Dharmaj Crop Guard Ltd IPO

Upcoming DRHP

IPO Synopsis

Dharmaj Crop Guard Ltd., an agrochemical company based out of Ahmedabad, has flied its preliminary papers with SEBI to raise funds worth Rs.300 crores. The issue consists of fresh issue of equity shares worth up to Rs.216 crores with a face value of Rs.10 each and an offer-for-sale (OFS) of up to 14.83 lakh equity shares by existing shareholders.
Monarch Networth Capital and Elara Capital (India) are the book-running lead managers to the issue.


Objective of the Issue 
The objective of the issue lies toward: 
1. Rs.105 crore will be utilised for funding capital expenditure towards setting up of a manufacturing facility at Saykha Bharuch, Gujarat
2. Rs.45 crore for funding incremental working capital requirements
3. Rs.10 crore for the repayment or prepayment of borrowings 
4. general corporate purposes

About Dharmaj Crop Guard Ltd

Dharmaj Crop 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 fertilizers and antibiotic to the B2C and B2B customers. Through its distribution network, the company also makes sale through engaging in the marketing and distribution of agrochemical products under brands in-licensed by it, owned by it and through generic brands, to Indian farmers. It also offers crop protection solutions to the farmer to assist them to maximize productivity and profitability.
The company has 392 registrations for agrochemical formulations from the CIB&RC, out of which 201 agrochemical formulations are for sale in India as well as for export, 191 agrochemical formulations are exclusively for exports, application for further 6 agrochemicals formulations is pending at various stages and has over 150 trademark registrations including its own branded products.
Its key customers include Atul Limited, Heranba Industries Limited, Innovative Agritech Private Limited, Meghmani Industries Limited, Bharat Rasayan Limited, Oasis Limited, United Insecticides Private Limited and Sadik Agrochemicals Co. Ltd.
The company exports its products to more than 20 countries in Latin America, East African Countries, Middle East and Far East Asia. The branded products are sold in 12 states through network comprising over 3,700 dealers having access to 8 stock depots in India. 
The company provides education to farmers in regards to the benefits of using the company’s products by conducting farmer training programs such as field demonstrations, field shows, meetings with group of farmers, jeep campaigns and participating in village level programmes to establish direct relationship with farmer communities all over India.

Profit and Loss

Balance Sheet

Particulars (in Rs. Crores) FY21 FY20 FY19
Revenue 302.4 198.2 139.4
EBITDA 32.0 18.6 11.0
PAT 21.0 10.8 5.0
Particulars (in Rs. Crores) FY21 FY20 FY19
Total Assets 128.9 92.6 47.7
Share Capital 16.5 16.5 2.0
Total Borrowings 26.9 20.2 20.3
Particulars (in Rs. Crores) FY21 FY20 FY19
Net cash generated from / (used in) operating activities 12.88 2.05 3.27
Net cash from / (used in) investing activities -17.73 -14.65 -3.95
Net cash flow from / (used in) financing activities 5.50 12.06 0.43
Net increase (decrease) in cash and cash equivalents 0.65 -0.54 -0.25

Peer Comparison

Name of the Company Total Revenue Basic EPS Nav Rs. per share PE RoNW%
Dharmaj Corp Guard Limited 302.4 8.5 22.8 NA 37.3%
Rallis India 2429.4 11.8 81.8 23.4 14,4%
India Pesticides 649.0 12.1 33.8 26.6 34.5%
Punjab Chemical & Corp Protection 678.2 40.0 117.9 37.6 34.0%
Bharat Rasayan 1092.0 385.7 1750.3 32.4 22.5%
Astec Lifesciences 554.9 33.2 157.9 45.7 23.4%
Heranba Industries 1218.6 39.4 132.0 16.6 29.2%


The key points are-

Key Points

  • Strengths

    1. Diversified portfolio of the products and consistent focus on quality and innovation
    2. Strong R&D capabilities with focus on innovation and sustainability.
    3. Established distribution network with strong branded products and stable relationship with its institutional customers

  • Risks

    1. Failure to successfully obtain required registrations or maintain statutory and regulatory permits and approvals required to operate, would affect the business and manufacturing facility operations
    2. Failure to comply with the quality standards, technical specifications, regular inspections and audits prescribed by customers may lead to loss of business from such customers
    3. The company does not generally enter into long-term agreements with majority of its customers
    4. Inability to identify and understand evolving industry trends, technological advancements, customer preferences and develop new products to meet customers’ demands
    5. The business is subject to climatic conditions and is cyclical in nature, thus, seasonal variations and unfavourable local and global weather patterns may have an adverse effect on the business
    6. If the company fails to meet the standard norms laid by governments locally or globally, then the products are at a risk of being banned or suspended or become subject to significant compliance costs

How to apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

FAQs

What is the price band of the IPO?

Dharmaj Crop IPO details are yet to be announced.

When does the Dharmaj Crop issue open and close?

Dharmaj Crop IPO details are yet to be announced.

What is the size of Dharmaj Crop IPO issue?

The IPO consists of fresh issue of equity shares worth up to Rs.216 crores with a face value of Rs.10 each and an offer-for-sale (OFS) of up to 14.83 lakh equity shares.

Who are the promoters/key personnels of Dharmaj Crop?

Dharmaj Crop is promoted by Rameshbhai Ravajibhai Talavia, Jamankumar Hansarajbhai Talavia, Jagdishbhai Ravjibhai Savaliya and Vishal Domadia.

What is the allotment date of Dharmaj Crop IPO?

Dharmaj Crop IPO details are yet to be announced.

What is the Dharmaj Crop IPO listing date?

Dharmaj Crop IPO details are yet to be announced.

Who are the book runners for Dharmaj Crop IPO?

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

What is the objective of the issue?

The proceeds from the issue will be used in the following manner:

1. Rs.105 crore will be utilised for funding capital expenditure towards setting up of a manufacturing facility at Saykha Bharuch, Gujarat
2. Rs.45 crore for funding incremental working capital requirements
3. Rs.10 crore for the repayment or prepayment of borrowings 
general corporate purposes
 

How to apply for the Dharmaj Crop IPO?

To apply for the IPO, follow the steps given below

1. Login to your 5paisa account and select the issue in the current IPO section
2. Enter the number of lots and price at which you wish to apply for
3. Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
4. You will receive a mandate notification to block funds in your UPI app
 

Open Demat Account