The ₹251.15-crore initial public offering (IPO) of Dharmaj Crop Guard was subscribed 1.80 times at the end of the Day 1 of issue opening, as retail, employee and HNIs show interest.
The issue closes on November 30 and comes at a price band of ₹216-237.
Retail Portion saw an early rush and was fully subscribed within three hours of the bidding and by the end of the day it was subscribed 2.60 times. Non-institutional segment saw a response of 1.80 times. The reserved portion for qualified institutional buyers saw a subscription of 0.35 times. Employee portion was subscribed 1.77 times.
Overall, the IPO received bids for about 1.44 core shares against the offered 80.13 lakh shares.
While 50 per cent of the IPO is reserved for qualified institutional buyers, retail investors can bid for up to 35 per cent, and HNIs 15 per cent.
The offer consists of a fresh issue of ₹216 crore and an offer-for-sale of ₹35.15 crore (91.13 lakh shares by promoters Manjulaben Rameshbhai Talavia, Muktaben Jamankumar Talavia, Domadia Artiben and Ilaben Jagdishbhai Savaliya).
Expansion plans
The company plans to use the funds for stting up a manufacturing facility at Saykha in Bharuch district of Gujarat; funding for incremental working capital requirements; for repayment and/ or pre-payment, in full and/ or part, of certain borrowings, and for general corporate purposes.
The company is engaged in the manufacture, distribution, and marketing of a range of agrochemical formulations such as insecticides, fungicides, herbicides, plant growth regulators, micro fertilisers and antibiotics, for B2C and B2B customers.