Agrochemical-based company, Dharmaj Crop Guard Ltd, which listed today on the bourses was trading at a 17% premium over its issue price of 237 rupees on a early trade. The shares of the newly listed company began trading at 266 rupees on the exchanges, listing at 12% premium to IPO price. The stock hit a high at 278.90 rupees.
On the final day of the company's IPO subscription, the issue was subscribed 35.49 times. The agrochemical-based company's subscription was driven by strong response from non institutional investors, qualified institutional buyers, and retail investors on the third day.
The company received bids for 28.4 crore shares against 80.12 lakh shares on offer, according to data from the BSE.
The issue opened on November 28, and closed on November 30. A fresh issue of equity shares worth 216 crore rupees and an offer-for-sale of up to 1,483,000 equity shares by its current shareholders made 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.
The price band for the offer was determined at 216-237 rupees per equity share.
According to Prashanth Tapse, Research Analyst, Sr VP Research at Mehta Equities Ltd, investors should focus on long term holding as the market always rewards a player who has the growth potential, and if investors wish to add Dharmaj Crop on listing day one should wait for any profiting booking attempts to add and keep it for long term.
