Dharmaj Crop Guard, Venus Pipes & Tubes Get SEBI Nod For IPOs

Agro-chemical manufacturer Dharmaj Crop Guard and steel pipe maker Venus Pipes & Tubes have received regulatory approvals from capital market regulator Securities Exchange Board Of India (SEBI) to raise funds through initial public offerings (IPOs).

Both the companies had filed their preliminary IPO papers with the SEBI between December 2021 and January 2022. These companies obtained SEBI's "observations" during March 29-31 2022, as per an update with SEBI.

In SEBI's parlance, the issuance of observation letter means the regulator's go-ahead to float IPO.

Dharmaj Crop Guard

According to the Draft Red Herring Prospectus (DRHP), Dharmaj Crop Guard's IPO consists of a fresh issue of equity shares worth up to Rs 216 crore and an offer-for-sale (OFS) of up to 14.83 lakh shares by its existing shareholders.

Eligible employees of the company will also be able to subscribe to shares reserved for them, the draft paper said.

According to market sources, the Ahmedabad-based firm looks to raise between Rs 250 crore and Rs 300 crore.

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

Promoters Manjulaben Rameshbhai Talavia, Muktaben Jamankumar Talavia, Domadia Artiben, and Ilaben Jagdishbhai Savaliya will be selling shares via OFS. The offer also includes shares reserved for its eligible employees.

The company has been engaged in manufacturing and marketing of a wide range of agro-chemical formulations such as insecticides, fungicides, herbicides, plant growth regulators, micro fertilisers, and antibiotics.

Venus Pipes & Tubes

Venus Pipes & Tubes said that 50.74 lakh equity shares of the company will be sold through IPO.
The proceeds from the IPO will be used to financing capacity development and backward integration for hollow pipe manufacturing, to satisfy working capital requirements, and for general company reasons, according to the draft paper.

SMC Capitals Limited is the sole book-running lead manager to the issue. The equity shares of the company are proposed to be listed on BSE and NSE.

The firm sells its goods under the brand name 'Venus' in a variety of industries, including chemicals, engineering, fertilisers, pharmaceuticals, power, food processing, paper, and oil and gas.

Venus Pipes and Tubes Limited is one of the growing stainless steel pipes and tubes manufacturers and exporters in the country having over six years of experience in manufacturing of stainless steel tubular products in two broad categories namely seamless tubes/pipes; and welded tubes and pipes. The company holds pride in supplying its wide product range to more than 20 countries internationally.