Upcoming IPO: Agrochemical company GSP Crop Science files DRHP with Sebi

Ahmedabad-based agrochemical company GSP Crop Science is planning to go public, as it has filed its Draft Red Herring Prospectus (DRHP) with the capital markets regulator, the Securities and Exchange Board of India (Sebi). The Initial Public Offering (IPO) comprises a mix of a fresh issue of shares worth around Rs 280 crore, and 6 million equity shares offered by promoter selling shareholders, with a face value of Rs 10 apiece.

 

The offer for sale (OFS) consists of up to 2.65 million equity shares by Vilasben Vrajmohan Shah, up to 1.67 million equity shares by Bhavesh Vrajmohan Shah, and up to 1.67 million equity shares by Kappa Trust. The offer also includes a reservation for eligible employees, with a discount being offered to those bidding in the employee reservation portion.

 

 

The company, in consultation with the Book Running Lead Managers (BRLMs), may consider issuing specified securities aggregating up to Rs 56 crore as part of a pre-IPO placement. If the pre-IPO placement is completed, the amount raised will be deducted from the fresh issue, as stated in the DRHP.

 

The proceeds from the fresh issue, to the extent of Rs 200 crore, will be used for the repayment or prepayment of certain outstanding borrowings and for general corporate purposes, as outlined in the DRHP.

 

The offer is being made through the book-building process, with not more than 50 per cent of the net offer allocated to qualified institutional buyers, not less than 15 per cent to non-institutional investors, and 35 per cent to retail individual investors.

 

Link Intime India is the registrar for the issue. Equirus Capital and Motilal Oswal Investment Advisors are the book-running lead managers for the public offering of GSP Crop Science.

 

The equity shares, as proposed in the DRHP, are to be listed on the National Stock Exchange of India (NSE), and BSE.

 

GSP Crop Science is a research-focused agrochemical company with over 39 years of expertise in developing and manufacturing insecticides, herbicides, fungicides, and plant growth regulators in India. The company provides crop protection solutions that help farmers maximise productivity and agricultural output by producing formulations—precisely composed products combining active ingredients (chemicals targeting pests, weeds, or diseases) and additives (enhancing performance, stability, and usability)—and technicals, which are concentrated active ingredients used to create formulations. As of September 30, 2024, the company had secured 507 registrations across formulations and technicals for agrochemicals, supported by a strong focus on research and development.