The company is selling its shares in the range of Rs 216-237 apiece between November 28-30, with a lot size of 60 equity shares. The issue comprises fresh equity shares worth Rs 216 and offer-for-sale (OFS) of Rs 35.15 crore.
According to the data from BSE, the investors made bids for 2,46,13,860 equity shares or 3.06 times compared to the 80,12,990 equity shares offered for the subscription by 12.15 pm on Tuesday, November 29.
The quota for retailers was subscribed 4.54 times, whereas the employees portion was booked 2.21 times. Portion for non-institutional investors fetched 3.29 times bids, and the portion for qualified institutional bidders was booked 36%.
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.
At the upper price band of Rs 237, Dharmaj Crop Guard is valued at a P/E multiple of 27.9x its FY22 earnings and post issue market capitalisation of Rs 801 crores, said
Securities.
“The company plans to enhance its manufacturing capabilities through backward integration and expand its product portfolio. The issue is fairly priced,” it added with a subscribe recommendation for the issue.
Qualified institutional investors will get 50% of the net issue, whereas non-institutional players will be allocated with 15% of the offer. Remaining 35% portion has been fixed for retail bidders.
The company has a strong R&D and distribution network across India. It has delivered revenue, EBITDA and profit after tax growth of 41.02%, 57.68% and 63.30% CAGR (FY20-FY22) respectively, said
Securities.
In addition, the government initiatives and various schemes augur better growth potential to the agriculture sector, it added with a recommendation of ‘subscribe for listing as well as long-term gains’ to the issue.
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)
