New Delhi: Dharmaj Crop Guard’s Rs 251 crore Initial Public Offering (IPO) also received a strong response from investors on the third and final day of the bidding process. It got almost 6 subscriptions on the second day.
The company is selling its shares in the range of Rs 216-237 a share between November 28th and 30th in a lot size of 60 shares. The issue comprises fresh shares valued at Rs 216 crore and an offer to sell (OFS) at Rs 35.15 crore.
As of Wednesday, November 30, investors have placed bids for 9/6/84,780 shares, or 11.32 times the 80/12,990 shares offered for subscription, as of 12:10 p.m., according to BSE.
The allotment for dealers was subscribed 13.19 times, while the employee portion was booked 4.99 times. The share for non-institutional investors achieved 20.86 times the bids, the share for qualified institutional bidders was booked at 85%.
Established in 2015, Dharmaj Crop Guard is an agrochemical company engaged in the manufacture, distribution and marketing of a wide range of agrochemical formulations.
In the upper price range of Rs.237, the company is valued at a P/E multiple of 27.9x its FY22 earnings and an post-issuance market capitalization of Rs.8.01 billion, he said
securities.
“The company plans to improve its manufacturing capabilities through backward integration and expand its product portfolio. The issue is fairly priced,” it added with a subscription recommendation.
Qualified institutional investors receive 50% of the net issuance, while non-institutional players receive 15% of the supply. The remaining 35% was set for private bidders.
“We believe that the Company’s long-term prospects are favorable as it is an emerging agrochemical player with both a B2C and B2B customer base,” KR Choksey said in its IPO announcement.
“Valuation-wise, too, it’s available at a discount to its listed industry peers. Based on all these positive factors, we recommend investors to ‘subscribe’ the issue,” it added.
Elara Capital and
are the book-running lead managers of the issuance, while Link Intime India has been appointed as the registrar of the issuance.
(Disclaimer: Recommendations, suggestions, views and opinions of experts are their own. These do not represent the views of The Economic Times.)
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