Indogulf Cropsciences Share Price: Lists Flat at ₹111 Despite Strong IPO Subscription

Market Performance

Shares of Indogulf Cropsciences debuted flat on Dalal Street on Thursday, July 3, listing at ₹111 per share on both the NSE and BSE, which matched the issue price.

• NSE Listing Price: ₹111
• BSE Listing Price: ₹111
• Issue Price: ₹111

Despite commanding a premium of ₹18 in the unlisted market before listing, indicating a potential gain of 16.22%, the stock opened at its par value, failing to reflect that premium on its debut.

Main News

The Indogulf Cropsciences IPO saw strong investor demand, closing with a subscription of 25.98 times. However, this enthusiasm didn't translate into a premium listing.

IPO Subscription Details:

• Total Bids: 34.72 Crore shares
• Total Offer Size: 1.33 Crore shares
• Overall Subscription: 25.98x

Category-wise Subscription:

• Non-Institutional Investors (NIIs): 48.39x
• Qualified Institutional Buyers (QIBs): 33.26x
• Retail Investors: 14.78x

IPO Structure:

• Fresh Issue: 1.44 Crore shares worth ₹160 Crore
• Offer for Sale (OFS): 36.03 lakh shares worth ₹40 Crore

Before the listing, the company had raised ₹58.20 Crore from prominent anchor investors, such as:

• Abakkus Diversified Alpha Fund
• Viney Growth Fund
• Swyom India Alpha Fund
• Sunrise Investment Trust
• Rajasthan Global Securities

Company Details

Incorporated in 1993, Indogulf Cropsciences operates in the agrochemical sector and focuses on:

• Crop protection products
• Plant nutrients
• Biologicals

The company has built a strong global presence, exporting its products to over 34 countries. This global expansion underscores its growing presence in international markets.

Financial Performance

Revenue

• FY24 Revenue: ₹555.79 crore

EBITDA & Margins

• EBITDA Margin: Over 10%

Net Profit

• Profit After Tax (PAT): ₹28 Crore

Return on Equity (ROE)

• ROE: 12.2%

Summary of the Article

• Indogulf Cropsciences' share price opened flat at ₹111, despite a substantial grey market premium.
• The IPO was oversubscribed nearly 26 times, with heavy interest from NIIs and QIBs.
• The company raised ₹200 Crore through a fresh issue and OFS.
• Anchor investors had committed ₹58.20 Crore ahead of the IPO.
• Global expansion and consistent financial performance are the company's current focus.

While the debut was muted in terms of price action, the high investor interest and solid fundamentals position Indogulf Cropsciences as a notable new entrant in the agrochemical sector.