Shares of Dharmaj Crop Guard, whose Rs 251.15 crore IPO ran from November 28 to November 30, will make market debut on Thursday. Last heard, the issue was commanding a grey market premium (GMP) of Rs 44 apiece. The GMP for the issue has seen some fall in the recent days, yet it suggests a likely 18 per cent listing pop, as of today.
The IPO, which was sold in the Rs 216-237 range, was a hit among investors, as the issue received 35.49 times bids, led largely by strong participation from HNIs and qualified institutional buyers (QIBs).
The quota reserved for non-institutional institutional investors was subscribed 52.29 times; QIB quota was subscribed 48.21 times while the quota reserved was subscribed 21.53 times. The quota reserved for employees received 7.48 times bids.
Dharmaj Crop Guard, is an agrochemical company engaged in the business of manufacturing, distributing and marketing of a wide range of agrochemicals such as insecticides, fungicides, herbicides, plant growth regulator, micro fertilisers and antibiotic to the B2C and B2B customers. The company exports its products to more than 20 countries.
Key customers included Heranba Industries, Atul, Meghmani Industries, Bharat Rasayan, Oasis, Innovative Agritech, Sadik Agrochemicals and United Insecticides.
The company’s revenue from operations rose 30.36 per cent to Rs. 394.21 crore for the FY22 compared with Rs 302.41 crore in FY21, led by increase in sales of its branded products, institutional sales and addition of more dealers and customers. Net profit was up 36.88 per cent at Rs 28.69 crore in FY22 against Rs 20.96 crore in FY21.
The IPO had received ‘subscribe’ rating from Anand Rathi and KRChoksey Shares & Securities and a ‘Neutral’ rating from SMC Global.
If one annualises the company’s four months FY23 EPS of Rs 7.44 (till July 2022), then on the annualised FY23 EPS of Rs 22.32, the issue was available at a PE of 10.62 times, which compared to its peers looked quite cheap, said KR Choksey Shares & Securities in a pre-IPO note.
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