Dharmaj Crop Guard IPO: Dharmaj Crop Guard IPO to open on Nov 28; price band fixed at Rs 216-237


New Delhi: The initial public offering (IPO) of Dharmaj Crop Guard will kick off for subscription on Monday, November 28. The company will sell its shares in the range of Rs 216-237 apiece.

The issue consists of fresh equity shares worth Rs 216 crore and an offer for sale (OFS) of up to 14,83,000 equity shares by the promoters and existing shareholders of the company.

Manjulaben Rameshbhai Talavia, Muktaben Jamankumar Talavia, Domadia Artiben and Ilaben Jagdishbhai Savaliya are the existing investors participating in the OFS.

Investors can place a bid of a minimum of 60 equity shares and in multiples thereafter. Also, the issue is open for subscription till Wednesday, November 30. The anchor book will open for a day on November 25.

The company has reserved 55,000 equity shares worth Rs 1.25 crore for eligible employees of the company, who will get a discount of 5%. At the upper price band, the company is likely to raise about Rs 251 crore via primary sale.

This will be the ninth public issue getting launched in November. So far, eight initial stake sales have successfully raised about Rs 9,500 crore in this ongoing month.

The company will use the net proceeds from the fresh issue for setting up a manufacturing facility at Saykha, Gujarat, and incremental working capital requirements. It will also repay some debts via fresh issue money.

Qualified institutional investors will get 50% of the net issue, whereas non-institutional players will be allocated 15% of the offer. The remaining 35% portion has been fixed for retail bidders.

Incorporated in 2015, Dharmaj Crop Guard is an agrochemical company, which is engaged in the business of manufacturing, distributing, and marketing a wide range of agrochemical formulations.

The range of its products include insecticides, fungicides, herbicides, plant growth regulators, micro fertilizers and antibiotics to the B2C and B2B customers. It provides crop protection solutions to the farmer.

Dharmaj Crop Guard exports products to more than 20 countries in Latin America, East African Countries, the Middle East and Far East Asia. The company’s manufacturing facility is located in Ahmedabad, Gujarat.

It clocked a 37% growth in profit at Rs 28.69 crore for the year ended March 2022, with a 30% increase in revenue at Rs 394.2 crore compared with the previous year. Profit for Q1FY23 stood at Rs 18.4 crore while the revenue was at Rs 220.9 crore.

Elara Capital and

are the book-running lead managers to the issue, whereas Link Intime India has been appointed as the registrar to the issue.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)



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