GSP Crop Science Ltd’s initial public offering saw a subscription rate of 47% on its first day of bidding this past Monday. The company announced on Friday that it has raised ₹120 crore from anchor investors.
GSP Crop Science price band has been set at ₹304-320 per share, placing the company’s valuation at ₹1,489 crore at the upper end. GSP Crop Science IPO lot size is 46 equity shares and in multiples of 46 equity shares thereafter. The company’s ₹400-crore initial share sale will conclude on March 18.
GSP Crop Science is a research-driven agrochemical firm with more than 39 years of experience in creating and producing insecticides, herbicides, fungicides, and plant growth regulators in India.
GSP Crop Science IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.
Tentatively, GSP Crop Science IPO basis of allotment of shares will be finalised on Friday, March 20 and the company will initiate refunds on Monday, March 23 while the shares will be credited to the demat account of allottees on the same day following refund. GSP Crop Science share price is likely to be listed on BSE and NSE on Tuesday, March 24.
GSP Crop Science IPO GMP today
GSP Crop Science IPO GMP today is ₹0, which means shares are trading at their issue price of ₹320 with no premium or discount in the grey market, according to investorgain.com.
” indicates investors’ readiness to pay more than the issue price.
GSP Crop Science IPO details
At the upper end of the price range, the company aims to raise ₹400 crore. This figure includes a new share issuance of ₹240 crore along with an offer for sale () involving 50 lakh equity shares.
In the OFS, the promoters Vilasben Vrajmohan Shah, Bhavesh Vrajmohan Shah, and Kappa Trust will be divesting their shares.
If the company reaches the upper limit of the price range, GSP Crop Science’s market capitalization upon listing will be ₹1,488.6 crore.
Equirus Capital and Motilal Oswal Investment Advisors are acting as the lead managers for the book-running process, while MUFG Intime India is the registrar.
GSP Crop Science IPO subscription status
GSP Crop Science IPO subscription status was 47% on day 1, so far. The retail portion is subscribed 11%, and NII portion has been booked 28%, Qualified Institutional Buyers (QIBs) portion received 1.28x bids.
The company has received bids for 42,37,658 shares against 89,47,367 shares on offer, at 17:00 IST, according to data on BSE.
GSP Crop Science IPO review
Adroit Financial Services Private Ltd plans to use the funds from the offer to lower its debt, which is anticipated to enhance the financial standing and considerably decrease interest expenses. Over the past year, the firm has seen a notable rise in the proportion of its revenue derived from patented products, resulting in improved profit margins and bolstering the company’s return profile. Thus, it is advisable to “Subscribe” to the IPO for a long-term investment, given its growth prospects.
BP Equities stated that, overall, due to the consistent demand for crop protection products and its strategic emphasis on innovation and geographical growth, the company seems well-equipped to take advantage of new prospects in the global agrochemical sector in the medium to long term. At the upper price band, the issue is priced at a P/E ratio of 15.1x based on FY25 earnings, which appears to be reasonably valued. Therefore, the brokerage recommends a “SUBSCRIBE” rating for this issue.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.