Dharmaj Crop Guard Ltd's initial public offering (IPO), which opened for subscription on Monday, was driven by strong response from non institutional investors, and retail investors on the second day. The issue was subscribed 5.97 times.
The company received bids for 4.79 crore shares against 80.12 lakh shares on offer, according to data from the BSE. The issue will close on Wednesday.
The non institutional investors' portion was subscribed 8.74 times. The company received bids for 1,49,74,080 shares against 17,14,200 on offer for this segment.
The retail investors' portion was subscribed 7.75 times. The company received bids for 3,09,87,720 shares against 39,99,800 on offer for this segment.
The portion set aside for qualified institutional buyers was subscribed 76 percent. Further, the portion set aside for employees was subscribed 3.75 times.
The price band for the offer has been determined at ₹216-237 per equity share.
A fresh issue of equity shares worth ₹216 crore and an offer-for-sale of up to 1,483,000 equity shares by current shareholders make up the issue.
The net proceeds of the fresh issue will be utilised to fund capital expenditure towards setting up of a manufacturing facility at Saykha, Bharuch, Gujarat, working capital requirements, repayment or pre-payment of loans and general corporate purposes.
As per the DRHP, the Gujarat-based company is an agrochemical company engaged in the business of manufacturing, distributing, and marketing of a wide range of agro chemicals such as insecticides, fungicides, herbicides, plant growth regulator, micro fertilizers and antibiotic to the B2C and B2B customers.
Broking houses like SBI Securities, Anand Rathi Shares and Stock Brokers, BP Equities, Canara Bank Securities, Marwadi Financial Services, Choice Broking and Swastika Investmart have given a 'subscribe' rating to the issue.
The company's issue was subscribed 1.79 times on the first day.