Dharmaj Crop Guard IPO – 10 things to know before subscribing

Nov 28, 2022

By: Rounak Jain

IPO opening and price band

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.

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Moderate grey market premium

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.

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How much is the IPO size?

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.

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What does the company do?

Dharmaj Crop Guard makes insecticides, fungicides, herbicides, plant growth regulator, micro fertilisers and antibiotics.

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Where is the company based out of?

Dharmaj Crop Guard is based out of Ahmedabad, Gujarat.

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Here’s what the company will use the money for

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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Total income and net profit

Dharmaj Crop Guard’s FY22 total income stood at ₹396 crore, while it made a net profit of ₹29 crore.

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Risks to the company’s business

Among the risks involved include a change in farmers’ incomes, commodity prices, reduction in government subsidies and incentives.

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Peers

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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Allotment and listing dates

The allotment date is December 5 and the shares will be listed on NSE and BSE on December 8.

Credit: BCCL

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