GSP Crop Science, an agrochemical company based in Gujarat, has filed draft papers with SEBI to launch an initial public offering (IPO). The IPO will include a fresh equity issuance worth Rs 280 crore and an offer-for-sale (OFS) of 60 lakh shares by its promoters.
Promoters Vilasben Vrajmohan Shah, Bhavesh Vrajmohan Shah, and Kappa Trust are the selling shareholders for the OFS, according to the draft red herring prospectus (DRHP) filed on December 20.
Pre-IPO Placement and Fund Utilization
The company proposes to mobilise Rs 56 crore through a pre-IPO placement. This shall be deducted from the fresh issue component, if the same is raised.
The proceeds from the fresh issue of equity would be utilised to the tune of Rs 200 crore towards debt repayment of the company and the remaining amount for general corporate purposes. As per the DRHP, GSP Crop Science’s total debt is Rs 428.3 crore, of which Rs 288.96 crore is fund-based borrowing.
The promoters stake currently stands at 98.25% while the remaining 1.75% is with public shareholders. GSP Crop Science, which started its activities in 1985 produces a gamut of various products such as insecticide, herbicide, Fungicide, and other plant growth regulators.
The company has 507 formulations and technicals of the agrochemical segment as registrations, with a granted portfolio of 89 patents and another 98 applications pending approval as on 20 December 2024. GSP competes with several listed agrochemical companies such as PI Industries, Sumitomo Chemical India, Dhanuka Agritech, Rallis India, Bharat Rasayan, India Pesticides, and Heranba Industries.
Equirus Capital and Motilal Oswal Investment Advisors were the book-running lead managers to the IPO.
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Source: Moneycontrol
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