Indogulf Cropsciences IPO: All You Need to Know Before Investing

India’s agrochemical sector is set to welcome a new listed player, Indogulf Cropsciences Limited. With over three decades in the agribusiness space, the company is now gearing up for its Initial Public Offering (IPO), aiming to tap the capital markets with a combination of fresh equity issuance and an Offer for Sale (OFS). But beyond the numbers lies a deeper story of legacy, sector positioning, regulatory hurdles, and future opportunities.

Is this IPO worth your attention? Let’s see.

Table of Contents

1. Company Background: Indogulf Cropsciences Limited’s Business History and Promoter Details
2. Business Model and Industry Overview: What Does Indogulf Cropsciences Do?
3. Indogulf Cropsciences IPO Details: Fresh Issue, OFS Size, and Use of Funds
4. IPO Allotment Structure: How Shares Will Be Allocated to Investors
5. Indogulf Cropsciences IPO Listing Date and Stock Exchange Details
6. Leadership, Board of Directors, and Financial Performance Snapshot
7. Key Risks Investors Should Know Before Applying for Indogulf Cropsciences IPO
8. Should You Invest in Indogulf Cropsciences IPO? Final Verdict
9. FAQs About Indogulf Cropsciences IPO 2025

Company Background: Indogulf Cropsciences Limited’s Business History and Promoter Details

India’s agrochemical sector is poised to witness a new market entrant with the upcoming Indogulf Cropsciences IPO 2025. Backed by over 30 years in the agribusiness space, the company plans to raise funds through a combination of Fresh Issue and Offer for Sale (OFS). This IPO not only signals its growth ambitions but also highlights evolving opportunities within India’s farm input industry. Here’s a detailed look at its business journey, IPO structure, financials, and risks every investor should know.

Indogulf Cropsciences Limited was initially incorporated as "Jai Shree Rasayan Udyog Limited" on January 22, 1993, before adopting its current name on October 14, 2015. This rebranding marked a strategic shift and expansion of its operations within the agrochemical industry.

Where It Stands Today:

• Registered Office: 501, Gopal Heights Plot No-D-9, Netaji Subhash Place, New Delhi 110034, Delhi, India.
• Promoters: Om Prakash Aggarwal, Sanjay Aggarwal, Anshu Aggarwal, and Arnav Aggarwal.
• CIN: U74899DL1993PLC051854.

Quick Note: A three-decade operational track record in the cyclical agrochemical sector highlights both resilience and adaptability.

Mini-wrap: This IPO marks a milestone in Indogulf’s journey from a regional player to a national, publicly listed entity.

Business Model and Industry Overview: What Does Indogulf Cropsciences Do?

Indogulf Cropsciences operates in India’s vital agrochemical sector, manufacturing a range of crop protection solutions that support higher farm yields and productivity. The company has built a strong intellectual property portfolio with 167 registered trademarks and 102 applications in process. Its operational scale is steadily improving, with capacity utilisation rising from 19.69% in Fiscal 2022 to 30.35% in Fiscal 2024. This growth reflects increasing demand, though agrochemical sales remain naturally seasonal.

What They Do: Indogulf operates in India’s vital agrochemical sector, manufacturing crop protection solutions crucial for enhancing agricultural productivity. Their product range caters to various crops, including cereals, pulses, oilseeds, fiber crops, plantations, and fruits and vegetables. The company also engages in institutional sales across India and international markets.

IP Asset Base:

• 167 registered trademarks
• 102 pending applications (with 38 under objection)

Capacity Utilisation Trend (Manufacturing Facilities):

• FY24: 30.35%
• FY23: 25.37%
• FY22: 19.69%

Note: Agrochemical demand is highly seasonal; capacity utilisation varies and isn’t a long-term indicator.

Mini-wrap: A robust IP portfolio and rising capacity utilisation hint at operational momentum, though demand cyclicality remains a core challenge.

Indogulf Cropsciences IPO Details: Fresh Issue, OFS Size, and Use of Funds

The Indogulf Cropsciences IPO will be a 100% Book-Built Issue as per SEBI norms.

Offer Components:

• Fresh Issue: This involves issuing Equity Shares with a face value of ₹10, aggregating up to ₹1,600 million (₹160 crore). The proceeds, after deducting offer-related expenses, will constitute the "Net Proceeds" and are intended for various corporate purposes.
   
• Offer for Sale (OFS): Existing selling shareholders will offer up to 3,603,603 Equity Shares.
  • Om Prakash Aggarwal (HUF) will offer up to 1,540,960 Equity Shares.
  • Sanjay Aggarwal (HUF) will offer up to 2,313,880 Equity Shares.
  • Their weighted average cost of acquisition is ₹0.16 and ₹0.02 per equity share, respectively.

Use of Fresh Issue Proceeds: The Net Proceeds from the Fresh Issue are proposed to be utilised for:

• ₹100 crore for funding the working capital requirements of the company.
• ₹40 crore for repayment/pre-payment, in part or full, of certain outstanding borrowings.
• ₹14 crore for capital expenditure towards setting up an in-house dry flowable (DF) plant at Barwasni, District Sonipat, Haryana.
• The remaining portion for general corporate purposes.

Pre-IPO Placement Consideration: The company may consider a Pre-IPO Placement of specified securities, in consultation with the Book Running Lead Manager (BRLM). This placement, if undertaken, would be for an undisclosed amount prior to filing the Red Herring Prospectus. Any funds raised through a Pre-IPO Placement would reduce the general corporate purposes portion of the Fresh Issue and would not exceed 20% of the Fresh Issue size. Subscribers would be informed that there's no guarantee the main offer will proceed or result in listing.

IPO Allotment Structure: How Shares Will Be Allocated to Investors

The IPO utilises a Book Building Process, with Equity Shares meticulously allocated among investor categories:

Equity Share Allocation:

• Qualified Institutional Buyers (QIBs): Not more than 50% of the Net Offer is available for proportionate allocation.
  • Anchor Investors: Up to 60% of the QIB category may be allocated to Anchor Investors, with one-third reserved for domestic Mutual Funds, provided valid bids are received at or above the Anchor Allocation Price.
  • An additional 5% of the Net QIB Category is reserved for Mutual Funds, with the remainder for all QIBs.
     
• Non-Institutional Investors (NIIs): Not less than 15% of the Net Offer is allocated to NIIs, divided into two sub-categories:
  • One-third for bidders with an application size between ₹200,001 and ₹1,000,000.
  • Two-thirds for bidders with an application size exceeding ₹1,000,000.
     
• Retail Individual Investors (RIIs): Not less than 35% of the Net Offer is available for RIIs. Allotment will be not less than the minimum bid lot, with remaining shares allotted proportionately.
   
• Eligible Employees: Up to 1% of the post-Offer paid-up Equity Share Capital, aggregating up to ₹500,000, is reserved for eligible employees.
  • Eligible Employees are permanent staff and directors of Indogulf Cropsciences and its subsidiaries (excluding promoters and those holding over 10% equity) as of the RHP filing date, entitled to apply under a reserved IPO quota with specific bidding limits, allotment criteria, and ASBA-based application norms. Initial allotment to employees will not exceed ₹200,000, with any unsubscribed portion available for proportional allocation to employees who bid above ₹200,000, up to the ₹500,000 limit.

Application Mode:

• All bidders, except Anchor Investors, must participate through the Application Supported by Blocked Amount (ASBA) process, either via a Self-Certified Syndicate Bank (SCSB) or UPI.
• UPI mandates close by 5 PM on the Bid/Offer closing day.

Mini-wrap: Standard IPO allocation dynamics, with a healthy retail share. Expect strong participation if pricing is attractive.

Indogulf Cropsciences IPO Listing Date and Stock Exchange Details

The Equity Shares are proposed to be listed on both BSE Limited (BSE) and National Stock Exchange of India Limited (NSE). BSE will be the Designated Stock Exchange for the Offer.

Leadership, Board of Directors, and Financial Performance Snapshot

Board & Key Management:

• Chairman and Whole-time Director: Om Prakash Aggarwal
• Managing Director: Sanjay Aggarwal
• Chief Financial Officer: Manoj Gupta
• Company Secretary and Compliance Officer: Sakshi Jain

Governance Committees: The company has established various committees to ensure robust corporate governance, including the Audit Committee, CSR Committee, IPO Committee, Risk Management Committee, Nomination and Remuneration Committee, and Stakeholders Relationship Committee.

Financial Disclosures (Restated Consolidated Financials - Amounts in ₹ Million):

Note: Financial figures are as per restated consolidated financials disclosed in the Red Herring Prospectus, prepared in accordance with SEBI and applicable accounting standards.

Wrap-up: Indogulf Cropsciences demonstrated steady financial momentum in FY24, with revenue from operations growing marginally to ₹5,522 million and EBITDA improving to ₹557 million. Profit after tax climbed to ₹282 million, supported by a healthier EBITDA margin of 10.09%. The company’s improving profitability and reduced debt-equity ratio signal operational stability and financial prudence ahead of its IPO.

Key Risks Investors Should Know Before Applying for Indogulf Cropsciences IPO

Potential investors should be aware of several key risks outlined in the Red Herring Prospectus:

Key Risk Flags:

• First-time listing risk: There is no existing public market for its shares, and the price will be determined through the book-building process. There is no assurance that the Equity Shares will be traded at or above the Offer Price post-listing, or that an active trading market will develop.
• Promoter control remains high post-IPO: The Promoters will continue to hold a majority of the Equity Share Capital post-Offer.
• Regulatory dependency: The company operates in a highly regulated industry and is dependent on various environmental, health, and safety laws and regulations. Any changes or non-compliance could negatively impact operations.
• Seasonal demand volatility and dependence on monsoons: The agrochemical industry is seasonal, with demand influenced by agricultural cycles and the monsoon season. Unfavourable weather conditions or changes in rainfall patterns could impact sales and profitability.
• Historical corporate record gaps: The DRHP acknowledges certain historical corporate record gaps.
• Dependence on third-party transportation: The company relies on third-party transportation providers for raw material supply and product delivery, which are subject to various uncertainties and risks.
• Indebtedness: The company has incurred indebtedness, and its ability to comply with repayment and other covenants in its financing agreements is crucial.

Mini-wrap: Standard SME IPO risks with sectoral seasonality and regulatory uncertainties, suitable for high-risk, high-return investors.

Should You Invest in Indogulf Cropsciences IPO? Final Verdict

Indogulf Cropsciences IPO offers retail investors a chance to engage with an established agrochemical brand entering public markets at a time of heightened focus on farm productivity and self-reliance.

With a growing IP portfolio, improved capacity utilisation, and rising domestic agrochemical demand, the fundamentals appear encouraging.

That said, demand cyclicality, regulatory dependency, and promoter control remain overhangs worth factoring in.

Smart Play: Wait for final pricing, peer valuation multiples, and Anchor book data before committing.

FAQs About Indogulf Cropsciences IPO 2025

Q1: What is the total IPO size of Indogulf Cropsciences?

The IPO consists of a Fresh Issue of up to ₹1,600 million and an Offer for Sale of up to 3,603,603 Equity Shares.

Q2: When is the IPO likely to open?

The Bid/Offer Opening Date is Thursday, June 26, 2025, and the Bid/Offer Closing Date is Monday, June 30, 2025.

Q3: Where will the company list its shares?

A: On both NSE and BSE, with BSE as the Designated Stock Exchange.

Q4: What is the use of IPO proceeds?

A: Primarily for funding working capital requirements, repayment/pre-payment of certain outstanding borrowings, capital expenditure for a new DF plant, and general corporate purposes.

Q5: Should I invest in Indogulf Cropsciences IPO?

Depends on final pricing, demand momentum, and Anchor investor participation advisable for risk-tolerant investors only.