Agrochemical manufacturer Crystal Crop Protection announced the share price band for its initial public offering (IPO) at Rs 259-272. The book-build issue opens for public subscription next week, and the company aims to raise Rs 456 crore via the offer.
Ahead of its opening, the company will also undertake a pre-IPO placement of Rs 84.2 crore, which shall be reduced from the fresh issue, the company said in its red-herring prospectus (RHP). Here are five details investors must know about the Crystal Crop Protection IPO.
Crystal Crop aims to raise Rs 455.49 crore through its IPO. This comprises a fresh component of Rs 354.77 crore, for which the company will issue 1.31 crore equity shares.
Ankur Aggarwal, chairman and managing director of Crystal Crop Protection, will offload 37.03 lakh shares worth Rs 100.71 crore through the offer for sale (OFS) route.
IIFL Capital Services, DAM Capital Advisors, and Motilal Oswal Investment Advisors are the merchant bankers for the IPO, while MUFG Intime India is acting as its registrar.
The crop solutions company will divert fresh proceeds worth Rs 247 crore towards the re-payment/pre-payment of its debt. According to its RHP, capital worth Rs 22 crore will be utilised for investment in the company’s material subsidiary, ‘Saffire Crop Science Private’; this also includes the repayment of borrowings availed by Saffire.
The balance amount will be deployed for funding the company’s growth initiatives and general corporate purposes. Crystal Crop will not receive any proceeds from the OFS.
To subscribe to Crystal Crop Protection IPO, retail investors need to bid for a minimum of one lot, comprising 55 shares, reflecting a transaction of Rs 14,960. The upper cap for them has been set at 13 lots. For small-high net worth investors, the lower limit is set at 14 lots, while maximum they can bid for is 66 lots.
Big-HNIs need to apply for a minimum of 67 lots, equating to an investment of Rs 10,02,230, in order to participate.
As per the latest update, the stock of Crystal Crop was trading in the unlisted markets at a premium of Rs 45, suggesting a likely listing price of Rs 317, based on the upper end of the price band. This reflects a 16.54% gain per share and a profit of Rs 2,475 per lot.
However, it is important to note that GMP is not an official metric to determine the listing price, and fluctuates based on market mood and sentiment.
Crystal Crop Protection’s IPO will open for public subscription on November 18 and close its bidding window on November 20. Anchor bidding will take place on November 17. Its share allotment process is expected to wrap up by November 23.
Participants are likely to be credited with their shares and refunds by November 25, and the company is expected to list on the BSE and NSE on November 26.