Indogulf Cropsciences Shares Fall 5% on Second Day of Trading After Bulk Deal

Indogulf Cropsciences witnessed a decent fall on Friday, July 4, as a significant portion of its shares changed hands through a bulk deal on Thursday, July 3, which also marked the first day of its listing on the indian stock exchanges.

Stock Movement

Indogulf Cropsciences shares traded lower on July 4, slipping below 3% to Rs 107.40 at 1 PM. The stock had closed at Rs 110.35 on its first day of listing. Today, it opened at Rs 106 and reached a high of Rs 107.80. By 12:30 PM, the stock was down by 5%.

The company made its stock market debut on July 3, listing at Rs 111 per share on both the BSE and NSE, the same as its issue price. However, after a flat opening, the stock saw little buying interest and ended the day near its listing price.

Indogulf Cropsciences Bulk Deal

After making its debut on the stock market, Indogulf Cropsciences carried out its first major transaction by selling 3.79 lakh shares to Rajasthan Global Securities. They also sold an equal number of shares to AU Small Finance Bank and South Indian Bank, with each transaction priced at Rs 111-Rs 111.17 per share.

Additionally, Satish Singhal bought 3.6 lakh shares at Rs 111 each, according to NSE bulk deal data.
This series of bulk deals marked the beginning of significant trading activity for the company following its stock market listing.

Indogulf Cropsciences Listing

Indogulf Cropsciences' IPO listing did not meet expectations, as both analysts and the grey market premium (GMP) pointed to a modest opening. Analysts had hoped for listing gains of around 8-10%, while the GMP before the listing on July 3 suggested a premium of about 16%. However, the stock didn't perform as well as anticipated.

The company went public at a time when India's agricultural sector is undergoing significant changes. This transformation has led to mixed opinions from brokerage firms about whether to include the company in investment portfolios.

Canara Bank Securities had recommended subscribing to the IPO for long-term growth but also advised caution due to the seasonal nature of the business. They also pointed out that the IPO is priced lower than its competitors, with a price-to-earnings (PE) ratio of 9 times and price-to-book (PB) ratio of 1.

On the other hand, analysts at Anand Rathi Research gave a "Subscribe" rating to the IPO, highlighting the company's stable financials, strong manufacturing capabilities, and diverse product offerings. While they acknowledged the company's potential for long-term growth, they also pointed out that it operates in a cyclical industry, heavily dependent on agricultural policies and the growing trend of organic farming.

Indogulf Cropsciences IPO Details

Indogulf Cropsciences launched its IPO on Thursday, June 26. The subscription period for the IPO ended on Monday, June 30, and the allotment of shares was announced on July 1. The shares officially began trading on the stock exchanges on July 3, with listings on both the BSE and NSE.

The IPO, worth Rs 200 crore, was oversubscribed by nearly 26 times. The price range for the IPO was Rs 105 to Rs 111 per share.

About Indogulf Cropsciences

Founded in 1993, Indogulf Cropsciences is a well-known Indian company in the agrochemical industry. It manufactures and markets a wide range of crop protection products, plant nutrients, and biologicals in India. Its products come in multiple formulations such as powders, granules, and liquids, serving a variety of crops including cereals, pulses, oilseeds, and fruits.

The company has four manufacturing plants in Jammu & Kashmir and Haryana, covering about 20 acres. It sells products across 22 states and 3 Union Territories in India, with a large network of distributors and partners in 34 countries. Its flexible factories can make various products, and the company benefits from high industry regulations that limit competition.

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