Dharmaj Crop Guard Limited IPO

THIS IPO IS LISTING AT NSE AND BSE

Dharmaj Crop Guard Ltd IPO is an IPO of an agrochemical firm based in Ahmedabad and has filed preliminary documents with SEBI to raise Rs.300 crores. The offering includes a fresh issue of equity shares. The Equity shares are with a face value of Rs.10 apiece worth up to Rs.216 crores and an OFS also known as an offer for the sale of up to 1483000 equity shares by existing shareholders.

The issue’s book-running lead managers are Monarch Networth Capital and Elara Capital (India). If you are an existing user of Angelone, Apply now and avoid the last-minute hustle.

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Dharmaj Crop Guard IPO Important Dates

IPO Open Date	Nov 28, 2022
IPO Close Date	Nov 30, 2022
Allotment Date	Dec 05, 2022
Initiation Of Refunds	Dec 06, 2022
Credit Of Shares To Demat Account	Dec 06, 2022
IPO Listing Date	Dec 08, 2022
UPI Mandate Expiry Date	Nov 30, 2022

Opening Date	Closing Date
Nov 28, 2022	Nov 30, 2022
Price Band	Issue Size
₹216 – ₹237 per equity share	₹248 – ₹251 Cr
Face Value	Market Lot
₹10 per equity share	60 Shares

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About Dharmaj Crop Guard Limited

Dharmaj Crop Guard Limited is a manufacturer, distributor, and marketer of a comprehensive variety of agrochemical formulations for Business to customer and Business to business consumers, including many products at micro fertilizers and other antibiotics.

Dharmaj Crop Guard Limited provides crop protection solutions to farmers to help them increase day-to-day production and make a good profit.

Dharmaj Crop Guard Limited has 392 CIB&RC registrations for agrochemical formulations, of which 201 are for sale in India. One hundred ninety-one are exclusively for export, and applications for another six agrochemical formulations are pending at various stages. It also has over 150 trademark registrations, including its own branded products. 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. are some of the Company’s essential clients.

More than 20 nations in Latin America, East Africa, the Middle East, and Far East Asia get the Company’s products. Branded items are distributed in 12 Indian states through a network of over 3,700 dealers with access to eight stock depots.

Dharmaj Crop Guard IPO Objectives

– The Company aims to fund capital expenditure for setting up a manufacturing facility at Saykha, Bharuch, Gujarat.

– Funding incremental working capital requirements of the Company.

– Repayment and pre-payment, in full and part, of certain borrowings of the Company.

– General Corporate Purpose

Should you invest in the Dharmaj Crop Guard Limited IPO?

During the five years 2016-2020, the global pesticides market has grown at a Compounded Annual Growth Rate (CAGR) of 4.3% from USD 57 billion in 2016 to USD 67 billion in 2020.
It is expected that the pesticides market in the regions like India and China will grow at a faster CAGR of 3.4%-3.7% by 2024 compared to the other areas.

Financial Highlights

(₹ in Crore, except percentage and number of days)

Particulars	2022	2021	2020	2019
Revenue operations	227.262	302.410	198.222	139.356
Y-o-y growth	–	52.56%	42.24%	119.74%
Total income	228.154	303.565	199.165	139.952
Y-o-y growth	–	52.42%	42.31%	120.05%
EBITDA	29.177	32.038	18.577	11.013
EBITDA margin	12.84%	10.59%	9.37%	7.90%
PAT	18.667	20.960	10.759	5.022
PAT margin	8.21%	6.93%	5.43%	3.60%
ROCE	27.41%	39.97%	39.08%	31.36%
ROE	25.07%	37.33%	30.55%	48.03%
Working capital cycle	47 days	34 days	40 days	52 days

How to apply for Dharmaj Crop Guard IPO

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Dharmaj Crop Guard IPO Noteworthy Highlights:

Dharmaj Crop Guard manufactures a wide range of insecticides to suit the requirement of farmers in preventing and curating different crops from being damaged by insects. They develop an effective, safe, and sustainable range of insecticides to help farmers and prevent crops from being damaged.
The company exports its products to more than 20 countries in Latin America, East African Countries, the Middle East, and Far East Asia. The branded products are sold in 12 states through a network comprising over 3,700 dealers having access to 8 stock depots in India.

The Brand’s Pros & Cons:

Pros	Cons
A diverse product portfolio with a constant focus on quality and innovation.	Failure to adhere to customer-mandated quality standards, technical requirements, frequent inspections, and audits may result in the loss of business.
Strong research and development skills with an emphasis on innovation and long-term viability.	The bulk of the company’s consumers does not have long-term contracts.
A stable relationship with institutional clients and an established distribution network with strong branded products	Failure to obtain appropriate registrations or maintain statutory and regulatory permissions and approvals would have a negative impact on the company’s and manufacturing facility’s operations.

Competitive Analysis: Market Peers

Name of the Company	Total Revenue	Basic EPS	Nav Rs. per share	PE	RoNW%
Dharmaj Corp Guard Limited	302.4	8.5	22.8	NA	37.3%
Rallis India	2429.4	11.8	81.8	23.4	14.4%
India Pesticides	649.0	12.1	33.8	26.6	34.5%
Punjab Chemical & Corp Protection	678.2	40.0	117.9	37.6	34.0%
Bharat Rasayan	1092.0	385.7	1750.3	32.4	22.5%
Astec Lifesciences	554.9	33.2	157.9	45.7	23.4%
Heranba Industries	1218.6	39.4	132.0	16.6	29.2%