Crop Life Science Limited’s IPO, which opened on August 18, is set to close on August 22. The company, as described in the Red Herring Prospectus (RHP), specializes in agrochemicals, manufacturing, distributing, and marketing a variety of agrochemical formulations, including pesticides and micro-fertilizers such as insecticides, fungicides, herbicides, and weedicides.
In 2006, Crop Life Science secured a 99-year lease for approximately 5,831.10 square meters of land from the Gujarat Industrial Development Corporation (GIDC) for its manufacturing unit in GIDC Ankleshwar, Gujarat. Manufacturing of pesticides and micro-fertilizers commenced in the fiscal year 2006-07.
The subscription status of the Crop Life Science IPO as of day 2 is 2.18 times, with strong interest from retail investors, subscribing 3.78 times their portion, and non-institutional buyers subscribing at 58%. Bids have been received for 1,06,48,000 shares against the 5,140,000 shares on offer.
In the grey market, the IPO’s grey market premium (GMP) is currently at -4, indicating that shares are trading at a ₹4 discount compared to the issue price. Considering this GMP and the upper end of the price band, the estimated listing price of Crop Life Science Ltd shares is ₹48 each, which is 7.69% lower than the issue price of ₹52.
In recent trading sessions, Crop Life Science Ltd shares have been trading at their issue price with no premium or discount in the grey market. The GMP ranges from ₹-4 to ₹7, suggesting a discount listing is expected.
Crop Life Science IPO details include a price band of ₹52 per equity share with a minimum lot size of 2000 shares. The issue price is 5.2 times the face value of the equity share. The IPO comprises a fresh issue of 51.40 lakh equity shares amounting to ₹26.73 crore, with no offer for sale (OFS) component.
Proceeds from the IPO will be used to repay debt, meet long-term working capital requirements, and for general corporate purposes. Interactive Financial Services Ltd is the lead manager for the IPO, and Purva Sharegistry Pvt Ltd is the registrar.
The basis of allotment will be finalized on August 25, with refunds initiated on August 28. Shares are expected to be credited to the demat accounts of allottees on August 29, and they are likely to be listed on NSE SME on August 30.