, SC, CS, ULV, EW, SG, and FS in the form of powder, granule, and liquids, creating diversified formulations to implement increased crop yields as well as promote sustainable agriculture practices and a responsible approach towards the environment.

Indogulf Cropsciences is present in three key verticals: In Crop Protection, brands include: Farrate, Dominator, Corsa-808, Alkazar and Bound Off for overall technical products like Abamectin Tech, B.P.M.C Tech, Chlorantraniliprole, Quizalofop, Spiromesifen, and Azoxystrobin Technical. Among the Biologicals, there exist brands like Breeza, Apache, Root-o-Max Gold, and Empire. Licensed Products include Picaso Gold, Picaso Power, Jagromin-99, Zinc Super Gold, and Zinc Super+.

The major clients of the company includes Krishi Rasayan Exports Private Limited, Delhi; Parijat Industries (India) Private Limited, Delhi; BR Agrotech Private Limited, Delhi; Crystal Crop Protection Limited, Delhi; and Asasiat of Development for Agric & Trade Co., UAE. Major suppliers include GSP Crop Science Private Limited, Gujarat; Dagro Chemical (Changzhou) Co. Ltd., China; Hubei Benxing Supply Chain Management Co. Ltd, China; and MaxxGro Agrology Private Limited, Delhi.

Currently, Indogulf Cropsciences operates four manufacturing units located in Samba, Jammu and Kashmir; Nathupur - I and II, Haryana; and Barwasni, Haryana. It has two wholly-owned subsidiaries one in Indogulf Cropsciences Australia Pty Ltd, Sydney, Australia and the other, Abhiprakash Globus Private Limited in Delhi.

The company has a sales and distribution network in 22 states and 3 Union Territories in India and above 34 countries around the globe. As of 31 August 2024, it has tied up with 169 institutional (B2B) clients, 5,772 active domestic distributors (B2C), supported by 17 stock depots and six sales/branch offices. It distributes its products efficiently through more than 34 countries with 129 international business partners.

Indogulf Cropsciences’ revenue from operations increased from Rs 549.66 crore in Fiscal 2023 to Rs 552.23 crore in Fiscal 2024. Profit after tax increased by 25.91% from Rs 22.42 crore for Fiscal 2023 to Rs 28.23 crore for Fiscal 2024.

Systematix Corporate Services Limited is the sole book-running lead manager and Bigshare Services Private Limited is the registrar to the offer.