GSP Crop Science IPO Update: Issue Sees 96% Subscription on Third Day

GSP Crop Science IPO Update

Key Highlights

• The GSP Crop Science IPO has seen a 96% subscription on the second day of bidding.
• The company has secured ₹120 crore from anchor investors.
• The IPO price band is set at ₹304-320 per share, resulting in a valuation of ₹1,489 crore at the upper limit.
• The IPO lot size is set at 46 equity shares, and applicants may apply in multiples of 46 shares thereafter.

IPO Details

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• The ₹400-crore initial share sale will be concluded on March 18.
• The company has set aside 50% of the shares in the public offering for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Investors.
• The preliminary basis of allotment for the GSP Crop Science IPO shares is expected to be determined on Friday, March 20, with the company starting refunds on Monday, March 23.
• Shares will be credited to the demat accounts of allottees on the same day as the refunds.
• GSP Crop Science shares are to be listed on the BSE and NSE on Tuesday, March 24.

Market Analysis

• SBICAP Securities has assigned a NEUTRAL rating to the IPO, citing higher valuation compared to domestic market-focused peers.
• Adroit Financial Services Private Ltd intends to utilize the proceeds from the offering to reduce debt, which is expected to improve its financial position and significantly lower interest costs.
• BP Equities has assigned a SUBSCRIBE rating to the issue, citing steady demand for crop protection products and the company's focus on innovation and geographical expansion.
• Swastika Investmart has assigned an AVOID rating to the issue, citing lower valuation compared to competitors and a weak overall market.

Subscription Status

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• The retail portion is subscribed 20%, and NII portion has been booked 2.33 times, QIBs portion received 1.28x bids.
• The company has received bids for 86,04,898 shares against 89,47,367 shares on offer, at 17:00 IST, according to data on BSE.