Advance Agrolife IPO: GMP, Subscription Status & Investment Insights
Introduction
Advance Agrolife Limited, a Jaipur-based agrochemical company, has launched its Initial Public Offering (IPO) to raise approximately ₹193 crore. The IPO comprises a fresh issue of 1.93 crore equity shares, priced between ₹95 and ₹100 per share. The subscription window opened on September 30, 2025, and will close on October 3, 2025. The shares are expected to list on the BSE and NSE on October 8, 2025.
IPO Overview
Offer Details
| Feature | Details |
|---|---|
| Issue Size | ₹193 crore |
| Price Band | ₹95 – ₹100 per share |
| Lot Size | 150 shares |
| Fresh Issue | ₹193 crore |
| Offer for Sale | Nil |
| Listing Date | October 8, 2025 |
The IPO is entirely a fresh issue, meaning all proceeds will go to the company for business expansion, working capital, and other corporate purposes.
Subscription Status
As of October 1, 2025, the IPO has received the following bids:
| Investor Category | Shares Offered | Shares Bid | Subscription Ratio |
|---|---|---|---|
| Qualified Institutional Buyers (QIB) | 13,50,900 | 47,25,150 | 3.5x |
| Non-Institutional Investors (NII) | 13,50,900 | 10,94,000 | 0.81x |
| Retail Investors | 1,07,27,200 | 1,02,50,000 | 0.96x |
| Total | 1,35,09,004 | 2,23,47,150 | 1.65x |
The IPO has been oversubscribed by 65% on Day 2, indicating strong investor interest.
Grey Market Premium (GMP)
As of October 1, 2025, the Grey Market Premium (GMP) for Advance Agrolife IPO is ₹9, suggesting a potential listing gain of approximately 9% over the issue price. This indicates moderate investor confidence in the IPO's performance.
Financial Highlights
| Metric | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|
| Revenue | ₹502.3 crore | ₹455.8 crore | ₹397.8 crore |
| EBITDA Margin | 9.61% | 8.82% | 6.34% |
| PAT | ₹25.6 crore | ₹24.7 crore | ₹14.8 crore |
| PAT Margin | 5.10% | 5.42% | 3.74% |
| Return on Net Worth | 29.11% | 37.62% | 34.38% |
| Debt-to-Equity Ratio | 0.8 | 0.6 | 0.5 |
The company has demonstrated consistent revenue growth and profitability over the past three years, with a healthy return on net worth.
Key Factors to Consider Before Applying
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Strong Financial Performance: Consistent revenue and profit growth with healthy margins.
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Moderate GMP: Indicates potential listing gains, though not guaranteed.
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Oversubscription: High demand across investor categories, reflecting investor confidence.
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Use of Proceeds: Funds will be utilized for business expansion and working capital, which could support future growth.
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Industry Outlook: The agrochemical sector is poised for growth, driven by increased agricultural activities and demand for crop protection products.
Conclusion
Advance Agrolife's IPO presents a promising investment opportunity for those looking to invest in the agrochemical sector. The company's strong financials, coupled with a moderate GMP and oversubscription, suggest positive prospects. However, potential investors should consider the inherent risks and consult with financial advisors before making investment decisions.
