New Delhi, March 13 Agrochemical Company GSP Crop Science Ltd announced on Friday that it had raised Rs 120 crore from anchor investors before the opening of its initial public offering (IPO) next week.
The entities that participated in the anchor round are Shine Star Build Cap Pvt Ltd, Craft Emerging Market Fund PCC-Citadel Capital Fund, and Craft Emerging Market Fund PCC-Elite Capital Fund, according to a circular uploaded on BSE's website.
According to the circular, the company informed the bourses that it allocated 37.50 lakh equity shares at Rs 320 per share to anchor investors.
The company's initial share sale of Rs 400 crore will open for public subscription on March 16 and conclude on March 18.
The price band has been fixed at Rs 304-320 per share for the IPO, valuing the company at Rs 1,489 crore at the higher end.
The Ahmedabad-based company's initial public offering (IPO) consists of a fresh issue of shares worth Rs 240 crore and an Offer For Sale (OFS) of 50 lakh equity shares valued at Rs 160 crore at the upper end by promoters, aggregating Rs 400 crore.
Proceeds from the fresh issue, totaling Rs 170 crore, will be used for debt payment, and a portion will be utilized for general corporate purposes.
The agrochemical firm will make its stock market debut on March 24.
GSP Crop Science is a research-focused agrochemical company with over 39 years of expertise in developing and manufacturing insecticides, herbicides, fungicides, and plant growth regulators in India.
It provides crop protection solutions that help farmers maximize productivity and agricultural output by producing formulations— precisely composed products combining active ingredients (chemicals targeting pests, weeds, or diseases) and additives (enhancing performance, stability, and usability) and Technicals, which are concentrated active ingredients used to create formulations.
As of September 30, 2024, the company had secured 507 registrations across Formulations and Technicals for manufactured agrochemicals, supported by a robust focus on research and development.
GSP Crop Science operates four manufacturing facilities located in Ahmedabad (Odhav and Kathwada), Vadodara (Nandesari), and Samba (Jammu & Kashmir), with a combined annual installed capacity of 15,120 MTPA for Technicals and 43,672 MTPA for Formulations.
On the financial front, the company's revenue from operations stood at Rs 1,152.16 crore in fiscal 2024 as compared to Rs 1,203.31 crore in the preceding fiscal. Profit after tax surged to Rs 61.29 crore in fiscal 2024 from Rs 21.55 crore in fiscal 2023.
For the six months ended September 30, 2024, revenue from operations stood at Rs 703.46 crore, and profit after tax at Rs 65.87 crore.
According to the company, half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.
Equirus Capital and Motilal Oswal Investment Advisors are the book-running lead managers of the issue.