IPO update: Uniparts India, Dharmaj Crop Guard to launch public issues next week

November is turning out to be one of the busiest months for the initial public offering (IPO) market as eight companies so far have successfully raised ₹9,500 crore through public listing of shares. Two more companies - Uniparts India and Dharmaj Crop Guard - are in queue to hit the primary market next week after receiving necessary approvals from the Securities and Exchange Board of India (SEBI). While the IPO of agrochemical company Dharmaj Crop Guard will open on November 28, the initial share sale of Uniparts India, a manufacturer of agriculture and construction equipment components, will begin for public subscription on November 30.

Here’s all you need to know about IPOs coming next week:

Uniparts India IPO to open on Nov 30

The three-day IPO of Uniparts India will open for public subscription on November 30 and close on December 2, 2022. The company has fixed a price band of ₹548 to ₹577 per share for the IPO, which is completely an offer for sale (OFS) of 14,481,942 equity shares by promoters and existing investors. At the upper price band, the issue would fetch ₹835.61 crore to the company.

Investors can make a bid for a minimum of 25 equity shares and in multiples of 25 shares thereafter. This means retail investors can buy a maximum of 325 shares worth ₹187,525.

Since the issue is entirely an OFS, the company will not receive any proceeds from the funds raised through the IPO.

This would be the third attempt by the company to go public. The engineering systems and solutions provider had earlier filed its document in December 2018 and in September 2014 for which it had received clearances but did not go ahead with the initial share sale.

As per the offer document filed with SEBI, promoter group entities, which currently hold a 75.3% stake in the company, will offload 9.75% shareholding via OFS. Karan Soni 2018 CG-NG Nevada Trust, Meher Soni 2018 CG-NG Nevada Trust, Pamela Soni, and investors Ashoka Investment Holdings and Ambadevi Mauritius will be offering their shares in the OFS.

The company has reserved 50% of the issue for qualified institutional buyers, 15% for non-institutional investors, and the remaining 35% for retail investors.

Established in 1994, Uniparts India is a global manufacturer of engineered systems and solutions and is one of the leading suppliers of systems and components for the off-highway market in the agriculture and construction, forestry and mining and aftermarket sectors on account of their presence across over 25 countries. The company's product portfolio includes core product verticals of 3-point linkage systems (3PL) and precision machined parts (PMP) as well as adjacent product verticals of power take-off (PTO), fabrications, and hydraulic cylinders or components.

Dharmaj Crop to launch IPO on Nov 28

The IPO of agrochemical company Dharmaj Crop Guard will open on November 28 and end on November 30. The Ahmedabad-based company has fixed a price band of ₹216–237 per share for its IPO. At the upper end of the issue price, the public offer would fetch ₹251 crore. The shares of the company are expected to be listed on the BSE and the NSE on December 8, 2022.

According to the document filed with the SEBI, the company will raise ₹216 crore by issuing fresh equity shares and the rest by an offer for sale (OFS) of up to 14,83,000 equity shares by the promoters and existing shareholders.

The IPO proceeds from the fresh issue of equity shares will be used for setting up a manufacturing facility in Gujarat, and meet working capital requirements along with repaying some debts.

Established in 2015, Dharmaj Crop Guard 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 antibiotic to the B2C and B2B customers. It exports its products to more than 20 countries in Latin America, East African Countries, Middle East and Far East Asia.