Dharmaj Crop Guard shares listed at a 12% premium over IPO price on NSE and BSE amid flat domestic market. Dharmaj Crop Guard stock made its market debut at Rs 266 on the BSE, as compared to the public issue price of Rs 237. The scrip shortly thereafter rose to Rs 279 per share. A stellar listing was expected as ahead of the market debut, Dharmaj Crop Guard shares were trading at a premium of Rs 55 in the grey market.
Santosh Meena, Head of Research, Swastika Investmart said, “Dharmaj debuted on the secondary market with a gain of around 15%, which is in line with market expectations. However, the long-term outlook remains positive, and the valuations are still reasonable, so investors can continue to hold this stock, while those who applied for listing gains can maintain a stop loss of Rs. 255.”
Dharmaj Crop Guard public issue was subscribed 35.49x, as the company caught the attention of investors. The QIB section was subscribed 48.12x, while the retail investors portion was subscribed 21.53x. The agrochemical company’s IPO received bids of over 28 crore shares for this issue of 80.12 lakh shares, according to the NSE. Prior to its listing, most analysts recommended investors to subscribe to the IPO. “At a higher price band, Dharmaj Crop Guard Ltd is demanding a P/E multiple of 27.9x, which seems to be in-line to the peer average,” said Choice Broking.
Dharmaj Crop Guard is an agrochemical company engaged in the business of manufacturing, distributing, and marketing a wide range of agrochemical formulations. Promoters Manjulaben Rameshbhai Talavia will offload 7.09 lakh shares, Muktaben Jamankumar Talavia 6.56 lakh shares, Domadia Artiben 87,500 shares and Ilaben Jagdishbhai Savaliya 30,000 shares. Ahead of the IPO, the company on Friday mobilised Rs 74.95 crore via anchor book. It finalised allocation of 31.62 lakh equity shares to anchor investors, at Rs 237 per share. Three investors – Elara India Opportunities Fund, Rajasthan Global Securities, and Resonance Opportunities Fund – invested in the company via anchor book.