Indogulf Cropsciences Files Draft Papers For IPO, Eyes Rs 200 Crore Via Fresh Issue

Indogulf Cropsciences Ltd. on Wednesday filed the draft red herring prospectus for an initial public offering, which comprises a fresh issue worth Rs 200 crore.

The IPO also includes an offer-for-sale component, through which two existing shareholders of the company would offload up to 38.5 lakh equity shares. The amount targeted to be raised through the OFS was not mentioned in the DRHP.

The selling shareholders are Om Prakash Aggarwal and Sanjay Aggarwal, who would be paring 15.4 lakh equity shares and 23.1 lakh equity shares, respectively.

According to the DRHP, 50% of the fresh issue will be reserved for qualified institutional buyers, 35% for retail investors and 15% for non-institutional investors.

Systematix Corporate Services Ltd. will be the bookrunning lead manager to the issue, and Bigshare Services Pvt. will be the registrar, it added.

The amount raised through the fresh issue will be used for setting up an "in-house dry flowable plant" in Haryana's Sonipat, the company said.

The proceeds will also be used for funding working capital requirements, repayment or prepayment of certain outstanding borrowings, capital expenditure, and general corporate purposes, it added.

Indogulf Cropsciences, which is a manufacturer of crop protection products, logged a net profit of Rs 28.2 crore and revenue from operations of Rs 552.2 crore in the financial year 2024. In the preceding fiscal, the company had reported a net profit of Rs 22.4 crore and revenue of Rs 549.6 crore.

The draft papers for the IPO have been filed at a time when India's primary market has been buzzing, with more than 235 companies raising in excess of Rs 71,000 crore in 2024 so far.