Agrochemical-based company, Dharmaj Crop Guard Ltd, which filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in January 2022, is set to open the issue for subscription on November 28. The issue will remain open till November 30.
Investors may place a minimum bid of 60 equity shares and in multiples thereafter. The company has set the price band for its initial public offering (IPO) at ₹216-237 per share having a face value of ₹10 each.
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.
Promoters who have offered shares for sale are Rameshbhai Ravajibhai Talavia with 36.5 percent stake, Jamankumar Hansarajbhai Talavia with 33.4 percent stake, Jagdishbhai Ravjibhai Savaliya with 2.1 percent stake, and Vishal Domadia with 5.2 percent stake.
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.
Elara Capital and Monarch Networth Capital are the book running lead managers to the issue.
The company’s revenue from operations grew 30.36 percent to ₹394.21 crore for the fiscal 2022 against ₹302.41 crore for the fiscal 2021, primarily due to increase in sales of its branded products, institutional sales and addition of more dealers and customers, while its net profits grew 36.88 percent from ₹20.96 crore in FY21 to ₹28.69 crore in FY22.