Crop Life Science LTD. IPO - Review, Valuation & Todays GMP

Crop Life Science Limited - Complete Overview

Founded in 2006, Crop Life Science Limited is a prominent player in the agrochemical sector, dedicated to the production, distribution, and promotion of a diverse portfolio of agrochemical chemical formulations. These chemicals encompass Pesticides and Micro Fertilizer, with a comprehensive range of pesticides including Insecticides, Fungicides, Herbicides, and Weedicides.

The company has expanded its global footprint by exporting its pesticides and Micro Fertilizer to multiple countries, such as Indonesia, Bangladesh, Egypt, Myanmar, Vietnam, Sudan and others.

Its manufacturing unit is situated in GIDC Ankleshwar (Gujarat) covering an area of approximately 5831.10 Square Meters, the company holds registrations with the Central Insecticides Board ("CIB"). It boasts approvals from the Directorate of Agriculture, Government of Gujarat, as well as the Gujarat Pollution Control Board ("GPCB").

Currently, the company offers a wide spectrum of more than 85 agrochemical products.

 

What does the company do?

Crop Life Science Limited operates as an agrochemical enterprise, specializing in the production, distribution, and promotion of a diverse array of agrochemical formulations.

 

Company Products

The company offers a wide range of over 85 agrochemical products.

 

 

IPO Overview

The IPO date for the offering spans from August 18th to August 22nd, 2023. This IPO operates under a fixed-price issuance model. The total issue size of the IPO comprises 5,140,000 shares, which collectively amount to Rs.26.73 Crores.

The IPO share price has been set at Rs.52 per share, as determined by the company. Each lot of the IPO consists of 2000 shares, with retail investors eligible to bid for a maximum of 1 lot.

In terms of allocation for the upcoming IPO, the company has designated 50% of the overall offering for retail investors, while the remaining 50% is allocated to other investors.

 

Crop Life Science Limited IPO timetable (Tentative)

EVENTS	DATE
IPO Opening Date	18 August 2023
IPO Closing Date	22 August 2023
IPO Allotment Date	25 August 2023
Refund initiation	28 August 2023
IPO Listing Date	30 August 2023

 

Crop Life Science Limited IPO Details

IPO Opening & Closing Date	18 August to 22 August 2023
Face Value	Rs. 10 per share
Issue Price	Rs. 52 per share
Lot Size	2000 Shares
Price of 1 Lot	Rs. 104,000
Issue Size	5,140,000 Shares (aggregating up to Rs. 26.73 Cr)
Offer for Sale	NA
Fresh Issue	5,140,000 Shares (aggregating up to Rs. 26.73 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Purva Sharegistry India Pvt. Ltd.

 

Crop Life Science Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
Minimum Lot Investment (HNI)	2 Lot

 

Crop Life Science Limited IPO Reservation 

Other Investors Portion	50%
Retail Portion	50%

 

Company Financial

Amount in Lakhs

Period	FY 21	FY 22	FY 23
Total Assets	8630.18	9457.75	10471.64
Total Revenue	11950.18	10238.92	12323.43
PAT	370.46	281.41	436.66
Net Worth	3287.06	3526.33	4038.51
Reserve & Surplus	2114.88	2401.86	2838.51
Total Borrowings	1747.29	2093.03	2682.32

 

Sales breakup of for Fiscal 2023, Fiscal 2022 and Fiscal 2021

(Amount in Lakhs)

Particular	2022-23 (up to 28.02.2023)	2021-22	2020-21
Domestic Sales	12066.77	9921.67	11599.52
Export Sales	186.49	273.1	292.76
Revenue from Operations	12253.26	10194.77	11892.28

 

Objective of the Issue

The funds will be allocated to achieve the following objectives:

• Fulfilling working capital needs.
• Supporting general corporate endeavours.
• Covering expenses related to the public issue.

 

Promoters and Management of Crop Life Science Limited

Among the company's promoters are Rajesh Lunagariya, aged 53 and serving as the MD, and Ashvin Lunagaria, aged 58, who holds the position of Promoter and Whole Time Director.

Pre-issue Promoters Holding	100.00%
Post-issue Promoters Holding	70.01%

 

Peer Comparison

The following are the listed peers as per the Crop Life Science Limited DRHP

Company Name	CMP	EPS	P/E Ratio	Total Income (in Lakhs)
Crop Life Science Limited	52	2.35	22.13	10238.92
Aristo Bio-Tech and Lifescience Limited	72.85	2.87	25.38	16603.29
Dharmaj Crop Guard Limited	200.60	11.62	17.26	39628.80
Heranba Industries Limited	370.00	47.25	7.83	146972.30

 

IPO's Valuations

With an EPS of Rs. 2.35 per share and a P/E ratio of 22.13, the calculation yields an IPO valuation of Rs. 52 per share.

 

Dividend Policy

The company has not paid any dividends in the past; however, it may adopt a prudent dividend policy in the future based on its financial performance and other factors.

 

IPO's Strengths 

• Diverse and extensive product range.
• Well-established distribution network.
• Seasoned Promoters, Directors, and Management team.
• Strategic factory location.
• Quality assurance.

 

IPO Weaknesses

• There are outstanding litigations by and against the Company.
• Contingent liabilities may impact financial position.
• Promoter group companies' similar facilities could create a conflict of interest.
• Necessity to secure and renew government registrations, licenses, and permits.
• Vulnerability to climatic conditions and the cyclical nature of business.
• Intellectual property rights protection registrations pending.
• The company has no long-term supply agreements for key raw materials.
• There have been instances of GST Returns and EPF Payments delays in the past.
• Potential impact from alternative crop protection measures, such as biotechnology products, pest-resistant seeds or genetically modified (“GM”) crops.
• Non-compliance with safety, health, and environmental regulations could have adverse effects.
• Overseas customers require product approval/registration in their respective countries.
• Business dependence on a few customers and suppliers.
• Manufacturing Units subject to GPCB inspections.
• The company faces competition from both Domestic and international competitors.

 

 

IPO GMP Today

LatestGMP of Crop Life Science Limited is Rs. 5

 

Conclusion

Crop Life Science Limited boasts a diverse product range and maintains a robust global distribution network. Despite demonstrating commendable recovery post the fire incident in FY 22, the company operates within a fiercely competitive sector. Therefore, investors should diligently evaluate crucial factors before considering participation in the Crop Life Science Ltd IPO.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP

 

 

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