Sharda Cropchem's IPO fully subscribed on day two

IPO gets bids for 1.99 crore shares

The initial public offer (IPO) of Sharda Cropchem was subscribed 1.04 times on second day of the bidding for the IPO today, 8 September 2014. The IPO received bids for 1.99 crore shares till 16:00 IST, compared with 1.91 crore shares on offer, as per NSE data.

The issue closes tomorrow, 9 September 2014. The company has set a price band of Rs 145 to Rs 156 per equity share of face value Rs 10 each.

Sharda Cropchem has raised Rs 52.77 crore through pre-initial public offer (IPO) placement of 33.83 lakh equity shares to 18 anchor investors. The shares were allocated at upper end of the IPO price band of Rs 156 per share.

The issue is of 2.25 crore of equity shares of Rs 10 each by selling shareholders of the company viz. HEP Mauritius and promoters Sharda Bubna and Ramprakash Bubna. The public issue is an offer for sale to achieve the benefits of listing the equity shares on the BSE and the NSE.

HEP Mauritius had acquired 15.87% share capital for Rs 100 crore in the fiscal year ended March 2009. Post IPO, HEP Mauritius share holding will be nil and that of promoters will be 75% from the current 84.13%.

Sharda Cropchem reported net profit of Rs 106.91 crore on net sales of Rs 781.91 crore in the year ended March 2014.

Sharda Cropchem is a crop protection chemical company marketing and distributing a wide range of formulations and generic active ingredients globally. While more than 90% of the sales comprising formulations, the company is also in order-based procurement and supply of belts, generic chemicals, dyes and dye intermediates. The company's core strength lies in identifying generic molecules, preparing dossiers, seeking registrations, marketing and distributing formulations in fungicide, herbicide and insecticide segments.

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