Dharmaj Crop Guard IPO: Agrochemicals firm files papers to raise up to Rs 300 crore

Agrochemicals company Dharmaj Crop Guard has filed preliminary papers with capital markets regulator Sebi to raise up to Rs 300 crore through an initial share-sale.

The initial public offering (IPO) consists of fresh issue of equity shares worth up to Rs 216 crore and an offer-for-sale (OFS) of up to 14.83 lakh equity shares by existing shareholders, according to the draft red herring prospectus (DRHP).

The offer also includes a reservation for subscription by eligible employees.

As per market sources, the Ahmedabad-based company looks to raise anywhere between Rs 250 crore and Rs 300 crore.

Proceeds from issue will be used for funding capital expenditure towards setting up of a manufacturing facility at Saykha Bharuch in Gujarat, funding incremental working capital requirements, payment of debt and general corporate purposes.

The company is engaged in the business of manufacturing, distributing, and marketing of a wide range of agro chemical formulations such as insecticides, fungicides, herbicides, plant growth regulator, micro fertilisers and antibiotics to B2C and B2B customers.

The company exports its products to more than 20 countries across Latin America, East Africa, Middle East and Far East Asia.

Elara Capital (India) Private Limited and Monarch Networth Capital Limited are the book running lead managers to the issue.