Nov 28, 2022
By: Rounak Jain
Credit: Dharmaj Crop Guard
The Dharmaj Crop Guard IPO opens on November 28 and will close on November 30. The price band is fixed at ₹216-237 per share.
Credit: Canva
The grey market premium (GMP) for the company’s shares stood at ₹35 per share. GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges.
Credit: Canva
The IPO size is ₹251 crore, out of which ₹216 crore is via a fresh issue of equity shares, while ₹35 crore is via an offer for sale by existing shareholders.
Credit: Canva
Dharmaj Crop Guard makes insecticides, fungicides, herbicides, plant growth regulator, micro fertilisers and antibiotics.
Credit: Canva
Dharmaj Crop Guard is based out of Ahmedabad, Gujarat.
Credit: Canva
The company intends to use the proceeds of the issue for setting up a new manufacturing facility in Gujarat, fulfilling working capital requirements and repaying some debts.
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Dharmaj Crop Guard’s FY22 total income stood at ₹396 crore, while it made a net profit of ₹29 crore.
Credit: Canva
Among the risks involved include a change in farmers’ incomes, commodity prices, reduction in government subsidies and incentives.
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Some of the key competitors of the company include Rallis India, India Pesticides, Bharat Rasayan, Astec Lifesciences, Punjab Chemicals and Crop Protection, and Heranba Industries.
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The allotment date is December 5 and the shares will be listed on NSE and BSE on December 8.
Credit: BCCL