New Delhi: Agrochemical Company GSP Crop Science Ltd has filed preliminary papers with the capital markets regulator SEBI to raise funds through an Initial Public Offering (IPO). The IPO of the Ahmedabad-based company is a mix of fresh issues of shares worth Rs 280 crore and an Offer For Sale (OFS) of 60 lakh equity shares by promoters, according to the Draft Red Herring prospectus (DRHP). The offer also includes a reservation for a subscription by employees. The company may consider raising Rs 56 crore as pre-IPO placement. The company will reduce the size of fresh issues if such placement is complete.
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GSP Crop Science's IPO Includes Fresh Issue and OFS; Funds to Reduce Debt, Expand Operations.
As per the draft papers filed on Friday, proceeds from the fresh issue to the tune of Rs 200 crore will be used for debt payment, and a portion will be utilized for general corporate purposes. 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.
GSP Crop Science Reports Strong Profit Growth in FY24 Despite Revenue Dip
As of September 30, 2024, the company had secured 507 registrations across Formulations and Technicals for agrochemicals manufactured, 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.
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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. Equirus Capital and Motilal Oswal Investment Advisors are the book-running lead managers of the issue.
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