Dharmaj Crop Guard IPO: GMP rises ahead of subscription opening

As per market observers, Dharmaj Crop Guard shares are available at a premium (GMP) of ₹45 in the grey market today, up from ₹25 in the previous session. The shares of the company are expected to list on the stock exchanges BSE and NSE on Thursday, December 8, 2022.

Dharmaj Crop Guard IPO consists of fresh issue of equity shares worth up to ₹216 crore and an offer-for-sale (OFS) of up to 14.83 lakh equity shares by existing shareholders.

Proceeds from the issue will be used for funding capital expenditure towards setting up of a manufacturing facility at Saykha Bharuch in Gujarat, funding incremental working capital requirements, payment of debt and general corporate purposes.

The company is engaged in the business of manufacturing, distributing, and marketing of a wide range of agrochemical formulations such as insecticides, fungicides, herbicides, plant growth regulator, micro fertilizers and antibiotic to the business-to-consumer (B2C) and Business-to-business (B2B) customers. 

The company also provides crop protection solutions to the farmer to assist them to maximize productivity and profitability. It exports its products to more than 25 countries across Latin America, East African Countries, Middle East and Far East Asia. The revenue from operations for Fiscals 2020 and 2021 and seven months period ended on October 31, 2021, was ₹1,982.22 million, ₹3,024.10 million and ₹2,272.62 million, respectively.

Elara Capital (India) Private Limited and Monarch Networth Capital Limited are the book running lead managers to the issue. Link Intime India Private Ltd is the registrar of the initial share sale.