Incorporated in 1993, Indogulf Cropsciences is engaged in the business of manufacturing of crop protection products, plant nutrients and biologicals in India. It has, over the span of three decades, diversified its product portfolio and have grown into multi-product manufacturer of crop protection, plant nutrients and biologicals in India. Its product portfolio has expanded from 198 products in fiscal 2022 to 262 products in December 31, 2024, consisting of products that it manufacture using in-house innovative processes, which enable it to cater to a wide range of customers in domestic and international markets. The company currently had 225 trademarks, eight copyrights and six design registrations for its logo and branded products and has 150 valid product registrations across 17 foreign countries. Further it has applied for 110 trademarks. It is also a growing exporter of crop protection, plant nutrients and biologicals products and exported products to over 34 countries. It has been recognised as a ‘Two Star Export House’ by Government of India.

The company currently has four manufacturing facilities including formulation, technical and fertilizer plants having international quality standards located in Samba, Jammu and Kashmir; Nathupur - I, Haryana; Nathupur - II, Haryana; and Barwasni, Haryana, collectively, spread across approximately twenty acres with an effective installed capacity of 19295 tonne. Its manufacturing facilities are ISO 9001: 2015 and ISO 14001: 2015 certified, for quality management system and environment management system. Samba, Jammu and Kashmir plant has a capacity of 3130 tonne while Nathupur - I, Haryana plant has a capacity of 10125 tonne, Nathupur- II, Haryana plant has a capacity of 1020 tonne and Barwasni, Haryana plant has a capacity of 5020 tonne.

The company sell its products in water dispersible granules, suspension concentrate, powder and liquid form to customers. The four manufacturing facilities having an aggregate installed capacity of 19,620 KL for liquid suspension concentrate, 27,930 MT for granules and 1,980 MT for powder, as on April 30, 2025. The technical plant has aggregate capacity of 1,360 TPA for production of insecticides, fungicides and herbicides, as on April 30, 2025. Each of its manufacturing facilities has the ability to manufacture a wide range of products and products can be inter-changed to address the requirements of customers.

The company primarily operate under three business verticals namely crop protection, plant nutrients and biologicals, to retail and institutional customers focused on improving the crop yield. Crop protection formed 90.15% of total revenues in 9MFY2025 while plant nutrients formed 3.93% and biologicals formed 5.92%. It manufacture and market extensive range of products in all types of available formulations such as water dispersible granules (WDG), suspension concentrate (SC), capsule suspension (CS), ultra low volume (ULV), emulsion in water (EW), soluble granule (SG), flowable suspension (FS), etc. which can be in powder, granules and liquid form to its customers. Its diverse product portfolio caters to a broad spectrum of crops, including cereals, pulses and oilseeds, fibre crops, plantations, and fruits and vegetables. The products are designed to improve crop yield while promoting sustainable agriculture and environmental stewardship.

Plant nutrients are aimed at enhancing the soil fertility, stimulate root development and boost crop yields. It manufactures various types of speciality fertilizers, deficiency corrector, and micronutrients under this vertical. These products are designed to strengthen the plants and enhance their yields.

Crop Protection Products refers to the various practices, techniques, and strategies employed to safeguard crops from pests, diseases, weeds, and other threats, thereby ensuring their healthy growth, development, and productivity. It aims to minimize yield losses and maintain crop quality while minimizing negative environmental impacts. Under this vertical, it manufactures and offers a variety of insecticides, fungicides, herbicides and plant growth regulators. Crop protection products also include technical synthesis andspecial formulations.

Biologicals empower farmers with a comprehensive approach to crop management, offering novel solutions to combat pests and diseases, build resilience against abiotic stress, and unlock improved nutrient use efficiency. It also mitigates the impact of environmental stresses, and optimize nutrient uptake and soil well-being, driving progress toward a more sustainable food system ultimately leading to more resilient and sustainable agricultural practices.

The company has a pan-India sales and dealer presence in 22 states and three Union Territories in India and over 34 countries outside India. As of April 30, 2025, it distribute its products through its distribution network comprised of 192 institutional business partners (b2b), 6,916 working domestic distributors (b2c), supported by 17 stock depots and 6 sales/branch offices supporting the distribution of its products in India and 143 overseas business partners optimizing product distribution in over 34 countries.

The key raw materials that it use in manufacturing operations include, among others, 3 Methyl 4 Nitro Iminoperhydro 1,3,5 Oxadiazine (MNIO), 2-Chloro-5-Chloro Methyl Thiazole (CCMT), Glyphosate Tech., CIX, 3-BROMO-1-(3-CHLOROPYR-2-YL)-1H-PYRAZOLE-5-CARBO ACID (BPCA) in technical Thiomethoxam, Bifenthrin, Pretilachlor, Lambda Cyhalothrin, seaweed, potassium humate, ferasulphute, zinc sulphate in formulation. It primarily source the raw materials for manufacturing process through both its internal backward integration and external suppliers in India and globally.

The company has two subsidiaries, IndogulfCropsciences Australia Pty Ltd located in Australia and Abhiprakash Globus Private Limited located in India. IndogulfCropsciences Australia Pty Ltd helps it to get registrations in the countries which required OECD registered products and Abhiprakash Globus Private Limited facilitates to expand its market reach, drive growth, and open new avenues for business development in domestic as well as overseas markets while optimizing resource use and fostering healthy competition

Om Prakash Aggarwal, Sanjay Aggarwal, Anshu Aggarwal and Arnav Aggarwal are the promoters of the company.

The Offer and the Objects

The offer comprises of fresh issue of up to 14414414 equity shares at the upper price band of Rs 111 and 15238095 equity shares at the lower price band of Rs 105 aggregating Rs 160 crore and an offer for sale up to 3603603 equity shares aggregating Rs 40 crore at the upper price band of Rs 111 and Rs 38 crore at the lower price band of Rs 105.

The company proposes to utilise the net proceeds from the issue towards funding working capital requirements of the company amounting Rs 65 crore, repayment/ prepayment, in full or in part, of certain outstanding borrowings availed by the company amounting Rs 34.117 crore, capital expenditure of the company for setting up an in-house dry flowable (DF) plant at Barwasni, Sonipat, Haryana amounting Rs 14 crore and the balance towards general corporate purposes. Dry flowable formulation is a type of pesticide formulation where the active ingredient is finely ground and mixed with inert materials to create a dry, free-flowing powder

As on April 30, 2025, the company had a total sanctioned limit of working capital facilities of Rs 264.075 crore on a standalone basis. Further it had outstanding borrowings of Rs 256.821 crore ona consolidated basis.

The total estimated cost of funding the purchase of new equipment and machinery and availing services to set up the DF Plant is Rs 14 crore

Promoter group Om Prakash Aggarwal (HUF) post offer shareholding will decrease to 0% from pre offer shareholding of 3.16% while promoter group Sanjay Aggarwal (HUF) post offer shareholding will decrease to 0.4% from pre offer shareholding of 4.74%

Strengths

The company has 138 products in the pipeline for registration in domestic and overseas, and 17 products under manufacturing. In addition, its diversified product portfolio allows for limited dependence on individual products, helps counter seasonal trends and addresses different business cycles across industries where its products are used. Further, its leadership position in key products offers advantages such as cost efficiency due to economies of scale, competitive product pricing, ability to scale its business, ensure customer loyalty and expand product pipeline into new end-uses.

The company facilities are multi-purpose that are designed to allow a level of flexibility enabling it to manufacture a diverse range of products and provide it with the ability to modify and customize its product portfolio to address the changing requirements of customers.

The company facilities enjoy close proximity to agricultural states such as Haryana, Jammu and Kashmir, Punjab, Uttar Pradesh, Rajasthan and Uttarakhand. its facilities are strategically situated near Delhi, a major transportation hub with access to highways, dry ports, and airports. This strategic positioning ensures seamless connectivity and efficient logistics operations, facilitating timely and cost-effective transportation of raw materials and finished goods.

The company has adopted backward integration to strengthen supply chain control, lower costs, and boost operational efficiency by producing key raw materials and active ingredients in-house. This supports its long-term growth strategy and enhances margin resilience.

The company has developed strong in-house R&D capabilities, integral to its product diversification and manufacturing efficiency. Its dedicated NABL accredited R&D laboratory, located at the Nathupur (Haryana) facility, is certified under ISO/IEC 17025:2017, supporting the development of new products and process improvements aligned with global regulatory standards.

The production of agri-inputs in India increased at a CAGR of 16.4% from 689 thousand tonnes in 2019 to 1,354 thousand tonnes in 2024. Pesticides constituted almost 57% share in overall agri-inputs production and are projected to grow by CAGR 3.6% during the period, 2024-2029. The usage of pesticides has been increasing over the years. The demand is driven by the country’s agricultural activities. Insecticides, fungicides, and herbicides are generally used for pest control in agriculture. In order to protect the crop from losses due to pests, farmers employ these chemical substances. Further, the overall agri-inputs production during the forecast period 2024-2029 is projected to grow with a CAGR of 6.9% on account of rising demand for agricultural use.

The demand for nutrition & crop protection chemicals across different applications in India is going to grow swiftly on account of rapid population growth, increased pest infestations, and decreased crop yields. Whereas the demand for cereals and grains is expected to grow at a good pace over the years at a CAGR of 9.5% during the forecast period, 2024-2029. On the other hand, the demand for fresh fruits & vegetables and oilseed & pulses is projected to grow with a CAGR of 10.1% and 10.7%, respectively, during the same period.

Weaknesses

The company is subject to regular inspections and audits, and the success and wide acceptability of its products is largely dependent upon quality controls and standards.

The agrochemicals industry is capital intensive. It require a substantial amount of capital and will continue to incur significant expenditure in maintaining and growing its existing infrastructure, purchase equipment and develop and implement new technologies in new and existing manufacturing facilities

The company had reported negative cash flows from operating activities in the past and may, in the future, experience negative cash flows.

The company business is sensitive to weather conditions such as drought, floods, cyclones and natural disasters, as well as events such as pest infestations.

The company is required to obtain and/or renew certain registrations from the Central Insecticides Board and Registration Committee (CIB&RC) for its products manufactured in India. It also register its products in overseas jurisdictions through International Distribution Partners to enable exports to such countries. Any failure to successfully registerproducts in India or in the international markets may affect results of operations and financial condition.

The company is required to obtain, renew or maintain statutory and regulatory permits, licenses and approvals to operate its business and manufacturing facilities, and any delay or inability in obtaining, renewing or maintaining such permits, licenses and approvals could result in an adverse effect on results of operations.

The company operate in a hazardous industry and is subject to certain business and operational risks consequent to its operations, such as, the manufacture, usage and storage of various hazardous substances

Alternative plant supplements and crop protection measures, such as, biotechnology products, pest resistant seeds or genetically modified crops may reduce the demand of its products

The company manufacturing facilities are concentrated in the northern region of India and the inability to operate and grow its business in other regions may have an adverse effect on business, financial condition, results of operations, cash flows and future business prospects.

The company face competition from both domestic as well as multinational corporations and its inability to compete effectively could result in the loss of customers, therefore, its market share, could have an adverse effect on its business, results of operations, financial condition and future prospects.

Valuation

Net sales increased 12% to Rs 464.19 crore in 9M FY2025 compared to 9M FY2024. The OPM fell 10 bps to 9.4%, leading to 11% increase in operating profit to Rs 43.44 crore. OI increased 37% to Rs 2.12 crore. Interest cost rose 7% to Rs 10.37 crore. Depreciation cost went down 8% to Rs 7.14 crore. PBT was up 21% to Rs 28.05 crore. Tax expenses rose 169% to Rs 7.71 crore. As a result, net profit jumped 42% to Rs 21.68 crore.

Net sales remained flat at Rs 552.23 crore in FY2024 compared to FY2023. The OPM improved 190 bps to 10.8%, leading to 22% improvement in operating profit to Rs 59.41 crore. OI increased 40% to Rs 3.55 crore. Interest cost rose 11% to Rs 12.95 crore. Depreciation cost went up 7% to Rs 10.31 crore. PBT rose 32% to Rs 39.71 crore. Tax expenses were down 1% to Rs 7.81 crore. As a result, net profit increased 26% to Rs 28.23 crore.

The TTM EPS on post-issue equity works out to Rs 5.5. At the upper price band of Rs 111, TTM P/E is 20.

As of 24 June 2025, its listed peers such as Aries Agro trades at TTM P/E of 12, Basant Agro Tech India trades at TTM P/E of 14, Best Agrolife trades at TTM P/E of 39, Bhagiradha Chemicals & Industries trades at TTM P/E of 173, Heranba Industries trades at TTM P/E of 27, India Pesticides trades at TTM P/E of 39 and Dharmaj Crop Guard trades at TTM P/E of 30

For FY2024, IndogulfCropsciencesEbitda margin and ROE stood at 10.1% and 12.% compared to 10.7% and 7.1% for Aries Agro respectively, 6.1% and 2.3% for Basant Agro Tech India, 12.1% and 16.4% for Best Agrolife, 10.5% and 4.4% for Bhagiradha Chemicals & Industries, 6.1% and 4.1% for Heranba Industries, 12.7% and 7.3% for India Pesticides and 9.6% and 12.4% for Dharmaj Crop Guard