The Indogulf Cropsciences IPO saw a flat listing on the bourses on July 3, 2025, with shares listing at ₹111 on both the NSE and BSE, the same as the issue price. The ₹200 crore IPO was open for subscription from June 26 to June 30, 2025.

IPO Details and Subscription Status

The Indogulf Cropsciences IPO comprised a fresh issue of 1.44 crore shares aggregating to ₹160.00 crore and an offer for sale of 0.36 crore shares amounting to ₹40.00 crore. The IPO was subscribed 25.98 times in total. The qualified institutional buyers (QIB) portion was subscribed more than 31 times, while the non-institutional investors (NII) and retail categories were subscribed over 49 and 14 times, respectively.

Grey Market Premium (GMP)

Ahead of the listing, the grey market premium (GMP) for Indogulf Cropsciences IPO signaled an estimated listing price of ₹129 apiece, a premium of 16.22% to the issue price. However, the stock listed at the same price as the IPO.

Financial Performance and Objectives

Indogulf Cropsciences reported a profit of ₹28.23 crore in FY24 on revenues of ₹555.79 crore. The company's profit after tax (PAT) margin stood at 5.11%, and return on equity (ROE) at 12.2%. The company intends to use the IPO proceeds for working capital, debt repayment, and capital expenditure for a new DF plant.

Company Overview

Founded in 1993, Indogulf Cropsciences Limited is an Indian agrochemical company specializing in crop protection products, plant nutrients, and biological solutions. The company has four manufacturing units across Haryana and Jammu & Kashmir, with an aggregate effective installed capacity of 25,720 MTPA. Crop protection products accounted for 91.6% of its revenue in FY24, followed by biologicals at 5% and nutrients at 3.4%. B2C customers accounted for 51.6% of its revenue, followed by B2B at 35.2%, with exports making up 13.2% of sales.

Factors to Consider

• Strengths: Anand Rathi assigned a "subscribe" tag to the IPO, noting that the issue was fairly priced based on annualized FY25 numbers. Stable top and bottom lines, backward-integrated manufacturing facilities, focused R&D, a strong distribution network, and a diversified product portfolio were cited as positives.
• Weaknesses: Value Research pointed out the company's long working capital cycle, with a net working capital cycle of 200 days in FY24. The company's reliance on short-term credit and the cyclical nature of the agrochemical industry are also key risks.
• Valuation: At the upper price band of ₹111, the stock is expected to be valued at a P/E and P/B ratio of around 20.3 and 1.6 times, respectively.

Analyst Recommendations

• Mahesh M. Ojha, AVP Research & Business Development at Hensex Securities Pvt. Ltd. expected a listing gain of 8%-10%.
• Anand Rathi assigned a "subscribe" tag to the IPO.
• BP Wealth also assigned a "subscribe" tag to the Indogulf Cropsciences IPO.

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