Dharmaj Crop Guard IPO opens today; check share price, lot size and other details

Agrochemical company Dharmaj Crop Guard will launch its Initial Public Offering (IPO) today, 28 November. The IPO is looking to raise a total of Rs 251 crore through a fresh issue of shares and an offer for sale from existing shareholders. The fresh issue of shares will amount to Rs 216 crore and the offer for sale will raise Rs 35 crore. Qualified institutional investors (QIIs) are getting 50 per cent of the issue, while 35 per cent is reserved for retail investors. The remaining 15 per cent has been set for non-institutional players. The company has reserved 55,000 equity shares for employees, who will also get a 5 per cent discount.

The price band of the IPO has been fixed between Rs 216 to Rs 237 per share. The Ahmedabad-based company’s IPO will close on 30 November. The IPO’s share allotment is expected to be finalized by 5 December and will be credited to the investors’ Demat accounts by 6 December.

The total proceeds from the fresh issue will be utilized for establishing a manufacturing facility in Gujarat, fulfilling working capital needs and repaying some debts. The IPO’s lot size is 60 shares, and the retail investors can apply for a maximum of 14 lots, which amounts to 840 shares, for Rs 1,99,080 at the upper price band.

Dharmaj Crop Guard deals with the manufacturing, marketing, and distribution of various agrochemical formulations like fungicides, insecticides, herbicides, plant growth regulators, micro fertilisers and antibiotics to B2B and B2C segments.

The company sells crop protection solutions to farmers for helping them in shielding crops from damage done by insects. It also exports its products to over 20 nations across Latin America, the Middle East, East Africa, and East Asia.

As the revenue of the company is dependent on farmers purchasing the pesticides, any alteration in the commodity prices, farmers’ income, or reduction in government subsidies, and incentives can negatively affect its business, according to Business Insider.

The net profit of Dharmaj Crop Guard doubled to Rs 20.96 crore in FY21 against Rs 10.76 crore in FY20.

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