Introduction
The race to launch an IPO this year is not yet completed. There is another upcoming IPO from the agrochemical sector from Dharmaj Crop Guard Limited. The company is well-established in this segment catering to both national and international consumers.
Dharmaj Corp Guard IPO issue was open for subscription from 28th to 30th November 2022. Investors who subscribed to this IPO can check their allotment status today, 5th December 2022.
Here are all the important details of Dharmaj Crop Guard Limited IPO, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
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IPO Details
The various details of the Dharmaj Crop Guard Limited IPO are as under.
- IPO Size
The size of the IPO and different categories of the issue are,
| Category | Details |
| IPO Opening Date | 28th November 2022 |
| IPO Closing Date | 30th November 2022 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Rs.10 per share |
| IPO Price Band | Rs.216 – Rs.237 per share |
| IPO Size | Rs.251 crores (1,05,96,924 shares) |
| Offer For Sale | Rs.35 crores (14,83,000 shares) |
| Fresh Issue | Rs.216 crores (91,13,924 shares) |
- IPO Dates
The important dates for the Dharmaj Crop Guard Limited IPO are highlighted below.
| Event | Date |
| Opening date | 28th November 2022 |
| Closing Date | 30th November 2022 |
| Allotment date | 5th December 2022 |
| Refund Date | 6th December 2022 |
| Share Credit Date | 6th December 2022 |
| Listing Date | 8th December 2022 |
- IPO Lot Sizes
Investors can subscribe to the shares of Dharmaj Crop Guard Limited IPO in pre-defined lots. The details of the lot sizes for this IPO are mentioned below.
| Category | Details |
| Investment in lots (for retail investors) | Minimum – 1 lotMaximum – 14 lots |
| Shares | Minimum – 60Maximum – 840 |
| Investment amount | Minimum – Rs. 14,220 Maximum – Rs. 1,99,080 |
- IPO Reservation
The categories of eligible investors and their share in the IPO are tabled below
| Category of Investor | Reservation Percentage |
| QIB (Qualified Institutional Buyers) | 50% |
| NII (Non-Institutional Bidders) | 15% |
| RII (Retail Individual Investors) | 35% |
Dharmaj Crop Guard Limited IPO Objectives
This company is a 100% promoter owned company. The IPO is partly a fresh issue and partly an offer for sale.
The key objectives of the IPO are stated below:
- IPO proceeds will be used for meeting the capital expenditure of setting up a manufacturing unit in Saykha, Bharuch, Gujarat.
- IPO proceeds will also be used for incremental working capital needs and repayment and/or prepayment in full or part of the company’s existing borrowings.
- Company plans to use remaining IPO proceeds for general corporate purposes.
About Dharmaj Crop Guard Limited IPO
Dharmaj Crop Guard Limited belongs to the agrochemical sector and caters to both B2B and B2C customer categories. The company manufactures, distributes, and markets different products in the agrochemical sector like insecticides, fungicides, herbicides, plant growth regulators, micro fertilizers, and antibiotics. The distribution and marketing of these products are done through licensed brands that are owned by the company as well as generic brands for Indian farmers. These products are aimed to increase the productivity and profitability of the farmers.
Here are some of the top facts about Dharmaj Corp Guard Ltd:
- Presence in more than 20 foreign countries through its exports.
- By the end of November 2021, the company had exported its products to more than 60 customers across 20 countries including Latin America, Middle East countries, East African countries, and Far East Asia.
- Company has more than 196 institutional products that have been sold to approximately 600 customers within the country as well as abroad.
- Domestically, the company supplies products to 12 states through an intricate network of about 3700 dealers with access to 8 stock depots in the country.
The manufacturing facility of the company is located in Ahmedabad Gujarat along with an R&D (Research and Development) Centre.
Financials of the company
Dharmaj Corp Guard financials are given in the table below:
| Year | Total Assets (Rs. In crores) | Operating Revenue (Rs. In crores) | Profit after tax (Rs. In crores) | Basic EPS(Rs.) | Diluted EPS(Rs.) | RONW |
| Mar-2022 | 219 | 394 | 29 | 11.62 | 11.62 | 34.64% |
| Mar-2021 | 129 | 302 | 21 | 12.74 | 12.74 | 37.33% |
| Mar-2020 | 92 | 198 | 11 | 8.62 | 8.62 | 30.55% |
(Source: RHP)
Strengths of the company
Some of the key strengths of Dharmaj Crop Guard Limited that investors can take note of are:
| Category | Details |
| Business model and financials | The company has seen a steady increase in its top line as well as bottom line over the past years indicating strong fundamentals too.Company has a diverse range of products within the agrochemicals segment and enjoys a stronghold in the domestic and international market. The company has maintained strong customer relationships by focusing on quality and branded products. It also has a well-established distribution network. |
| Future prospects | The company has a strong R&D facility that focuses on innovation and sustainability. It also enjoys a niche place in this sector that is backed by strong branding, and effective promotional and digital activities. |
| Management | Company’s promoters and management are highly experienced in this sector and can aid its future progress. |
Risks of investment
Here are some of the risks that investors of Dharmaj Crop Guard Limited IPO should know:
| Category | Details |
| Business viability and profitability | Being in the agrochemical sector, the company has to obtain and maintain mandatory permissions, approvals, licences, etc. for its smooth operations. There is always a risk of adverse reactions for not meeting these mandatory requirements within the country or internationally. The manufacturing and R&D unit is concentrated in a single location which can be detrimental to its survival in any unfortunate situation. |
| Competition | The company has to face competition in both domestic and international markets. This may impact its bottom line in the future. |
| Industry outlook | The performance of the company and the sector as a whole is subject to climatic and cyclical conditions of nature. |
What is the Grey Market Premium (GMP) on Dharmaj Crop Guard Limited IPO?
As of December 4th, 2022, the grey market premium for the shares of Dharmaj Crop Guard Limited was Rs. 56 as per market observers.
Should you apply for Dharmaj Crop Guard Limited IPO?
The company is a strong brand with a strong customer base within the country as well as in international markets. Also, the company caters to B2B and B2C categories making diverse streams of revenues which is always beneficial for a company. The past financial performance shows an increase not only in revenues but also in net profits which further strengthens its position in the sector. The company is therefore a good addition to the portfolio in the mid-term to long-term investment segment.
Dharmaj Crop Guard IPO issue was subscribed 35.49 times while the retail portion of the issue was subscribed 21.53 times.
How to apply for Dharmaj Crop Guard Limited IPO?
Investors can invest in this IPO through the Fisdom app.
FAQs
Dharmaj Crop Guard Limited is engaged in the business of manufacturing, distributing, and marketing diverse products in the agrochemical sector.
Yes. The company is backed by strong financials and demand for its products at the national and international levels. Therefore, the company is a good addition for investors with mid-term to long-term investment horizons.
Dharmaj Crop Guard Limited IPO is a Book Built IPO.
The key promoters of Dharmaj Crop Guard Limited are Rameshbhai Ravajibhai Talavia, Jamankumar Hansarajbhai Talavia, Jagdishbhai Ravjibhai Savaliya, and Vishal Domadia.
The company has reserved about 55000 shares for its employees in the IPO.
