GSP Crop Science IPO opens today; should you apply? Here's what brokerages say

Ahead of the issue opening, agrochemical company GSP Crop Science raised ₹120 crore from two anchor investors. Mauritius-based Craft Emerging Market Fund PCC was the largest investor in the anchor book, purchasing nearly 25 lakh shares through two investment vehicles - Citadel Market Fund and Elite Capital Fund - for ₹80 crore. Shine Star Build Cap was the other anchor investor, acquiring 12.5 lakh shares worth ₹40 crore.

By Meghna Sen

The initial public offering (IPO) of agrochemical company GSP Crop Science will open for subscription on Monday, March 16, and close on March 18.

Ahead of the issue opening, the company raised ₹120 crore from two anchor investors on March 13.

Mauritius-based Craft Emerging Market Fund PCC was the largest investor in the anchor book, purchasing nearly 25 lakh shares through two investment vehicles - Citadel Market Fund and Elite Capital Fund - for ₹80 crore.

Shine Star Build Cap was the other anchor investor, acquiring 12.5 lakh shares worth ₹40 crore.

Should you apply?

Brokerage firm SBI Securities has assigned a ‘Neutral’ rating to the IPO, stating that it would prefer to monitor the company's performance for a few quarters after listing.

At the upper end of the price band, the IPO is valued at 18.3x FY25 P/E, which the brokerage said is at a premium compared with peers that are primarily focused on the domestic market.

It also noted that the second half of the fiscal year is seasonally weaker for crop protection chemical manufacturers. In addition, the recent rise in raw material and freight costs due to the ongoing Middle East conflict may impact the company's performance in the fourth quarter of FY26.

Moreover, the 2026 monsoon is expected to be weaker than last year due to the possible development of El-Nino conditions. This could impact crop acreage and, in turn, affect demand for insecticides, herbicides, and fungicides.

Meanwhile, Ventura Securities highlighted the company’s diversified agrochemical portfolio across insecticides, herbicides, fungicides, and plant growth regulators as a key strength. The brokerage said strong in-house research and development, extensive product registrations, and integrated manufacturing facilities support innovation, scale, and long-term customer relationships.

However, it also cautioned that the company’s operations remain exposed to regulatory approval risks for agrochemical registrations and compliance requirements. Dependence on raw material suppliers and volatile input costs could also pressure margins and disrupt manufacturing operations. Despite these risks, Ventura Securities has maintained a ‘Subscribe’ rating on the issue.

GSP Crop Science IPO: Price band

The company has fixed the price band at ₹304-₹320 per equity share. Investors can bid for a minimum of one lot of 46 shares and in multiples thereafter.

At the upper end of the price band, the company aims to raise ₹400 crore.

GSP Crop Science IPO: Structure

The IPO comprises a fresh issue of shares worth ₹240 crore and an offer for sale (OFS) of 50 lakh equity shares.

Under the OFS, promoters Vilasben Vrajmohan Shah, Bhavesh Vrajmohan Shah, and Kappa Trust will sell part of their holdings.

At the upper end of the price band, GSP Crop Science will have a post-listing market capitalisation of ₹1,488.6 crore.

Of the total issue size, 50% has been reserved for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors.

The company had filed its draft papers for the IPO in November 2024 and received approval from the Securities and Exchange Board of India in the last week of March 2025.

Under regulatory norms, a company must launch its IPO within one year of receiving SEBI’s observations. The validity of the approval is set to expire this month.

Compared with the details in the draft red herring prospectus, the company has reduced the fresh issue size from ₹280 crore and the OFS component from 60 lakh shares.

GSP Crop Science IPO: Objective

GSP Crop Science, which manufactures insecticides, herbicides, fungicides, and plant growth regulators, will use ₹170 crore from the fresh issue proceeds to repay debt, while the remaining funds will be allocated for general corporate purposes. Proceeds from the OFS will go to the selling shareholders.

The company said its outstanding borrowings stood at ₹478.8 crore as of December 2025, of which ₹282.7 crore were fund-based.

As of September 2025, the company had secured 524 registrations across agrochemical formulations and technicals and had been granted 102 patents. It also has 108 patent applications currently under process.

The company competes with several listed peers, including PI Industries, Sumitomo Chemical, Dhanuka Agritech, Rallis India, Bharat Rasayan, India Pesticides, Excel Industries, and Heranba Industries.

Financially, the company has posted steady growth in recent years. Profit for FY25 stood at ₹83.4 crore, rising 36% from ₹61.3 crore in the previous year. Revenue during the same period increased 11.7% to ₹1,287.4 crore from ₹1,152.2 crore.

For the six-month period ended September 2025, the company reported a profit of ₹82.7 crore on revenue of ₹844.2 crore.

Equirus Capital and Motilal Oswal Investment Advisors are the book-running lead managers to the issue, while MUFG Intime India is the registrar.

The basis of allotment is expected to be finalised on March 20. The company's equity shares are scheduled to list on the Bombay Stock Exchange and the National Stock Exchange of India on March 24.

Note To Readers

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.