IPO listed on 3 Jul'25
Indogulf Cropsciences Ltd
Minimum Investment
₹ 14,985 / 135 shares
Grey market premium
₹ 18 (16% premium)
Issue price
₹ 111
Listing price
₹ 111
Listing gains
0 (0%)
Listing on
3 Jul 2025
Our Verdict:
Neutral
- Indogulf Cropsciences Ltd (Indogulf) has shown modest growth between FY22-24, with a compound annual growth rate (CAGR) of 6% in operating revenue, 9% in EBITDA and 3% in net profit.
- However, from a valuation perspective, the IPO appears attractively priced with a P/E ratio of 9.25x based on FY24 earnings, which could offer some near-term upside.
- With low profit margins of 4-5% and limited financial strength, we do not foresee significant gains in the medium-to-long term unless there is a substantial improvement in financials.
- Given these factors, investors with a higher risk appetite may consider subscribing to the IPO for potential near-term gains, driven by attractive valuations. However, it is advisable to closely monitor the company’s performance over the coming quarters before considering any long-term investment decisions.
About the company
Founded in
22 Jan'93
Managing director
Sanjay Aggarwal
- Indogulf specializes in the manufacturing of crop protection products, plant nutrients and biologicals in India. The company is recognized as a “Two Star Export House” by the Government of India.
- Indogulf operates 4 state-of-the-art manufacturing facilities in Jammu and Kashmir and Haryana. As of April 30, 2025, it boasts a vast distribution network, including 192 institutional business partners (B2B) and 6,916 domestic distributors (B2C), supported by 17 stock depots and 6 sales/branch offices across India. Additionally, it works with 143 overseas business partners, facilitating product distribution in over 34 countries.
STRENGTHS
- Diverse Product Portfolio: Indogulf has broadened its product offerings, growing from 198 products in FY22 to 262 by December 31, 2024. The company currently holds 225 trademarks, 8 copyrights and 6 design registrations for its logo and branded products. Additionally, it has 150 valid product registrations across 17 countries.
- Backward Integration: Indogulf has strengthened its supply chain through backward integration, producing key raw materials and active ingredients in-house. This strategic move reduces costs and improves operational efficiency, supporting long-term growth and margin resilience.
- Strong R&D Capabilities: Indogulf’s in-house R&D capabilities are critical to its product diversification and operational efficiency. Its NABL-accredited R&D lab in Nathupur (Haryana) is ISO/IEC 17025:2017 certified, driving the development of new products and continuous process improvements aligned with global standards.
RISK FACTORS
- Underutilization of Manufacturing Capacity: Indogulf's aggregate capacity utilization was 49.58% in 9MFY25 and 46.13% in FY24. The under-utilization of manufacturing capacities, along with the inability to fully leverage expanded manufacturing capabilities, could negatively impact the business and financial performance.
- Trade Receivables: As of 9MFY25, trade receivables stand at Rs 228 crore, representing around 47% of gross operational revenue. Failure to collect receivables or defaults in payment from customers may impact profits and result in strained cash flows.
- Cash Flow Concerns: Indogulf has experienced negative cash flow from operations in 9MFY25, FY23 and FY22. Continued negative cash flows could jeopardize business continuity and financial stability.
- Contingent Liabilities: As of December 31, 2024, Indogulf reported contingent liabilities of Rs 38 crore, which, if materialized, could adversely affect its financial position.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 200 crore
Fresh Issue
₹ 160 crore
OFS
₹ 40 crore
Price range
₹ 105 - 111
Lot size
135 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for the following purposes:
- Funding the working capital requirements of the company;
- Prepayment or repayment of certain outstanding borrowings;
- Establishing an in-house dry flowable (DF) plant in Haryana; and
- General corporate purposes.
Dates
Bidding open
26 Jun'25
Bidding close
30 Jun'25
Allotment date
1 Jul'25
Refund date
2 Jul'25
Listing
3 Jul'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.