Dharmaj Crop Guard Limited has come up with an initial public offer (IPO). It will open on November 28-30, 2022 at Rs.216-237 a share. The IPO issue size is around Rs.251.15 crores. The minimum bid will be for 60 shares and in its multiples thereafter.
Overview
Dharmaj Crop Guard Limited was incorporated in 2015. It is an agrochemical company engaged in the business of manufacturing, distributing, and marketing of a wide range of agrochemical formulations to B2C and B2B customers. It is also engaged in the marketing and distribution of agrochemical products under brands in-licensed & owned by it and through generic brands, to Indian farmers through its distribution network. The company provides crop protection solutions to farmers to assist them to maximize productivity and profitability. Also, the company exports its products to more than 25 countries in Latin America, East African Countries, the Middle East, and Far East Asia.
Additionally, it manufactures and sells general insect and pest control chemicals for Public Health and Animal Health protection. With an aim to offer a wide product portfolio across the agri-value chain, the company continues to expand its product portfolio by introducing new products. It has obtained 464 registrations for agrochemical formulations from the CIB&RC, out of which 269 agrochemical formulations are for sale in India as well as for export and 195 agrochemical formulations are exclusively for exports.
Dharmaj Crop has 157 trademark registrations including its branded products. As of September 30, 2022, the company had over 118 branded formulations that are sold to farmers. It sells bulk products to our institutional customers domestically and in the international markets. Further, the company had more than 154 institutional products that it sold to more than 600 customers based in India and in the international markets.
Website – https://www.dharmajcrop.com/
Promoters
| Rameshbhai Talavia – 36.49% | Jamankumar Talavia – 33.42% |
| Vishal Domadia – 5.23% | Jagdishbhai Savaliya – 2.06% |
Promoter Holding
| Pre-Issue Shareholding – 100% | Post-Issue Shareholding – 73.03% |
Strength & Weakness
| Strengths | Weaknesses |
| Diversified portfolio of products | Subject to strict quality requirements |
| Consistent focus on quality and innovation | Subject to regular inspection |
| Strong R&D capabilities | No long-term agreements |
| Established distribution network | Business is subject to climatic conditions |
| Strong branded products | Business is cyclical in nature |
| Stable relationship with institutional customers | Depend on the success of relationships with customers |
| Experienced Promoters and management team | Revenue is generated from certain key customer |
| Track record of strong operational and financial performance | Outstanding litigation proceedings against Company |
Products
| Fungicides | Herbicides | Insecticides, |
| Micro Fertilizers | Antibiotic | Plant Growth Regulators |
Customers
| Atul Limited | Heranba Industries |
| Meghmani Industries | Bharat Rasayan Limited |
| Oasis Limited | Innovative Agritech |
| United Insecticides | Sadik Agrochemicals |
Competitors
| Rallis India | India Pesticides | Punjab Chemical |
| Bharat Rasayan | Astec Lifescience | Heramba Industries |
Company Financials
| Year | Revenue (in Crore) | Profit (in Crore) |
| 31-Mar-2020 | 199.16 | 10.76 |
| 31-Mar-2021 | 303.56 | 20.96 |
| 31-Mar-2022 | 396.29 | 28.69 |
| 30-Jun-2022 | 221.17 | 18.36 |
Object of Issue
1) Offer for Sale is to allow the selling shareholders to sell Equity Shares
2) Funding capital expenditure towards setting up of a manufacturing facility at Saykha, Bharuch, Gujarat
3) Funding incremental working capital requirements of the Company
4) Repayment and/or pre-payment, in full and/or part, of certain borrowings of our Company
5) General corporate purposes.
Dharmaj Crop Guard IPO Lot Size
| Application | Lot | Shares | Amount |
| Retail (Min) | 1 | 60 | Rs.14,220 |
| Retail (Max) | 14 | 840 | Rs.1,99,080 |
| S-HNI (Min) | 15 | 900 | Rs.2,13,300 |
| B-HNI (Max) | 71 | 4,260 | Rs.10,09,620 |
Dharmaj Crop Guard IPO Details
| IPO Opening Date | November 28, 2022 |
| IPO Closing Date | November 30, 2022 |
| Face Value | Rs.10 per Equity Share |
| IPO Price | Rs.216-237 per share |
| Market Lot | 60 shares |
| Minimum Order Quantity | 60 shares |
| Listing At | NSE, BSE |
| No. of shares offered (Fresh Issue) | 91,13,924 shares |
| No. of shares offered (OFS) | 14,83,000 shares |
| Issue Size | Up to Rs.251.15 Crore |
| QIB Shares Offered | 50% of the offer |
| Retail Shares Offered | 35% of the offer |
| NII/HNI Shares Offered | 15% of the offer |
Dharmaj Crop Guard IPO Timetable
| IPO Date | November 28-30, 2022 |
| Allotment Date | December 05, 2022 |
| Initiation of Refunds | December 06, 2022 |
| Credit of share to Demat a/c | December 07, 2022 |
| IPO Listing Date | December 08, 2022 |
Allotment Status
Link Intime – https://linkintime.co.in/
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