Dharmaj Crop Guard IPO: Check GMP as all eyes on shares listing after allotment

As per market observers, Dharmaj Crop Guard shares are available at a premium (GMP) of ₹52 in the grey market today. The shares of the company are expected to list on the stock exchanges BSE and NSE later this week on Thursday, December 8, 2022.

The Initial Public Offer (IPO) of Dharmaj Crop Guard was subscribed 35.49 times on the last day of subscription on Wednesday, November 30, 2022. The issue received bids for 28,43,51,820 shares against 80,12,990 shares on offer. The initial share sale had a fresh issue of up to ₹216 crore and an offer for sale (OFS) of 14,83,000 equity shares. Its price range was ₹216-237 a share.

Incorporated in 2015, Dharmaj Crop Guard is an agrochemical company engaged in the business of manufacturing, distributing, and marketing a wide range of agro chemicals such as insecticides, fungicides, herbicides, plant growth regulator, micro fertilizers, and antibiotic.

The company also provides crop protection solutions to the farmer to assist them to maximize productivity and profitability. It exports its products to more than 25 countries across Latin America, East African Countries, Middle East and Far East Asia. The revenue from operations for Fiscals 2020 and 2021 and seven months period ended on October 31, 2021, was ₹1,982 million, ₹3,024 million and ₹2,272.6 million, respectively.

Proceeds from the issue will be used for funding capital expenditure towards setting up of a manufacturing facility at Saykha Bharuch in Gujarat, funding incremental working capital requirements, payment of debt and general corporate purposes.

Elara Capital (India) Private Limited and Monarch Networth Capital Limited were the book running lead managers to the issue. Link Intime India Private Ltd was the registrar of the initial share sale.