Dharmaj Crop Guard IPO Day 2: The initial public offering (IPO) of Dharmaj Crop Guard, which is open for public subscription between November 28 and 30, was fully subscribed on the first day of the offering and closed trading at 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 tendered, according to NSE data.
Dharmaj Crop Guard IPO: Quota-Wise plan to date
The private retail investor (RIIs) category received 2.60 times enrollment, non-institutional investors received 1.80 times enrollment and qualified institutional buyers (QIBs) 35 percent.
Dharmaj Crop Guard IPO: Basic Details
Dharmaj Crop Guard IPO includes a new share issue worth up to Rs 216 crore and an offer for sale (OFS) of up to 14.83 lakh shares by the existing shareholders. The company has set the IPO price range 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 on the gray market, above the upper band of Rs 237. It means that the shares of the company are trading on the gray market at Rs 383 per Unit. . It also indicates that the expected listing price of the company’s stock will be higher than the issue price. The premium fluctuates based on market sentiment.
The shares of Dharmaj Crop Guard are expected to list on the BSE and NSE on December 8.
Dharmaj Crop Guard IPO: Objectives
The company’s objectives for raising funds through the IPO include financing capital expenditures to set up a manufacturing facility in Saykha, Bharuch, Gujarat; financing of incremental working capital requirements of the company; full and/or partial repayment and/or prepayment of certain loans of the company; and general corporate purposes.
About Dharmaj Crop Guard and his finances
Established in 2015, Dharmaj Crop Guard Limited is an agrochemical company. The company is engaged in manufacturing, distributing and marketing a wide variety of agrochemical formulations such as insecticides, fungicides, herbicides, plant growth regulators, micro-fertilizers and antibiotics for B2C and B2B customers.
The company also provides crop protection solutions to the farmer to help them maximize productivity and profitability. Dharmaj Crop Guard Limited exports products to more than 25 countries in Latin America, East African countries, the Middle East and the Far East.
As of July 2022, Dharmaj Crop Guard Limited had more than 219 institutional products which they sold to more than 600 customers in India and the international markets. As of July 2022, the company 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 in the manufacturing facility.
The company’s branded products will be sold in 17 states as of July 2022 through a network of more than 4,200 dealers with access to 16 stock depots in India.
Revenue from operations for Fiscals 2020 and 2021 and ended July 2022 was Rs 1,982.22 million, Rs 3,024.10 million and Rs 3,962.88 respectively.
Dharmaj Crop Guard’s growth trajectory: Last 3 years PAT growth – 63.3 percent • Last 3 years sales growth – 41 percent • Last 3 years ROCE – 33% • Last 3 years ROE -35 percent.
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