Home IPO ipo: Dharmaj Crop Guard IPO subscribed 48% in first 2 hours of bidding process

ipo: Dharmaj Crop Guard IPO subscribed 48% in first 2 hours of bidding process

by Chris Williams
New Delhi: The Rs 251-crore initial public offering (IPO) of Dharmaj Crop Guard received a strong response from investors during the first two hours of the bidding process on Monday

According to the data from BSE, the investors made bids for 38,25,720 equity shares or 48% compared to the 80,12,990 equity shares offered for subscription by 12.10 pm.

The quota for retail bidders was subscribed 83%, whereas the employee portion was booked 35%. Allocation for non-institutional investors fetched 28% bids, but the portion for qualified institutional bidders did not see any bids so far.

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.

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 IPO is aggressively priced with expensive valuation compared to other listed players and hardly leaves anything meaningful on the table for investors, said Reliance Securities in the IPO report, without rating the issue.

Qualified institutional investors will get 50% of the net issue, whereas non-institutional players will be allocated 15% of the offer. The remaining 35% of the 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 for 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)

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