The ₹400-crore initial public offering (IPO) of agrochemical firm GSP Crop Science has received a muted response from investors so far, with the issue subscribed 0.78 times on the second day of bidding, reflecting cautious sentiment in the primary market.

Exchange data showed that while institutional and high-net-worth investors have shown some interest in the issue, retail participation has remained notably weak.

The qualified institutional buyer (QIB) portion was subscribed 1.28 times, while the non-institutional investor (NII) segment saw a relatively stronger 1.55 times subscription, driven largely by high-value applications exceeding ₹10 lakh, which were subscribed 2.21 times. In contrast, the retail portion lagged significantly, garnering only 0.17 times subscription, indicating limited appetite among small investors.

The IPO comprises a fresh issue of ₹240 crore and an offer for sale (OFS) of ₹160 crore by existing shareholders. The price band has been set at ₹304–₹320 per share, with a lot size of 46 shares. The issue opened for subscription on March 16 and will close on March 18.

Proceeds from the fresh issue are proposed to be used primarily for reducing borrowings, which is expected to strengthen the company’s balance sheet and significantly lower finance costs. The company has also seen a higher share of revenue from patented products over the past year, which has supported margins and improved its return profile.

The subdued retail response comes amid ongoing volatility in equity markets, driven by rising crude oil prices and geopolitical tensions, which appear to have dampened risk appetite. However, steady participation from institutional and affluent investors suggests that selective interest persists, even as broader sentiment remains cautious.

Meanwhile, the company’s shares were trading flat in the unlisted market, with the grey market premium (GMP) at ₹0 as of March 17, indicating expectations of a flat listing on the domestic bourses. The shares are expected to list on the BSE and NSE on March 24, following the finalisation of share allotment on March 20.

A day ahead of the IPO opening, GSP Crop Science raised ₹120 crore from anchor investors, allocating 37.5 lakh equity shares at ₹320 per share. Some of the institutions that participated in the anchor round include Shine Star Build Cap Pvt Ltd, Craft Emerging Market Fund PCC – Citadel Capital Fund, and Craft Emerging Market Fund PCC – Elite Capital Fund.

Equirus Capital Private Limited and Motilal Oswal Investment Advisors Limited are the book-running lead managers to the issue, while MUFG Intime India Private Limited is the registrar.

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