Dharmaj Crop IPO subscribed 1.8 times on Day 1

29 Nov 2022 , 06:53 AM

On Monday, the first day, Dharmaj Crop Guard’s IPO received 1.8 times its initial subscription.

According to stock exchange data, the retail and high-net-worth person portions of the IPO have already been fully subscribed, while 35% of the institutional investor component has been taken up.

Dharmaj, an agrochemical firm, hopes to raise Rs216 crore through its initial public offering (IPO). In addition, the issue includes a secondary share sale for Rs35 crore.

If we annualize its four-month FY23 EPS of Rs7.44, then on the annualized FY23 EPS of Rs22,32, the issue is available at a P/E of 10.62x, which is reasonable in comparison to its rivals. Additionally, based on the prospectus, the valuation appears favorable when compared to the sector’s average P/E ratio of 24.04x, according to a KR Choksey Research study.