Dharmaj Crop Guard IPO
Dharmaj Crop Guard Ltd., an agrochemical company based out of Ahmedabad, has flied its preliminary papers with SEBI to raise funds...
IPO Details
- Open Date
28 Nov 2022
- Close Date
30 Nov 2022
- IPO Price Range
₹ 216 to ₹237
- IPO Size
₹ 251.15 Cr
- Listing Exchange
BSE, NSE
- Listing Date
08 Dec 2022
IPO Timeline
Last Updated: 01 December 2022 12:20 AM by 5Paisa
Dharmaj Crop Guard Ltd., an agrochemical company based out of Ahmedabad’s IPO opens on Nov 28, 2022, and closes on Nov 30, 2022. The issue worth ~Rs. 251 crores consist 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. The price band is fixed between Rs. 261 and Rs. 237 per share while the lot size is set for 60 shares per lot. The listing date is set for 8th December and the shares will be allotted on 5th December.
Monarch Networth Capital and Elara Capital (India) are the book-running lead managers to the issue.
Objective of Dharmaj Crop Guard
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
Dharmaj Crop Guard IPO Video
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.
Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
---|---|---|---|
Revenue | 394.2 | 302.4 | 198.2 |
EBITDA | 46.2 | 32.0 | 18.6 |
PAT | 28.7 | 21.0 | 10.8 |
Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
---|---|---|---|
Total Assets | 219.5 | 128.9 | 92.6 |
Share Capital | 24.7 | 16.5 | 16.5 |
Total Borrowings | 36.9 | 26.9 | 20.2 |
Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
---|---|---|---|
Net cash generated from / (used in) operating activities | 16.41 | 12.88 | 2.05 |
Net cash from / (used in) investing activities | -23.87 | -17.73 | -14.65 |
Net cash flow from / (used in) financing activities | 7.45 | 5.50 | 12.06 |
Net increase (decrease) in cash and cash equivalents | 0.00 | 0.65 | -0.54 |
Peer Comparison
Name of the Company | Total Revenue | Basic EPS | Nav Rs. per share | PE | RoNW% |
---|---|---|---|---|---|
Dharmaj Corp Guard Limited | 220.9 | 7.44 | 40.99 | NA | 18.2% |
Rallis India | 2603.9 | 8.44 | 87.25 | 27.45 | 9.7% |
India Pesticides | 716.1 | 13.78 | 55.39 | 18.53 | 24.8% |
Punjab Chemical & Corp Protection | 933.5 | 68.07 | 184 | 17.51 | 37.0% |
Bharat Rasayan | 1301.2 | 423.52 | 1,853.11 | 24 | 22.9% |
Astec Lifesciences | 676.6 | 45.87 | 202.33 | 45.92 | 22.7% |
Heranba Industries | 1450.4 | 47.25 | 178.55 | 10.8 | 26.5% |
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
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FAQs
The lot size of Dharmaj Crop IPO is 60 shares and minimum investment required is Rs. 12960 for 60 shares
The price band of Dharmaj Crop IPO is Rs. 216 to Rs. 237.
Dharmaj Crop Guard IPO opens on Nov 28, 2022, and closes on Nov 30, 2022
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.
Dharmaj Crop is promoted by Rameshbhai Ravajibhai Talavia, Jamankumar Hansarajbhai Talavia, Jagdishbhai Ravjibhai Savaliya and Vishal Domadia.
The allotment date of Dharmaj Crop IPO is 5th December
The Dharmaj Crop IPO listing date is 8th December
Monarch Networth Capital and Elara Capital (India)are the book running lead managers to 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
4. general corporate purposes
To apply for the IPO, follow the steps given below
• 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
Contact Information
Dharmaj Crop Guard
Dharmaj Crop Guard Limited
Plot No. 408 to 411,
Kerala GIDC Estate, Off NH-8, At: Kerala,
Taluka Bavla, Ahmedabad – 382220
Phone: +91-79-29603735
Website: http://www.dharmajcrop.com/
Dharmaj Crop Guard IPO Register
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: dharmaj.crop@linkintime.co.in
Website: https://linkintime.co.in/
Dharmaj Crop Guard IPO Lead Manager
Elara Capital (India) Private
Monarch Networth Capital Ltd