• Dharmaj Crop Guard IPO GMP: Shares of the agrochemical company are available at a premium of ₹60 today, say market observers
Dharmaj Crop Guard IPO: The initial public issue (IPO) of Dharmaj Crop Guard Limited is going to open for subscription on 28 November 2022 i.e. next week Monday. The price band of the public issue of ₹ 251.15 crore has been fixed at ₹ 216 to ₹ 237 per equity share. Meanwhile, ahead of Dharmaraj Crop Guard IPO subscription opening date, shares of the agrochemical company gained momentum in the gray market. According to market observers, shares of Dharmaj Crop Guard Ltd are available at a premium of ₹60 in the gray market today. Stock market experts are also expecting huge demand in this public issue which will open next week.
Dharmaraj Crop Guard IPO GMP today
Market observers said the Dharamj Crop Guard IPO gray market premium (GMP) at ₹60 today is ₹5 higher than yesterday's GMP of ₹55. He added that positive sentiment on Dalal Street and the company's growth record, could further increase the gray market premium as the public issue is expected to get a strong response from investors. He said that in the last three days, Dharmaj Crop Guard IPO GMP has moved from ₹35 to ₹60 level, which is commendable as the issue is yet to come to the primary markets.
What does this GMP mean?
The gray market observer said that Dharmaj Crop Guard IPO GMP is ₹60 today, which means that gray market is expecting Dharmaj Crop Guard IPO to be listed at around ₹297, which is around 25 from the upper price band of the issue price. the percentage is higher.
Dharmaraj Crop Guard IPO: Apply or not?
Speaking on Dharmaraj Crop Guard IPO, Abhay Doshi, Founder, UnlistedArena.com said, "Dharamraj Crop Guard is an agrochemical company engaged in the business of manufacturing, distributing and marketing a wide range of agrochemical formulations. The company has diversified K. Products with customers in domestic as well as international markets. Operations look relatively small compared to its peers, however, revenue, EBITDA and margins are growing. At the upper band, post fresh issue, demand P/ E Latest Post issue comes at around 27.8 times on FY22 earnings basis. However, huge demand is expected for the issue considering the growth and small issue size."
Giving a 'subscribe' tag to Dharmaj Crop Guard IPO, Swastika Investmart Research report says, "The pesticide industry is expected to continue to grow in production going forward, owing to the expected increase in population coupled with increase in food consumption in the domestic market, Government support to agriculture, demand from export markets, and horticulture and floriculture markets, among others."
The Swastika Investmart report further states that the government's aim to reduce dependence on China and improve self-reliance is expected to support backward integration of the industry and thus its growth. DGCL has been able to develop strong distribution channels and a stable, diversified product portfolio.
"The issue is priced at 20 PE to FY12 earnings, which is lower than most of its listed peers, and the company has posted consistent growth in both revenue and profits. Profit margins have also been steadily expanding in a tough environment." Hence we assign a "Subscribe" rating to this IPO. Swastika Investmart report concluded.
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