The ₹251.15-crore initial public offering of Dharmaj Crop Guard Ltd will open for subscription today. The issue, which closes on November 30, comes at a price band of ₹216-237.
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 fresh Issue to fund capital expenditure towards setting up a manufacturing facility at Saykha in Bharuch district; funding incremental working capital requirements; 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.
₹75 cr from anchor investors
The company also provides crop protection solutions to farmers to help them maximise productivity and profitability. It exports its products to more than 20 countries in Latin America, East Africa, West Asia and the Far East.
Ahead of the issue, the company mobilised ₹74.95 crore on Friday by allocating 31.62 lakh equity shares to three anchor investors -- Elara India Opportunities Fund, Rajasthan Global Securities and Resonance Opportunities Fund -- at ₹237 a share.