GSP Crop Science IPO: GMP to issue price - 7 things to know as Rs 400-cr agrochemical issue opens today

Another mainboard IPO is opening for bidding today – March 16. It is also the fifth mainboard issue of this month. GSP Crop Science, an agrochemical manufacturer, will open its subscription today, March 16. Now, before deciding whether to subscribe or not, there are a few key factors about the issue structure, pricing, financials and business operations that every investor need to know – Here are the key details of this mainboard issue – GSP Crop Science IPO: Subscription window and listing timeline This mainboard IPO will remain open for bidding for three days. Investors can place their bids from March 16 to March 18. Once the subscription window closes, the company is expected to finalise the share allotment by March 20. Thereafter, the shares of the company are likely to be listed on the stock exchanges on March 24. GSP Crop Science IPO: Issue structure and fund raising plan The total size of the IPO has been set at Rs 400 crore. The issue is a mix of fresh shares issued by the company and an offer for sale by existing shareholders. Talking of the fund utilisation, out of the total issue size, Rs 240 crore will come from the fresh issue of shares. In addition to this, Rs 160 crore will be raised through the offer for sale. Through this route, some promoter shareholders, including Vilasben Vrajmohan Shah, Bhavesh Vrajmohan Shah and Kappa Trust, will partially reduce their stake in the company. Funds raised through the fresh issue will mainly be used to reduce debt. The company has indicated that around Rs 170 crore will go towards repayment or prepayment of certain borrowings. The remaining portion of the proceeds will be utilised for general corporate purposes. GSP Crop Science IPO: GMP trend In the unofficial grey market appears muted for the issue. According to market trackers, the grey market premium (GMP) for the IPO is currently around Rs 0. However, it is important note the GMP is unofficial and fluctuates based on market sentiment. GSP Crop Science IPO: Price band and minimum investment The company has fixed the price band between Rs 304-320 per share for the public issue. Investors applying in the retail category will need to bid for a minimum lot of 46 shares. Based on the upper end of the price band, a retail investor will need to invest Rs 14,720 to apply for one lot. GSP Crop Science IPO: Business operations and global presence Founded more than four decades ago, the company operates in the agrochemical sector. It focuses on the manufacturing of products used in crop protection and plant growth. The portfolio of the company includes insecticides, herbicides, fungicides and plant growth regulators that are used by farmers to improve crop productivity. The company also works with several agrochemical firms in the domestic market. Some of its key customers include companies such as Bharat Rasayan, Dharmaj Crop Guard, Indogulf Cropsciences, Willowood Chemicals and Agrico Organics. GSP Crop Science IPO: Financial performance On the financial side, the company reported revenue from operations of Rs 1,152.16 crore in FY24. However, profitability improved during the same period. Profit after tax increased to Rs 61.29 crore in FY24, compared with Rs 21.55 crore in FY23. GSP Crop Science IPO: Book-running lead managers The IPO is being managed by Equirus Capital and Motilal Oswal Investment Advisors as the book-running lead managers. Meanwhile MUFG Intime has been appointed as the registrar to the issue.