Dharmaj Crop Guard Limited management has fixed IPO price band at ₹216 to ₹237 per Equity Share for its maiden public offer. The initial public offering of the Company will open on Monday, November 28, 2022, for subscription and closes on Wednesday, November 30, 2022. Investors can bid for a minimum of 60 Equity Shares and in multiples of 60 Equity Shares thereafter. The issue with a face value of Rs 10 per equity share consists of a fresh issue of equity shares worth up to Rs 216 crore and an offer-for-sale of up to 1,483,000 equity shares by existing shareholders. The offer also includes a reservation for subscription by eligible employees.
- IPO Opens on: Monday, November 28, 2022
- IPO Closes on: Wednesday, November 30, 2022
- Price Band: Rs 216 to Rs 237 per Equity Share
- Face Value: Rs 10 each
- Bidding: Minimum of 60 Equity Shares and in multiples
The Company
Incorporated in the year 2015, Dharmaj Crop Guard Limited is an agrochemical company engaged in the business of manufacturing, distributing, and marketing of a wide range of agro chemicals such as insecticides, fungicides, herbicides, plant growth regulator, micro fertilizers and antibiotic to the B2C and B2B customers.
The company is also engaged in the marketing and distribution of agrochemical products under brands in-licensed, owned and through generic brands, to Indian farmers through its distribution network. Besides, it also provides crop protection solutions to the farmer to assist them to maximize their productivity and profitability.
Led by its Chairman and Managing Director, Rameshbhai Ravajibhai Talavia who has over 28 years of experience in the agrochemical industry. The company also exports its products to more than 25 countries across Latin America, East African Countries, Middle East and Far East Asia.
As of September 30, 2022, the Company had more than 154 institutional products that were sold to more than 600 customers. 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.
It has obtained 464 registrations for agrochemicals from the Central Insecticide Board and Registration Committee (CIB&RC), out of which 269 agrochemical formulations are for sale in India as well as for exports and 195 agrochemical formulations are exclusively for exports. Additionally, it has also applied for registrations of 18 agrochemical formulations and 17 agrochemical technical with the CIB&RC, pending at various stages, according to the company’s RHP.
DCGLs revenue from operations grew 30.36% to Rs. 394.21 crore for the fiscal 2022 against Rs. 302.41 crore for the fiscal 2021, primarily due to increase in sales of its branded products, institutional sales and addition of more dealers and customers, while its net profits grew 36.88% from Rs. 20.96 crore in FY21 to Rs. 28.69 crore in FY22.
In case of any revision in the Price Band, the Bid/Offer Period will be extended by at least three additional Working Days after such revision in the Price Band, subject to the Bid/Offer Period not exceeding 10 Working Days. In cases of force majeure, banking strike or similar circumstances, our Company and Selling Shareholders may, for reasons to be recorded in writing, extend the Bid /Offer Period for a minimum of three Working Days, subject to the Bid/Offer Period not exceeding 10.
Risk Factors Associated Company
- The company is dependent on a limited number of customers for a significant portion of revenues. In Fiscals 2020, 2021 and 2022, and in the four months ended July 31, 2022, top 10 customers contributed ₹399.98 million, ₹526.79 million, ₹757.65 million and ₹480.39 million, respectively of total revenues from operations and represented 20.18%, 17.42%, 19.22% and 21.74%, respectively, of total revenues from operations in such periods.
- The business is subject to climatic conditions and is cyclical in nature. Seasonal variations and unfavourable local and global weather patterns may have an adverse effect on business, results of operations and financial condition.
- It derives almost all of revenues from the sale of Formulations in the agro-chemicals industry and any reduction in the demand for such products or the agro-chemicals industry could have an adverse effect on business, results of operations and financial condition.
- The company is subject to strict technical specifications, quality requirements, regular inspections and audits by customers and failure to comply with the quality standards and technical specifications prescribed by such customers may lead to loss of business from such customers and could negatively impact reputation, which would have an adverse impact on business prospects and results of operations.
