GSP Crop Science shares made a positive stock market debut; shares list at 4% premium

Shares of GSP Crop Science made a positive stock market debut on Tuesday, March 24 as the agrochemical player was listed at Rs 332.30 on BSE, a premium of 3.84 per cent over its issue price of Rs 320. Similarly, the stock settled with a premium of 2.50 per cent at Rs 328 on NSE in its maiden trading session.

The listing of GSP Crop Science has been better than the expectations, thanks to the rebound in the broader markets. Last heard, the company was commanding a grey market premium 2 apiece, suggesting a muted listing for the investors. As of the listing price, investors made a profit of Rs 565.80 on each lot.

GSP Crop Science sold its shares in the price band of Rs 304-320 apiece between March 16-18. Investors could apply for a minimum of 46 shares and its multiples thereafter. It raised Rs 400 crore via IPO, which includes a fresh share sale of 1,25,00,000 equity shares worth Rs 240 crore and an offer-for-sale (OFS) of up to 75,00,000 equity shares worth Rs 160 crore.

The IPO of GSP Crop Science was overall subscribed 1.61 times, fetching bids for Rs 459.58 crore. The allocation for qualified institutional bidders (QIBs) was subscribed at 2.66 times, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 3.05 times. The portion reserved for retail investors was subscribed only 40 per cent during the bidding period.

Ahmedabad-based GSP Crop Science was Incorporated in 1985, and is an agrochemical company engaged in the business of manufacturing insecticides, herbicides, fungicides and plant growth regulators. It provides crop protection solutions to help farmers increase productivity, offering formulations and techniques for effective pest, weed, and disease control.

Brokerage firms had a mixed view on the issue, with most of the analysts suggesting to subscribe to it with a long-term view. Equirus Capital and Motilal Oswal Investment Advisors were the book running lead managers for GSP Crop Science IPO and MUFG Intime India served as the registrar of the issue.