Dharmaj Crop IPO subscribed 36 times; promising start for Uniparts

Dharmaj Crop Guard’s initial public offering (IPO) garnered nearly 36 times subscription as its bidding closed on Wednesday. The qualified institutional buyers (QIBs) portion was subscribed 48 times, high networth individual portion 52 times and retail portion nearly 22 times.

Dharmaj is an agrochemical company. It raised Rs 216 crore by issuing fresh equity in the IPO. The issue also comprised of secondary share sale worth Rs 35 crore. “If we annualise its four months’ FY23 EPS of Rs 7.44, then on the annualised FY23EPS of Rs 22.32, the issue is available at a P/E of 10.62x, which, compared to its peers, is cheap. Also, as per the prospectus, the valuation looks attractive, considering the average industry P/E of 24.04x,” KR Choksey Research had said in a note.

Promising start for Uniparts’ public offer
 

Uniparts India’s initial public offering (IPO) was subscribed 58 per cent on Wednesday, the first day of the issue. A day earlier, the company had mobilised Rs 250 crore from anchor investors. Uniparts is a vertically-integrated precision solutions provider for the off-highway market in the agriculture; construction, forestry and mining (CFM) segment.

The price band for the IPO is set at Rs 548 to Rs 577 per share. At the top-end, the company will be valued at Rs 2,600 crore. The firm’s Rs 835-crore IPO is entirely an offer for sale. The IPO is priced at 15.6 times its FY22 earnings, which is “reasonable”, given its “robust financials”, said Motilal Oswal in a note.