Dharmaj Crop Guard IPO subscribed 5.97 times

The offer received bids for 4.78 crore shares as against 80.12 lakh shares on offer.

The initial public offer (IPO) of Dharmaj Crop Guard received bids for 4,78,68,720 shares as against 80,12,990 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (29 November 2022). The issue was subscribed 5.97 times.

The issue opened for bidding on Monday (28 November 2022) and it will close on Wednesday (30 November 2022). The price band of the IPO is fixed at Rs 216-237 per share. An investor can bid for a minimum of 60 equity shares and in multiples thereof.

The issue comprises fresh issue of equity shares worth Rs 216 crore by the company and an offer for sale of up to 14,83,000 equity shares by promoter group selling shareholders.

Of the net proceeds of fresh issue, the company proposes to utilize Rs 104.97 crore towards funding capital expenditure towards setting up of a manufacturing facility at Saykha, Bharuch, Gujarat and 45 crore for funding incremental working capital requirements of the company while 10 crore towards repayment and/or pre-payment, in full and/or part, of certain borrowings of the company and balance towards general corporate purposes.

As on 30 September 2022, the company's aggregate outstanding borrowing stood at Rs 55.536 crore.

Ahead of the IPO, Dharmaj Crop Guard on Friday, 25 November 2022, raised Rs 74.95 crore from anchor investors. The board allotted 31,62,540 shares at Rs 237 per share to three anchor investors.

Dharmaj Crop Guard is an agrochemical company engaged in the business of manufacturing, distributing, and marketing of a wide range of agro chemical formulations such as insecticides, fungicides, herbicides, plant growth regulator, micro fertilizers and antibiotic to the B2C and B2B customers. It is also engage in the marketing and distribution of agrochemical products under brands in-licensed by us, owned by us and through generic brands, to Indian farmers through our distribution network. The company provides crop protection solutions to the farmer to assist them to maximize productivity and profitability. The firm exports its products to more than 25 countries in Latin America, East African Countries, Middle East and Far East Asia.

The company reported net profit of Rs 18.36 crore and total income of Rs 220.94 crore in the four months ended July 2022.

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