Dharmaj Crop Guard Ltd. IPO
Dharmaj Crop Guard Ltd.
IPO Listing Details
Listed On
BSE & NSE
Listed On
Issue Price
₹237
Issue Price
Listing Price
₹266
Listing Price
Listing Gains
+₹29.00 (+12.24%)
Listing Gains
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
229 Cr
Issue Size
Subscription Rate
- Retail Individual Investor21.53x
- Non-Institutional Investor52.29x
- Qualified Institutional Buyers48.21x
- Employees7.48x
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
1. If you are an Existing TradeSmart demat account holder and wish to apply for an Dharmaj Crop Guard Ltd. click here.
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