Crop Life Science
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 18 Aug 2023 – 22 Aug 2023
- Listing date
- 30 Aug 2023
- Face value
- ₹10 per share
- Issue price
- ₹52 per share
- Lot size
- 2,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹26.73 Cr
- Market cap at offer price
- ₹89.13 Cr
- Promoter holding
- 100.00% → 70.01% pre-issue → post-issue
- ISIN
- INE00NH01017
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- Interactive Financial Services Ltd.
- Registered office
- 209, Near Judges Bunglow Cross Road, Bodakdev, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 2,60,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹52
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,04,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,08,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,36,000 |
| B-HNI (min) | 10 | 20,000 | ₹10,40,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.64 | — |
| P/E (×) | 14.29 | — |
| Market cap | — | ₹89.13 Cr |
Key performance indicators
- Return on net worth
- 10.81%
- ROCE
- 18.63%
- Debt / equity
- 0.68
- PAT margin
- 2.76%
- NAV per share
- ₹30.02
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Crop Life Science
Crop Life Science Limited was incorporated on May 24, 2006 and commenced business on July 6, 2006. The company manufactures and sells agrochemical formulations including pesticides, insecticides, fungicides, herbicides, weedicides, plant growth regulators, and micro fertilizers. The company operates a manufacturing facility in GIDC Ankleshwar, Gujarat, on leased land from Gujarat Industrial Development Corporation for 99 years. Since 2007, it has expanded its product portfolio to over 85 different agrochemical products. In addition to manufacturing its own products, the company also undertakes jobwork for manufacturing pesticides and micro fertilizers. The company has begun exporting to multiple countries including Indonesia, Bangladesh, Egypt, Myanmar, Vietnam, and Sudan since 2012. The company is guided by promoters Rajesh Lunagariya and Ashvin Lunagaria, who bring deep knowledge and experience in agricultural inputs including pesticides and fertilizers.
Company Analysis
from RHPCrop Life Science Limited is an agrochemical company engaged in manufacturing, distributing, and marketing pesticides, insecticides, fungicides, herbicides, weedicides, plant growth regulators, and micro fertilizers for agricultural use.
Crop Life Science Limited was incorporated on May 24, 2006 and commenced business on July 6, 2006. The company manufactures and sells agrochemical formulations including pesticides, insecticides, fungicides, herbicides, weedicides, plant growth regulators, and micro fertilizers. The company operates a manufacturing facility in GIDC Ankleshwar, Gujarat, on leased land from Gujarat Industrial Development Corporation for 99 years. Since 2007, it has expanded its product portfolio to over 85 different agrochemical products. In addition to manufacturing its own products, the company also undertakes jobwork for manufacturing pesticides and micro fertilizers. The company has begun exporting to multiple countries including Indonesia, Bangladesh, Egypt, Myanmar, Vietnam, and Sudan since 2012. The company is guided by promoters Rajesh Lunagariya and Ashvin Lunagaria, who bring deep knowledge and experience in agricultural inputs including pesticides and fertilizers.
Objects of the Issue
- Repayment of unsecured Loan ₹300.00 lakhs p.18
- Long-term Working capital requirement ₹1,700.00 lakhs p.18
- General corporate purposes ₹620.00 lakhs p.18
- Repayment of unsecured Loan ₹70.00 lakhs p.68
- Long-Term Working Capital Requirement ₹1900.00 lakhs p.68
- General Corporate Purposes ₹650.00 lakhs p.68
- Not specified in this section
Issue Structure
- Total Issue
- ₹2,672.80 lakhs
- Fresh Issue
- 51,40,000 equity shares at ₹52 per share aggregating to ₹2,672.80 lakhs
- Price Band
- ₹52 per equity share (Fixed Price)
- Lot Size
- 2,000 equity shares
- Face Value
- ₹10 per equity share
Business Model
The company manufactures and markets agrochemical formulations including pesticides, insecticides, fungicides, herbicides, weedicides, plant growth regulators, and micro fertilizers. It generates revenue from the sale of these products to farmers and agricultural distributors in India and exports to international markets. The company also undertakes jobwork manufacturing for other entities.
Business Segments
SWOT Analysis
- • Established agrochemical manufacturer with 17+ years operational history(p.17)
- • Diversified product portfolio across pest management and fertilizers(p.17)
- • International export presence across multiple countries(p.17)
- • Strong brand identity built on trust and integrity(p.17)
- • State-of-the-art in-house R&D and quality testing laboratory(p.32)
- • Wide range of agrochemical products across multiple categories(p.87)
- • Extensive distribution network across India and exports(p.88)
- • Experienced promoters with 15+ years in agrochemical manufacturing(p.88)
- • Strategic location of manufacturing facility with infrastructure advantages(p.89)
- • Quality assurance with state-of-the-art in-house laboratory(p.89)
- • Zero-waste manufacturing facility(p.88)
- • In-house plastic packing material manufacturing capability(p.111)
- • Established manufacturing plant with integrated operations(p.155)
- • Experienced leadership with 30+ years in agro-chemical business(p.136)
- • Export presence across multiple geographies(p.131)
- • Milestone achievement of Rs. 100 Crore turnover(p.131)
- • Award for manufacturing performance(p.131)
- • R&D capability through biological research facility(p.131)
- • Outstanding litigation with 216+ criminal cases and contingent liabilities exceeding ₹406 lakhs(p.26)
- • Violation of Companies Act Sections 185 and 186 in related party lending(p.27)
- • High disputed trade receivables outstanding 2+ years (₹410.74 lakhs)(p.29)
- • Heavy dependence on top 10 customers (28.88%-29.07% of sales)(p.33)
- • High supplier concentration (60-69% from top 10 suppliers)(p.33)
- • Significant past fire loss (₹5.86 Cr stock loss, ₹2.26 Cr in plant)(p.31)
- • Low manufacturing capacity utilization (25-41.6%)(p.33)
- • Promoter group company (Hetban Spechem) with identical facilities poses competitive risk(p.28)
- • Lengthy and costly R&D and government approval processes(p.91)
- • Requirement of foreign government approvals for exports(p.91)
- • Low capacity utilization rates across product lines(p.111)
- • Heavy dependence on a few major customers(p.111)
- • Significant dependence on top suppliers(p.111)
- • High customer concentration risk
- • Limited scale relative to larger competitors
- • Dependence on plant location in Ankleshwar
- • Significant borrowings and debt levels(p.152)
- • Expansion of product portfolio and new product development(p.17)
- • Growing Indian agricultural sector and food processing industry(p.17)
- • Increasing agricultural mechanization and crop protection adoption(p.17)
- • Job work manufacturing services for external clients(p.17)
- • Long-term lease of manufacturing facility (99 years) provides stability(p.17)
- • Growing demand for food grains and agricultural output(p.91)
- • Huge export potential for agrochemical products(p.91)
- • Expansion of geographical presence in Tier 2 and Tier 3 cities(p.90)
- • Increasing product portfolio diversification(p.90)
- • Indian agricultural sector projected to grow to $24 billion by 2025(p.83)
- • Rising adoption of advanced agricultural technologies(p.83)
- • Expansion in international markets(p.131)
- • Growing demand for integrated pest management solutions(p.132)
- • Development of bio-based agricultural solutions(p.131)
- • Expansion of product portfolio in agro-chemical space(p.132)
- • Business highly dependent on monsoon and seasonal agricultural cycles(p.29)
- • Regulatory dependence on product approvals and licenses from authorities(p.29)
- • Competition from organized and unorganized domestic and international players(p.34)
- • Vulnerability to alternative crop protection technologies and GM crops(p.31)
- • Exposure to foreign exchange and trade policy risks in export markets(p.36)
- • Stringent environmental and safety regulations for chemical manufacturing(p.32)
- • Power, fuel and water supply dependencies for manufacturing operations(p.32)
- • India-specific macro risks including political instability and economic conditions(p.41)
- • Growing demand for organic farming and Integrated Pest Management(p.91)
- • High dependence on natural climate and monsoon patterns(p.91)
- • Seasonal and cyclical nature of agricultural business(p.91)
- • Frequently changing government and regulatory norms(p.91)
- • Pending Pesticides Management Bill to replace existing Insecticides Act(p.119)
- • Strict licensing and registration requirements under pesticide laws(p.119)
- • Stringent environmental and pollution control regulations(p.121)
- • Hazardous waste handling and liability requirements(p.121)
- • Water pollution control compliance obligations(p.121)
- • Competition from larger established agrochemical companies
- • Regulatory oversight under Competition Act(p.123)
- • Chemical safety and major accident prevention obligations(p.121)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Rajesh Lunagariya | Promoter | 47.63% | 33.35% |
| Ashvin Lunagaria | Promoter | 22.39% | 15.68% |
| Rajesh Lunagariya | Promoter | 47.63% | 33.35% |
| Ashvin Lunagaria | Promoter | 22.39% | 15.68% |
| Vijyagauri Lunagaria | Promoter Group | 14.06% | 9.84% |
| Sumitaben Lunagariya | Promoter Group | 8.81% | 6.16% |
| Vajubhai Lunagariya | Promoter Group | 3.31% | 2.31% |
| Ravjibhai Lunagaria | Promoter Group | 3.31% | 2.31% |
| Bansil Lunagariya | Promoter Group | 0.25% | 0.18% |
| Rajan Lunagaria | Promoter Group | 0.13% | 0.09% |
| Swati Dobariya | Promoter Group | 0.13% | 0.09% |
| Rajesh Lunagariya | Promoter/Managing Director | 47.63% | — |
| Ashvin Lunagaria | Promoter/Whole Time Director | 22.39% | — |
| Rajesh V Lunagariya | Promoter/Director | — | — |
| Ashwin R Lunagaria | Promoter/Director | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.