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 an offer-for-sale (OFS) of Rs 35.15 crore.
According to data from BSE, investors made bids for 9,06,84,780 equity shares or 11.32 times compared to the 80,12,990 equity shares offered for the subscription by 12.10 pm on Wednesday, November 30.
The quota for retailers was subscribed 13.19 times, whereas the employee’s portion was booked 4.99 times. The portion for non-institutional investors fetched 20.86 times the bids, and the portion for qualified institutional bidders was booked at 85%.
Incorporated in 2015, Dharmaj Crop Guard is an agrochemical company engaged in the manufacturing, distributing, and marketing of a wide range of agrochemical formulations.
At the upper price band of Rs 237, the company is valued at a P/E multiple of 27.9x its FY22 earnings and post-issue market capitalization of Rs 801 crore, said
“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.
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.
“We believe the company’s long-term prospects are favorable, given that it is an emerging player in the agrochemicals space having both B2C and B2B client base,” said KR Choksey in its IPO note.
“Valuation-wise also, it is available at a discount to its listed industry peers. As a result of all these positive factors, we recommend investors to ‘subscribe’ to the issue,” it added.
Elara Capital and
are the book-running lead managers of the issue, whereas Link Intime India has been appointed as the registrar of the issue.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times)