GSP Crop science Ltd. IPO

GSP Crop Science

• GSP Crop Science is coming out with a 100% book building; initial public offering (IPO) of 1,28,94,736 shares of face value Rs 10 each in a price band Rs 304-320 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on March 16, 2026 and will close on March 18, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 10 and is priced 30.40 times of its face value on the lower side and 32.00 times on the higher side.
• Book running lead managers to the issue are Equirus Capital and Motilal Oswal Investment Advisors.
• Compliance Officer for the issue is Kamleshbhai D Patel.

Profile of the company

The company is a research-driven agrochemical company, specializing in the development and manufacturing of insecticides, herbicides, fungicides and plant growth regulators in India. It provides its customers with crop protection solutions designed to support farmers in maximizing productivity and achieving optimal agricultural output through development, manufacturing, supply and distribution of (i) formulations, which refer to products composed of ‘active ingredients’, chemical compounds in a product responsible for achieving the desired effects on the target pests, weeds, or plant diseases and ‘additives’ which improve the product’s performance, stability, and ease of use, in definite proportion obtaining well-defined target properties (Formulations); and (ii) technicals, which refer to concentrated form of the ‘active ingredients’ which are processed with other ingredients to develop formulations (Technicals).

As of September 30, 2025, the company has received 524 registrations across Formulations and Technicals for agrochemicals manufactured by the company. This has been achieved with a strong focus on product research and development. It holds process and product patents across a variety of agrochemicals. As a research driven agrochemicals company, its research and development efforts over the years have led it to being granted 102 patents. Additionally, it also has 108 patent applications under process. Its Material Subsidiary, Rajdhani Petrochemicals, was among the top 10 Indian applicants for Patent Cooperation Treaty filings (RO/IN) in Fiscal 2022. It was also ranked among the top 10 Indian applicants for patents from Scientific and Research & Development Organizations in Fiscal 2017.

Proceed is being used for:

• Repayment or pre-repayment of all or a portion of certain outstanding borrowings availed by the company
• General corporate purposes

Industry overview

The size of the agrochemicals market in India reached Rs 366 billion during FY2025, reflecting a compound annual growth rate (CAGR) of 12.4% from FY2020 to FY2025. With its varied agro-climatic conditions and extensive agriculture terrain, India stands as one of the foremost producers and consumers of agrochemicals on a global scale. This market encompasses a diverse array of products, including insecticides, herbicides, fungicides, and plant growth regulators, all of which are vital for safeguarding crops against pests, diseases, and weeds, thus optimizing production levels. 

The expansion of the Indian agrochemical market is influenced by multiple factors. The rising population and the resulting food demand have created a need for increased agriculture output, subsequently driving the demand for agrochemical products. Furthermore, the implementation of modern agriculture techniques and the growth of irrigated arable land have also contributed to market growth. In addition, government initiatives designed to assist farmers, such as subsidies for agrochemical products and the encouragement of integrated pest management strategies, have supported this sector.

There is a noticeable trend towards the adoption of bio-pesticides and organic farming methods, spurred by heightened awareness regarding the detrimental impacts of chemical pesticides on both human health and the environment. The industry has been encountering obstacles, including rigorous regulatory requirements and the prevalence of counterfeit products. Nevertheless, the Indian agrochemical market is set for consistent growth, bolstered by advancements in agriculture technology, increased mechanization, and ongoing initiatives to boost agriculture productivity to satisfy the food needs of an expanding population.

Pros and strengths

Well-diversified product portfolio: As a research-driven agrochemical company, the company specializes in the development and manufacturing of insecticides, herbicides, fungicides and plant growth regulators in India. Its robust product development capabilities empower it to effectively manufacture and operate across its two businesses: Formulations and Technicals. As of September 30, 2025, it has 524 registrations across Formulations and Technicals for insecticides, herbicides, fungicides and plant growth regulators. This has been achieved by having a strong focus on research and product development. Its product portfolio comprises primarily of products that it manufactures in-house. Its diverse portfolio of agrochemicals enables it to meet its customers’ crop protection needs. It provides its customers with crop protection solutions designed to support farmers in maximizing productivity and achieving optimal agricultural output through development, manufacturing, supply and distribution of Formulations and Technicals.

Catering to large and diverse clientele both domestically as well as internationally: The company has developed strong relationships with various B-to-B customers, in its Domestic Business that has helped it expands its product offerings as well as its geographic reach. Its customer relationships depend on its ability to manufacture complex Formulations and Technicals that go off-patent, in a cost effective, safe and environmentally conscious manner as well as its ability to meet stringent quality specifications. It has long-standing relations with its customers for its Domestic Business as well as International Business. Several of its customers have been associated with the company for over 10 years. Its customers include agrochemical companies such as Bharat Rasayan, Dharmaj Crop Guard, Indogulf Cropsciences, SML, Willowood Chemicals and Agrico Organics. It serves a broad and diverse customer base, ensuring minimal reliance on any single client. This diversity strengthens its resilience and adaptability, allowing it to thrive in dynamic market conditions and consistently meet the needs of various segments in the agrochemical industry.

Strong in-house R&D capabilities: It undertakes R&D activities as part of its operations which has enabled it to develop the technological processes it utilizes at its facilities. The company has a proven track record of introducing Formulations and Technicals to the Indian agrochemicals market. In 2022, the company commissioned an R&D and pilot plant facility to test commercialization of its products. Its R&D efforts place significant emphasis on identifying Formulations and Technicals that are suitable for commercialization, improving its production processes, improving the quality and purity of its present products and manufacturing new off-patent products. It has invested in expanding its R&D capabilities, by setting up an (i) R&D facility for Formulations located at Kathwada and (ii) R&D facility for Technicals located at Odhav. Its R&D facilities are capable of producing complex chemistries. It manufactures Chlorantraniliprole Technical (minimum 96% purity), Clothianidin Technical (minimum 98% purity) and Pymetrozine Technical (minimum 98% purity).

Robust manufacturing facilities: As of September 30, 2025, the company has five manufacturing facilities located at Odhav (Ahmedabad, Gujarat), Kathwada (Ahmedabad, Gujarat), Nandesari (Vadodara, Gujarat), Samba (UT of Jammu & Kashmir) and Saykha (Dahej, Gujarat). As of September 30, 2025, the company has an annual aggregated installed capacity of 15,120 MTPA for Technicals, 43,672 MTPA for Formulations and 5,400 MTPA for intermediates across its five manufacturing facilities. Its manufacturing facilities are equipped with equipment and machinery that enables it to manufacture Formulations and Technicals and helps minimize the number of employees required to operate them, thereby improving operational efficiency. Each of its facilities has the ability to manufacture a wide range of products and allows it the ability to address the requirements of customers. It also intends to focus on developing alternate production processes for Formulations and Technicals that are expected to go off-patent in the near future. It intends to focus on cost optimization and manufacture products by utilising its fixed assets efficiently.

Risks and concerns

Dependence on key suppliers for raw materials: The company depends on a few suppliers for supply of raw materials. Purchases from the top ten suppliers constituted 38.21%, 35.53%, 34.29%, and 34.97% of total purchases for continuing operations for the six months ended September 30, 2025, Fiscal 2025, Fiscal 2024, and Fiscal 2023, respectively. In addition, if all or a significant number of its suppliers for any particular raw material are unable or unwilling to meet its requirements or its estimates fall short of the demand, it could suffer shortages or significant cost increases. Continued supply disruptions for longer durations could adversely impact its delivery schedules to its customers, thereby affecting its business, financial condition and results of operations.

Dependence on China for raw materials: The company is dependent on China for imports of its raw materials, with imports of raw materials from China constituting 42.08%, 37.99%, 35.28%, and 31.85% of its purchases for continuing operations in the six months ended September 30, 2025, and Fiscals 2025, 2024, and 2023, respectively. Its supplies from overseas suppliers in China may be affected due to certain external factors such as currency fluctuations and unfavourable economic conditions, geopolitics, import duties and tariffs, force-majeure and other economic or political conditions that may result in significant increases in the costs of raw materials and other components, thus increasing its operating costs and reducing its margins, and in some cases, causing delays in procurement of such materials and components. Any interruption in imports, specifically from China, may have an adverse impact on its manufacturing operations and results of operations.

Significant reliance on generic product sales: Significant portion of its revenue is derived from sale of generic products. Revenue from sale of generic products constituted 82.90%, 82.58%, 86.13%, and 94.17% of its sale of products from continuing operations for the six months ended September 30, 2025, and Fiscals 2025, 2024, and 2023, respectively. As a substantial share of its revenue is generated from generic products, which do not benefit from the legal protections afforded to its patented products. Consequently, this exposes it to heightened competition and relatively constrained pricing flexibility.  Any decline in the sale of generic products, could adversely impact its business, financial condition and result of operations.

Dependent on third party transportation and logistics service providers: The company relies on third party transportation and logistics providers for delivery of its raw materials and products. Disruptions in logistics could impair its ability to procure raw materials and/or deliver its products on time, which could materially and adversely affect its business, financial condition and results of operations. It is subject to the risk of increases in freight costs. If it cannot fully offset any increase in freight costs, through increase in the prices for its products, it would experience lower margins. In addition, any increase in export tariffs also will increase expenses which in turn may adversely affect its business, financial condition and results of operations. Any defect, damage or destruction caused to its products could also adversely affect its business, financial condition and results of operations.

Outlook

GSP Crop Science with subsidiaries is primarily engaged in manufacturing of Agro Chemicals which include Insecticides, Pesticides and Herbicides. It caters to both Domestic and International Markets. It provides its customers with crop protection solutions designed to support farmers in maximizing productivity and achieving optimal agricultural output through development, manufacturing, supply and distribution of (i) formulations; and (ii) technical. On the concern side, significant portion of its revenue is derived from the sale of Insecticides. Revenue from sale of insecticides constituted 58.79%, 63.02%, 68.20%, and 62.67% of its sale of products from continuing operations for the six months ended September 30, 2025 and for Fiscals 2025, 2024, and 2023, respectively. Any decline in the sale of Insecticides, could adversely impact its business, financial condition and results of operations.

The issue has been offering 1,28,94,736 shares in a price band of Rs 304-320 per equity share. The aggregate size of the offer is around Rs 392 crore to Rs 412.63 crore based on lower and upper price band respectively. Minimum application is to be made for 46 shares and in multiples thereon, thereafter. On performance front, its total income increased by 12.33% from Rs 11,582.28 million in Fiscal 2024 to Rs 13,010.56 million in Fiscal 2025. Restated profit for the year from continuing and discontinued operations increased by 34.02% from Rs 612.88 million in Fiscal 2024 to Rs 821.37 million in Fiscal 2025.

Meanwhile, continuing to expand its product offerings by leveraging its R&D capabilities. Its focus on R&D and manufacturing capabilities has been a key element which has supported its operations. It aims to diversify its existing product portfolio by incorporating new products that align with its current offerings. In 2022, the company commissioned an R&D and pilot plant facility to test commercialization of its products. It intends to continue to invest in its R&D initiatives and further strengthen its manufacturing capabilities in order to grow its product portfolio for both the domestic and international markets. It has strategically harnessed its R&D capabilities to significantly expand its portfolio of patented products. Additionally, it intends to focus on expanding its customer base, deepen relationships with existing customers by improving its existing products, and also increasing the number of products that it manufactures. It aims to continue to maintain a strong track-record of repeat orders from its existing customers as well as expand and strengthen its relationships as part of its organic growth efforts.