In preparation for GSP Crop Science IPO, draft submitted to SEBI

GSP Crop Science IPO: Gujarat-based agrochemical company GSP Crop Science has recently filed a draft red herring prospectus (DRHP) with capital market regulator SEBI for its IPO (initial public offering). Under this IPO, the company will issue new equity shares worth Rs 280 crore, and there will also be an offer for sale (OFS) of 60 lakh shares by the promoters.

What is the IPO proposal of GSP Crop Science?

According to the DRHP filed on December 20, 2024, the company's promoters Vilasben Vrajmohan Shah, Bhavesh Vrajmohan Shah and Kappa Trust will put the shares up for sale under the offer for sale. Apart from this, GSP Crop Science plans to raise up to Rs 56 crore through pre-IPO placement before the launch of its IPO. If this happens, the size of the new equity shares may be reduced.

The company has set aside Rs 200 crore from the IPO proceeds to repay its outstanding debt, while the rest will be used for general corporate purposes. According to the DRHP, the company's current outstanding debt is Rs 428.3 crore, of which Rs 288.96 crore is fund-based debt.

Company structure and promoters' stake

Promoters hold 98.25 per cent stake in GSP Crop Science, while public shareholders hold a mere 1.75 per cent stake. The company's major competitors include major listed companies such as PI Industries, Sumitomo Chemical India, Dhanuka Agritech, Rallis India, Bharat Rasayan, India Pesticides and Heranba Industries.

History and product portfolio of GSP Crop Science

GSP Crop Science was founded in 1985. It has made its mark in the field of agrochemicals and its product portfolio includes insecticides, herbicides, fungicides and plant growth regulators. The company has secured 507 registrations for agrochemicals and holds 89 patents. In addition, the company has 98 patent applications pending as of December 20, 2024.

Book Running Lead Managers for IPO

Equirus Capital and Motilal Oswal Investment Advisors have been appointed as book running lead managers for the public issue of GSP Crop Science.

Conclusion

The IPO of GSP Crop Science can be an important opportunity for Indian investors, especially considering the growing market of this company which has strengthened its position in the agrochemical sector. The company's IPO is not only important for repaying the debt, but it can also shape its growth direction. In such a situation, investors can understand this opportunity and become a part of the company's upcoming IPO.