GSP Crop Science IPO: 'Subscribe For Long-Term' Says Anand Rathi - Check Issue Details

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Anand Rathi Report

GSP Crop Science launched its initial public offering (IPO) on March 16 and the offer closes for subscription on March 18. An agrochemical company that manufactures insecticides, herbicides, fungicides, and other chemicals has fixed the price band in the range of Rs 304 and Rs 320 per share.

The GSP Crop Science IPO is a book build issue of Rs 400 crore. It comprises a fresh issue of 75 lakh shares worth Rs 240 crore and an offer-for-sale (OFS) of 50 lakh shares amounting to Rs 160 crore.

To participate in the IPO, retail investors need to bid for a single lot size of 46 shares, requiring an investment of Rs 14,720.

The shares of the company are scheduled to list on the BSE and NSE on March 24.

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

Objects of the Issue:

Repayment or pre-repayment of all or a portion of certain outstanding borrowings and general corporate purposes.

Valuation:

GSP Crop science is an agrochemical company engaged in the business of manufacturing insecticides, herbicides, fungicides and plant growth regulators. The company has developed a well-diversified portfolio across insecticides, herbicides, fungicides and plant growth regulators positions the company as a comprehensive agrochemical solutions provider.

The broad product mix enables it to cater to both B2B and B2C segments, supporting adaptability to evolving customer preferences and market dynamics.

On the valuation front, based on annualized FY26 earnings, the company is seeking a P/E of 9.2x times, and a post-issue market capitalization of approximately Rs 14,886 million, making the issue appears to be fully priced.

The second half of the fiscal is seasonally weaker for crop protection manufacturers, and rising raw material and freight costs amid Middle East tensions may pressure H2-FY26 margins.

While the company operates in a competitive and fragmented industry, its diversified portfolio and market positioning support long-term growth, Hence, we assign Subscribe-long Term rating for the issue.

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Anand Rathi Gsp Crop Ipo Note.pdf

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