Dharmaj Crop Guard Ltd. IPO

Dharmaj Crop Guard Ltd.

IPO Details

Bidding Dates

28 Nov - 30 Nov '22

Bidding Dates

Min. Investment

₹12,960

Min. Investment

Lot Size

60.00

Lot Size

Price Range

₹216 - ₹237

Price Range

Issue Size

173 Cr

Issue Size

IPO Doc

(D)RHP PDF  

(D)RHP PDF

Subscription Rate

  • Retail Individual Investor
    21.53x
  • Non-Institutional Investor
    52.29x
  • Qualified Institutional Buyers
    48.21x
  • Employees
    7.48x


About Company

Dharmaj Crop Guard Ltd, an agrochemical company will launch its initial public offering (IPO) on November 28, Monday. This will be the ninth public issue in the month of November. Dharmaj Crop Guard is engaged in the business of manufacturing, distributing, and marketing a wide range of agrochemical formulations. These include insecticides, fungicides, herbicides, micro fertilizers, plant growth regulators, and antibiotics for B2C and B2B customers. The company also provides crop protection solutions to farmers that help them maximize productivity and profitability. It sold more than 196 institutional products to over 600 customers in India and the international markets as of November 30, 2021. It exported products to more than 20 countries in Latin America, East African Countries, the Middle East and Far East Asia. The company's manufacturing facility is located in Ahmedabad, Gujarat. It also has a research and development (R&D) centre at the manufacturing facility. Dharmaj Crop Guard IPO will open for public subscription on November 28 and close on November 30. The price band for the offer has been fixed at Rs 216 - Rs 237 per share. The IPO comprises a fresh issue of shares worth Rs 216 crore and an offer for sale (OFS) of 14.83 lakh shares by promoters worth Rs 35.15 crore. This makes Dharmaj Crop Guard IPO size worth Rs 251.15 crore at the upper price band. The company plans to use the fresh issue proceeds for funding capital expenditure towards setting up a manufacturing facility at Saykha, Gujarat, incremental working capital requirements, repaying some debts and general corporate purposes.

Important Dates - Dharmaj Crop Guard IPO

Application opens on 28th November 2022
Last date of application 30th November 2022
Date of Allotment 5th December 2022
Refund begins from 6th December 2022
Credit of shares to Demat 7th December 2022
Listing date 8th December 2022

Why should you invest in Dharmaj Crop Guard Ltd. IPO?

Dharmaj Crop Guard Ltd operates in the agrochemical sector with its B2C and B2B model. The company has posted steady topline and bottomline growth and seems for a bright future with more product launches going ahead. The agrochemical sector is also witnessing fancy in the market.

 

Financial Snapshot - Dharmaj Corp Guard IPO

Dharmaj Corp Guard has reported steady growth in financial performance over recent years. Check out its recent earnings:

Financial Year Total Assets Total Revenues Net Profit
March 2020 Rs 92.58 crore Rs 199.16 crore Rs 10.76 crore
March 2021 Rs 128.87 crore Rs 303.56 crore Rs 20.96 crore
March 2022 Rs 219.54 crore Rs 396.29 crore Rs 28.69 crore

 

Dharmaj Crop Guard Ltd IPO Noteworthy Highlights

Here are some of the key details and information about Dharmaj Crop Guard IPO that investors should know before investing:

- The crop protection solutions provider Dharmaj Crop Guard manufactures several agrochemical formulations, and its branded products are sold in 12 states through a network comprising over 3,700 dealers having access to 8 stock depots in India, as of November 30, 2021.

- Rameshbhai Talavia, Jamankumar Talavia, Jagdishbhai Savaliya and Vishal Domadia are the promoters of Dharmaj Corp Guard.

- The promoters hold a 100% stake in the company. Their shareholding will drop to 73.03% after the IPO.

- Dharmaj Crop Guard IPO lot size is 60 shares, and a retail-individual investor can apply for up to 14 lots, making the total investment of 840 shares or Rs 199,080.

- Elara Capital and Monarch Networth Capital are the joint Book Running Lead Managers (BRLMs) to the issue. 

- The company has reserved 50% of the offer for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 35% for retail investors.


Dharmaj Crop Guard Ltd. IPO - SWOT Analysis

Strengths

Dharmaj Crop Guard has a diversified portfolio of products with a consistent focus on quality and innovation. The company has strong R&D capabilities with a focus on innovation and sustainability. It has an established distribution network, strong branded products and stable relationships with its institutional customers. The financial performance over the years has been decent and is expected to see further growth ahead.

Weaknesses

The company typically does not enter into long-term agreements with the majority of its customers, which would have a material adverse effect on its business, results of operations and financial condition. It is also subject to strict technical specifications, quality requirements, regular inspections and audits by its customers.

Opportunities

The upward momentum in pesticide industry output is expected to continue going forward, backed by growth in food consumption in the domestic market amid an expected increase in population, government support towards agriculture, demand from export markets, horticulture and floriculture market, among others. The penetration of pesticides and agrochemicals in India is low, and this poses an opportunity for growth for agrochemical producers. In addition to this, the government’s aim to reduce dependency on China and improve self-sufficiency is expected to support the industry’s backward integration and, thus, its growth.

Threats

Dharmaj Crop Guard’s business is subject to climatic conditions and is cyclical in nature. Hence, seasonal variations and unfavourable local and global weather patterns may have an adverse effect on its business. An adverse change in the regulations governing the company’s business or the development of its products and their usage by its customers also poses a threat.

 

Dharmaj Crop Guard IPO Grey Market Premium

Date GMP
25th November Rs.35
24th November Rs.30



How to apply for Dharmaj Crop Guard Ltd. IPO?

You can apply for the Dharmaj Crop Guard Ltd. IPO in these ways:

UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.

Demat Account

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Dharmaj Crop Guard Ltd. IPO FAQs

What are the opening and closing dates for Dharmaj Crop Guard IPO?

Dharmaj Crop Guard IPO will open for subscription on November 28 and close on November 30.

What is the price band for Dharmaj Crop Guard IPO?

Dharmaj Crop Guard IPO price band is Rs 216 to 237 per share.

What will be the post-issue market cap of the company?

The post-issue market cap of the company will be around Rs 801 crore, based on the upper limit of the price band.

What is Dharmaj Crop Guard IPO Minimum and Maximum Lot Size?

Dharmaj Crop Guard IPO lot size is 60 shares and in multiple thereof. A retail-individual investor can opt for up to 14 lots.

What will be the promoter shareholding in Dharmaj Crop Guard after the IPO?

The promoter shareholding in Dharmaj Crop Guard after the IPO will reduce to 73.03% from 100%.

Who are Dharmaj Crop Guard IPO Lead Managers?

The Book Running Lead Managers (BRLMs) to the issue are Elara Capital and Monarch Networth Capital.

Who is the registrar of the issue?

Link Intime India Pvt Ltd. is the registrar for Dharmaj Crop Guard IPO.

When will Dharmaj Crop Guard IPO allotment take place?

The finalisation of the basis of allotment for Dharmaj Crop Guard IPO will be done on December 5, and the allotted shares will be credited to investors’ demat accounts on December 6.

When and where will the Dharmaj Crop Guard shares be listed?

Dharmaj Crop Guard shares are proposed to be listed on December 8 on BSE and NSE.

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