Dharmaj Crop Guard IPO Day 2: The initial public offering (IPO) of Dharmaj Crop Guard, which is open for public subscription from November 28 to November 30, was fully subscribed on the first day of the offer and ended trading with 1.79 times subscription on Monday. The Rs 251.14-crore IPO received bids for 1,43,79,060 shares against 80,12,990 shares on offer, according to NSE data.
Dharmaraj Crop Guard IPO: Quota-wise subscription so far
The retail individual investors (RIIs) category was subscribed 2.60 times, non-institutional investors’ portion was subscribed 1.80 times and qualified institutional buyers (QIBs) 35 per cent.
Dharmaj Crop Guard IPO: Basic Details
The Dharmaj Crop Guard IPO comprises a fresh issue of shares up to Rs 216 crore and an offer for sale (OFS) of up to 14.83 lakh shares by existing shareholders. The company has fixed the price band of the IPO in the range of Rs 216-237 per share.
According to market observers, the unlisted shares of Dharmaj Crop Guard are currently trading at a premium of Rs 46 against the upper band of Rs 237 in the gray market. This means that the company’s shares are trading at Rs 383 per share in the gray market. , It also indicates that the expected listing price of the company’s shares is going to be higher than the issue price. The premium fluctuates depending on the sentiments in the markets.
The shares of Dharmaj Crop Guard are expected to get listed on BSE and NSE on December 8.
Dharmaj Crop Guard IPO: Objective
The company’s objectives of raising funds through the IPO include funding capital expenditure for setting up a manufacturing facility at Saykha, Bharuch, Gujarat; financing the company’s incremental working capital requirements; Repayment and/or prepayment, in full and/or in part, of certain borrowings of the Company; and general corporate objectives.
About Dharmaj Crop Guard and its financials
Incorporated in 2015, Dharmaj Crop Guard Limited is an Agrochemical company. The company is engaged in the business of manufacturing, distributing and marketing a wide range of Agrochemical formulations such as Insecticides, Fungicides, Herbicides, Plant Growth Regulators, Micro Fertilizers and Antibiotics to B2C and B2B clients.
The company also provides crop protection solutions to assist farmers to maximize productivity and profitability. Dharmaj Crop Guard Limited exports products to more than 25 countries in Latin America, East African countries, Middle East and Far East Asia.
As of July 2022, Dharmaj Crop Guard Ltd. had over 219 institutional products sold to over 600 customers India and international market. As of July, 2022, the company has exported its products to more than 60 customers in 25 countries.
The company’s manufacturing facility is located in Ahmedabad, Gujarat, India. Dharmaj Crop Guard Limited also has a Research and Development (R&D) center at its manufacturing facility.
The company’s branded products are sold across 17 states through a network of over 4,200 dealers reaching 16 stock depots in India by July’2022.
Revenue from operations for the financial years 2020 and 2021 and ending July 2022 were Rs 1,982.22 million, Rs 3,024.10 million and Rs 3,962.88 million, respectively.
Growth journey of Dharmaj Crop Guard: Last 3 Years PAT Growth – 63.3% • Last 3 Years Revenue Growth – 41% • Last 3 Years ROCE – 33% • Last 3 Years ROE -35%.
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