Incorporated in 2015, Dharmaj Crop Guard is an agrochemical company engaged in manufacturing, distributing, and marketing of a wide range of agrochemical formulations.
The company shares have been commanding a premium of Rs 40-45 in the grey market, which translated into 18-20% over its issue price of Rs 237. The premium in the unofficial market was around Rs 70 at its peak.
Analysts tracking the grey market suggested that the company has been holding strong tracking in-line valuations and strong bidding but current volatility is hurting its listing prospects. They are expecting a decent listing pop.
Manish Khanna, Co-Founder, Unlisted Assets, said Dharmaj Crop Guard is indicating a promising listing, thanks to its strong subscription and steady premium in the grey market.
“This sector is also poised to attract more multiples going forward as we see an increase in export opportunities for India going forward,” he said. “IPO allottees should hold the stock with a long-term perspective.”
Dharmaj Crop’s Rs 251-crore IPO was open for subscription between November 28 and 30 as the company sold its shares in the range of Rs 216-237 apiece, and its issue was overall subscribed 35.5 times.
The quota reserved for qualified institutional buyers was subscribed 48.21 times while the one for non-institutional investors, retailers and employees was subscribed 52.97 and 21.53 and 7.48 times, respectively.
Santosh Meena, Head of Research,
, said the company has seen healthy subscription figures for the IPO and there has been a good demand in the grey market.
“The industry outlook is bullish as the upward momentum in pesticide industry output is expected to continue going forward,” he added. “It has posted steady growth in both revenue and profit and profit margins are also rising.”
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