The Ahmedabad-based crop protection company is raising Rs 400 crore. Issue opens March 16, closes March 18.
GSP Crop Science Limited, an Ahmedabad-based agrochemical company with over four decades in the business, opens its IPO for subscription on Monday, March 16, and closes on Wednesday, March 18. Originally incorporated in 1985 as Gujarat Superphosphate Industries, the company has evolved into a research-driven manufacturer of insecticides, herbicides, fungicides, and plant growth regulators, with 524 product registrations, 102 granted patents, and 108 more patent applications in process.
It operates five manufacturing facilities across Gujarat and Jammu and Kashmir, serves customers across 20 Indian states, and exports to 37 countries including the USA, Brazil, Uruguay, Vietnam, Singapore, and the UAE. Listing is expected on March 24 on BSE and NSE.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | March 16, 2026 |
| Issue Closes | March 18, 2026 |
| Price Band | Rs 304 – Rs 320 per share |
| Issue Size | Rs 392 – Rs 400 crore |
| Fresh Issue | Rs 240 crore |
| Offer for Sale | 50,00,000 shares (Rs 160 crore at upper band) |
| Face Value | Rs 10 per share |
| Bid Lot | 46 shares and multiples thereof |
| Minimum Investment (Retail) | Rs 14,720 (at upper band) |
| Post-Issue Market Cap | Rs 1,426 – Rs 1,489 crore |
| QIB / NII / Retail Split | 50% / 15% / 35% |
| BRLMs | Equirus Capital, Motilal Oswal Investment Advisors |
| Registrar | MUFG Intime India |
| Listing | BSE and NSE |
| Allotment | March 20, 2026 |
Objects of the Issue
Of the Rs 240 crore fresh issue proceeds, Rs 170 crore will go toward repayment or prepayment of outstanding borrowings. The balance is for general corporate purposes. The offer for sale proceeds will go to the promoter selling shareholders — Vilasben Vrajmohan Shah, Bhavesh Vrajmohan Shah, and Kappa Trust — and will not flow to the company.
What the Company Does
GSP operates across two distinct business lines — Formulations and Technicals. Formulations, which contributed 70.56% of product revenue in FY25, are the finished crop protection products sold directly to farmers and traders under brands including Platform, Raavan, Afford, Liger, Fighter, and Runway, among others. Technicals are concentrated active ingredients sold on a B2B basis to other agrochemical manufacturers. The company is among the first indigenous manufacturers of several key technicals including Chlorantraniliprole, Clothianidin, Pymetrozine, and Azoxystrobin.
Insecticides dominate the product mix at 63% of revenue in FY25, followed by fungicides at 13.24% and herbicides at 17.53%. Domestic revenue accounts for around 89% of the total, with international contributing the remaining 11%. No single customer dominates — the top ten customers contributed just 19% of FY25 revenue, reflecting a well-diversified client base.
The company has a dedicated R&D centre at its Odhav facility in Ahmedabad, with a staff of 35 researchers, five of whom hold PhDs. Revenue from patented products amounted to Rs 143.68 crore in H1 FY26, representing 17.1% of total product sales during the period.
Financials
| Particulars (Rs crore) | FY23 | FY24 | FY25 | H1 FY26 |
|---|---|---|---|---|
| Revenue from Operations | 1,203.31 | 1,152.16 | 1,287.39 | 844.29 |
| EBITDA | 81.28 | 130.41 | 164.03 | 138.86 |
| EBITDA Margin | 6.75% | 11.32% | 12.74% | 16.45% |
| PAT (Continuing Operations) | 17.57 | 55.54 | 81.42 | 81.07 |
| PAT Margin | 1.46% | 4.80% | 6.26% | 9.56% |
| EPS — Basic (Rs) | 4.20 | 13.49 | 21.20 | 21.22* |
| RoE | 4.79% | 15.00% | 18.38% | 15.62%* |
| RoCE | 9.00% | 18.91% | 19.80% | 15.45%* |
| Net Worth | 363.47 | 370.46 | 450.03 | 529.85 |
| Total Borrowings | 324.26 | 235.44 | 295.60 | 321.13 |
*not annualised
The financial trajectory is the standout feature of this business. EBITDA margins have expanded from 6.75% in FY23 to 16.45% in H1 FY26, while PAT margins have gone from 1.46% to 9.56% over the same period. Revenue dipped in FY24 but has since recovered, with H1 FY26 already at Rs 844 crore against full-year FY25 of Rs 1,287 crore — suggesting an acceleration in the second half. Debt stood at Rs 321 crore as of September 2025, which will come down materially post-IPO with Rs 170 crore earmarked for repayment.
Valuation and Peer Comparison
| Company | Revenue FY25 (Rs cr) | EBITDA Margin | PAT Margin | RoE | P/E |
|---|---|---|---|---|---|
| GSP Crop Science | 1,287.39 | 12.74% | 6.26% | 18.38% | 14.22–14.97x |
| PI Industries | 7,977.80 | 31.68% | 19.95% | 16.35% | 28.25x |
| Sumitomo Chemical India | 3,148.52 | 23.89% | 15.49% | 17.42% | 39.23x |
| Dhanuka Agritech | 2,035.15 | 22.24% | 14.34% | 21.18% | 15.13x |
| Rallis India | 2,662.94 | 11.96% | 4.64% | 6.61% | 40.12x |
| Bharat Rasayan | 1,173.00 | 18.48% | 11.75% | 12.47% | 4.14x |
| India Pesticides | 828.61 | 16.22% | 9.74% | 9.15% | 21.57x |
| Heranba Industries | 1,409.73 | 7.48% | 0.16% | 0.37% | 252.92x |
At the upper band of Rs 320, GSP Crop Science is priced at 14.97x FY25 earnings — a meaningful discount to most listed peers. Compared to Dhanuka Agritech at 15.13x and India Pesticides at 21.57x, the valuation appears relatively modest, particularly given GSP’s improving margin trajectory. Revenue growth at 11.74% in FY25 compares well against peers like PI Industries at 4.07% and Rallis India at 0.55%. The company’s RoE of 18.38% is among the stronger in the peer set.
Promoter Shareholding
Promoter and promoter group shareholding will decline from 98.33% pre-issue to 71.73% post-issue, with public float rising to 28.27%.
Risks to Consider
China raw material dependence. Raw material imports from China constituted 42% of purchases in H1 FY26 and have been rising steadily. Any supply disruption or geopolitical friction would directly impact manufacturing. Regulatory approvals. The agrochemical business requires ongoing registrations from the Central Insecticides Board and Registration Committee, as well as international regulatory authorities. Failure to obtain or renew these could materially affect the business. Raw material cost volatility. Materials consumed constituted over 71% of total expenses in H1 FY26. Any input cost spike that cannot be passed on would compress margins. Geographic concentration. Around 60% of domestic revenue comes from Gujarat, Maharashtra, Andhra Pradesh, Rajasthan, and Karnataka — concentration that creates exposure to regional agricultural conditions. Working capital intensity. Net working capital days stood at 110 in H1 FY26, with trade receivables at Rs 645 crore — a significant number relative to revenue that warrants monitoring.
