NSE SME IPO Dollex Agrotech ends with 1.78 times subscription

The offer received bids for 1.24 crore shares as against 69.68 lakh shares on offer.

The initial public offer (IPO) of Dollex Agrotech received bids for 1,24,08,000 shares as against 69,68,000 shares on offer, as per NSE data on Tuesday (20 December 2022). The issue was subscribed 1.78 times.

The qualified institutional buyers (QIBs) category put in bids for 36,000 shares. The non institutional investors category subscribed to 47,96,000 shares. The retail individual investors (RIIs) category bought 75,76,000 shares.

The issue opened for bidding on Thursday (15 December 2022) and it closed on Tuesday (20 December 2022). The issue price was fixed at Rs 35 per share.

The IPO of up to 69.68 lakh equity shares comprised a fresh issue of up to 49.68 lakh equity shares, aggregating to Rs 17.39 crore, and an offer for sale of up to 20 lakh equity shares by Marium Leasing & Investment ("the promoter group selling shareholders") aggregating to Rs 7 crore.

Marium Leasing and Investment belong to the promoter group of the company. Pre-issue, it held 29,90,000 shares or 14.95% stake in the company. Post-issue, the same will reduce to 9,90,000 shares or 3.97% stake.

The company intends to utilize the net proceeds from the issue for working capital requirements and for general corporate purposes.

Dollex Agrotech is engaged in the business of manufacturing & trading of sugar with captive power co-generation capabilities. In year 2017, Mehmood Khan, the company's promoter, decided to set-up sugar manufacturing plant & commenced its operations in 2018, of Sugar manufacturing, from sugarcane along with captive power co-generation capabilities in Datia, Madhya Pradesh. The said plant has a crushing capacity of 2500 TCD.

The company has received in-principle approval from department of Food & public distribution from Government of India for establishing distilleries of 200 KLPD capacity. In addition to sugar, it also produces and sells its by-products such as mollases, pressmud and bagasse. The bagasse is used to generate power. Further, it is engaged in power generation upto the captive power of 3 MW. The company intends to enter into new segment of ethanol production under EBP Program by the Ministry of Petroleum and Natural Gas in coming years.

The company recorded revenue from operations of Rs 8.38 crore and net profit of Rs 1.51 crore for the period ended on 30 June 2022.

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