Indogulf Cropsciences Ltd, a manufacturer of crop protection products, plant nutrients, and biologicals, has filed preliminary papers with capital markets regulator Sebi to raise funds through an Initial Public Offering (IPO).
The Delhi-based company's IPO is a mix of fresh issues of up to Rs 200 crore and an Offer For Sale (OFS) of up to 38.55 lakh equity shares by selling shareholders. The offer also includes reservations for eligible employees, according to the Draft Red Herring Prospectus (DRHP).
The OFS comprises the sale of 15.41 lakh equity shares by Om Prakash Aggarwal (HUF) and 23.14 lakh equity shares by Sanjay Aggarwal (HUF).
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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 payment of debt, Rs 14 crore for setting up an in-house dry flowable plant at Barwasni Sonipat, Haryana; and a portion will be used for general corporate purposes, as per the draft papers filed on Wednesday.
Founded in 1993, Indogulf Cropsciences operates in three business segments -- crop protection, plant nutrients, and biological products offering solutions to the retail and institutional customers to enhance crop productivity.
Currently, the company has four manufacturing units --one in Jammu and Kashmir and three in Haryana. Also, it has two wholly-owned subsidiaries -- Indogulf Cropsciences Australia Pty Ltd at Sydney, Australia and the other, Abhiprakash Globus Private Ltd in Delhi.
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The company has a sales and distribution network in 22 states and 3 Union Territories in India and more than 34 countries across the world.
On the financial front, Indogulf Cropsciences' revenue from operations increased to Rs 552.23 crore in fiscal 2024 from Rs 549.66 crore in fiscal 2023 and profit after tax rose to Rs 28.23 crore for fiscal 2024 from Rs 22.42 crore in the preceding fiscal.
Systematix Corporate Services Ltd is the sole book-running lead manager to the issue.
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