As of 11:30 am on day 2, the issue has been subscribed 2.79 times with retail category overbooked 4.10x, NIIs 2.94x, QIBs 0.36x, employee reserved 2.14x, BSE data showed.
As per market observers, Dharmaj Crop Guard shares are available at a premium (GMP) of ₹46 in the grey market today. The shares of the company are expected to list on the stock exchanges BSE and NSE next week on Thursday, December 8, 2022.
Dharmaj Crop Guard IPO consists of fresh issue of equity shares worth up to ₹216 crore and an offer-for-sale (OFS) of up to 14.83 lakh equity shares by the existing shareholders.
Incorporated in 2015, Dharmaj Crop Guard Limited is an agrochemical company. The company is engaged in the business of manufacturing, distributing, and marketing a wide range of agrochemical formulations such as insecticides, fungicides, herbicides, plant growth regulators, micro fertilizers and antibiotics to the B2C and B2B customers.
The company's manufacturing facility is located in Ahmedabad, Gujarat, India. Dharmaj Crop Guard Limited also has a research and development (R&D) center at the manufacturing facility. The company's branded products are sold in 17 states through a network comprising over 4,200 dealers having access to 16 stock depots in India, as of July 2022.
The company aims to use the proceeds from the fresh issue for funding capital expenditure towards setting up of a manufacturing facility at Saykha, Bharuch, Gujarat; funding incremental working capital requirements of the company; repayment and/or pre-payment, in full and/or part, of certain borrowings of the company, and general corporate purposes.
Giving 'subscribe' tag, Swastika Investmart report said, "The upward momentum in pesticide industry output is expected to continue going forward, backed by a growth in food consumption in the domestic market amid an expected increase in population, government support for agriculture, demand from export markets, and the horticulture and floriculture markets, among others."
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