Dharmaj Crop Guard Limited shield IPO incorporates a sparkling issue of shares really worth Rs 216 crore and a sale of 14.83 lakh stocks by promoters.
Dharmaj Crop Guard Limited defend IPO opened for subscription on Monday, 28 November, and will near on 30 November. The charge band for the IPO has been fixed Rs 216–237 according to proportion. Dharmaj Crop Guard Limited protect IPO comprises a fresh problem of stocks well worth Rs 216 crore and a sale of 14.eighty three lakh shares by way of promoters.
The organisation aims to elevate Rs 251.15 crore through the offer on the upper price band Dharmaj Crop defend shares had been commanding a grey market top rate (GMP) of Rs fifty five on Monday, in line with humans managing unlisted securities. The stocks of the organisation are expected to list on the stock exchanges BSE and NSE on Thursday, 8 December.
Dharmaj Crop Guard Limited defend is an agrochemical company engaged inside the commercial enterprise of manufacturing, dispensing, and advertising a wide range of agrochemical formulations. Promoters Manjulaben Rameshbhai Talavia will offload 7.09 lakh stocks, Muktaben Jamankumar Talavia 6.fifty six lakh shares, Domadia Artiben 87,500 shares and Ilaben Jagdishbhai Savaliya 30,000 stocks. beforehand of the IPO, the employer on Friday mobilised Rs 74.ninety five crore via anchor e book.
It finalised allocation of 31.sixty two lakh equity shares to anchor investors, at Rs 237 in step with share. 3 investors – Elara India opportunities Fund, Rajasthan worldwide Securities, and Resonance opportunities Fund – invested in the organization through anchor e-book.
Should you apply for Dharmaj Crop Guard Limited IPO at this time?
“The organization is to be had at the higher quit of the IPO rate band, it is provided at 27.9x its FY22 earnings and 9.4x to P/BV with a marketplace cap of Rs. eight,010 million. The valuation of the IPO appears to be affordable whilst we compare with listed peers. The enterprise has set up a distribution network, sturdy branded merchandise, and solid relationships with their institutional clients.
similarly to this, the government’s goal to reduce dependency on China and enhance self-sufficiency is expected to guide industry’s backward integration and hence its growth. Pursuant to the setup of this production facility, profit margins on merchandise could resultantly boom due to backward integration. considering the destiny prospect for the
organization we assign “Subscribe” rating to this IPO.”
“The upward momentum in pesticide industry output is anticipated to keep going ahead, backed by using a growth in food consumption inside the domestic marketplace amid an predicted growth in population, government assist for agriculture, demand from export markets, and the horticulture and floriculture markets, amongst others. The penetration of insecticides and agrochemicals in India is low, and this poses an opportunity for boom for agrochemical producers.
In addition to this, the authorities’s goal to reduce dependency on China and improve self-sufficiency is predicted to guide industry’s backward integration and hence its increase. the difficulty is priced at 20 PE of FY22 earnings, which is decrease than most of its listed friends, and the business enterprise has posted constant growth in both sales and earnings. profit margins also are growing continuously in a difficult surroundings, so we assign a “Subscribe” score to this IPO.”
Dharmaj Crop Guard Limited – Choice Broking: Subscribe with Caution
“At better price band, Dharmaj Crop Guard Limited defend Ltd is demanding a P/E a couple of of 27.9x (to its FY22 EPS of Rs. eight.5), which seems to be in-line to the peer common. consequently the issue seems to be absolutely priced. but thinking about the boom outlook and its potential to extend the profitability margin put up the commissioning of the agrochemical technical facility (around H2 FY24), we are assigning a “Subscribe with warning” score for the problem.
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“The set-up of the brand new factory will beautify the manufacturing capabilities of the enterprise and result in better income margins due to backward integration. but, a low degree of capability utilization of round 35% in FY2022 remains a key problem for the business. at the top stop of the fee band, the difficulty is valued at a P/E of 20.4x based totally on FY2022 income which we sense is fairly priced. subsequently, we endorse a “SUBSCRIBE” rating for the advantage of listing profits.”
Reliance Securities: Expensive valuation
“based on FY22 profits, the corporation is valued at 27.9x P/E, 18.9x EV/EBITDA and a pair of.1x EV/ income. The music report of respectable financials, numerous agrochemicals portfolio, sufficient home and worldwide footprint, better excellent assurance method and in-house R&D abilities, are key positives. however, the Agro Chemical enterprise is very competitive, with numerous big gamers dominating the market. It additionally desires strict technical understanding, great necessities, ordinary inspections and audits via clients.”
“the manufacturing of agrochemical formulations is complex any failure to observe particular protocols and techniques can effect the enterprise. some of these are key demanding situations for this commercial enterprise. The IPO is aggressively priced with high-priced valuation in comparison to different listed players and hardly ever leaves anything meaningful at the desk for traders.”