As Dalal Street had predicted, Dharmaj Crop's listing was strong as the stock was trading at a double-digit premium in the gray market, which is an unofficial market for trading applications and shares before they are officially listed.

Agrochemical company Dharmaj Crop Guard Limited made its debut on Indian bourses today as the stock gave over 12% listing gains to investors on the opening day itself. 

Dharmaj Crop Guard is an agrochemical company that was incorporated in 2015. The company specializes in the manufacture, distribution, and marketing of insecticides, fungicides, herbicides, plant growth regulators, micro fertilizers, and antibiotics for both businesses and customers. It also provides crop protection solutions to farmers to help them safeguard their produce. 

The company has exported in 20+ countries in Latin America, East African Countries, the Middle East, and Far East Asia. It has manufacturing and R&D facilities along with a vast distribution network of over 3,700 dealers. 

Before the IPO was floated on 28th November, the company failed to bring in a lot of investors for its anchor book as it managed to raise Rs 74.95 crores from 3 investors. Elara India Opportunities Fund, Rajasthan Global Securities, and Resonance Opportunities Fund were its anchor book investors. 

However, contrary to the muted participation in its anchor book, its IPO saw overwhelming participation. QIBs, who had 50% of the Rs 250 crore offer reserved for them, flocked to subscribe as their portion was subscribed 48.21x times! HNIs and RIIs followed suit as their portions were oversubscribed 52.29x and 21.53x times respectively. This meant that the entire public issue was oversubscribed 35.49x times!! 

Analysts expected the stock to give fair listing gains as the stock was trading at a premium of Rs 38 or 16% in the grey market early today. 

The stock opened at Rs 266.05 per share, listing at a premium of 12.3%. The stock initially witnessed a buying trend as it touched a high of Rs 279 during the day. However, sellers rushed in and drove the stock down as it ultimately closed at Rs 266.30 per share, reasonably close to its listing, registering gains of 12.4%.

The investment of Rs 14,220 per lot (Rs 237 per share x 60 shares) improved to Rs 15,978 (Rs 266.30 x 60 shares) after Dharmaj Crop Guard's debut today. 

Due to the company's strong R&D capabilities, a vast portfolio of branded formulations and its reasonable valuation, analysts suggest that individuals stay invested for the long term. Fresh investors are advised to wait for profit booking attempts and then add in the stock for long-term holding. 

Article by Aman Agarwal.



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