Dhariwalcorp shares list at 41% premium at ₹150 per share on NSE SME platform

Trading firm Dhariwalcorp Ltd shares listed at a premium of 41% on Thursday, August 8, on the NSE SME platform, making a strong debut on the bourse.

According to exchange data, the company's shares started trading at ₹150 per share, showing gains of 41% over the issue price of ₹106 apiece.

The stock hit an intraday high of ₹152 per share before retreating to a low of ₹142.5 apiece. At 10:30 am, shares were trading at ₹142.5, up by 43% from the issue price but down by nearly 5% from the listing price.

In early trade, more than 7.42 lakh shares of the company changed hands on the bourse. The traded value was ₹10.97 crore. The company's market valuation stood at ₹128.59 crore.

Dhariwalcorp Ltd mobilises ₹25 crore from IPO

Dhariwalcorp Ltd raised ₹25.15 crore from public investors through its initial public offering this week. The company launched the IPO on August 1 and closed the bidding on August 5.

The Dhariwalcorp IPO comprised a fresh issue of 23.72 lakh shares. The company fixed the price band at ₹102 to ₹106 per share. The minimum lot size was 1200 shares, and the minimum amount of investment required was ₹127,200.

At the close of bidding on August 5, the IPO was booked more than 174 times, driven by strong demand from retail investors. According to the exchange data, total bids for 27.79 crore shares worth ₹2,946.38 crore were received against 15.88 lakh shares on offer for subscription.

Retail Individual Investors’ quota was booked nearly 184 times. Qualified Institutional Investors’ portion was subscribed nearly 77 times. The non-institutional investors’ segment was booked 279 times.

The company had raised ₹7 crore from anchor investors ahead of the launch of public subscription. Dhariwalcorp allotted 6,60,000 shares at a price of ₹102 per share to four fund schemes.

The anchor investors are Vikasa India EIF Abundantia Capital, VCC, Craft Emerging Market Fund PCC, and Beacon Stone Capital VCC.

Trading firm Dhariwalcorp has warehouses at different locations in India to facilitate its trading operations. Dhariwalcorp Ltd is in the business of importing and exporting a range of industrial chemicals, waxes, and petroleum jelly. The company is engaged in processing, purchasing, selling, importing, and trading various types of wax, including Paraffin Wax, Micro Wax, Slack Wax, and Carnauba Wax.

It is also in the trade of industrial chemicals such as Rubber Process Oil, Light Liquid Paraffin (LLP), Citric Acid Monohydrate, Refined Glycerin, and Bitumen. The company supplies products to various industries such as Plywood and Board, Paper Coating, Crayon Manufacturing, Candle Production, Textiles, and Pharmaceuticals.

The company has proposed to utilise IPO proceeds of ₹8.1 crore for meeting the capital expenditure towards the construction of a warehouse in Jodhpur. It has also proposed to use ₹8 crore of IPO proceeds to meet its working capital requirements.