Home IPO Dharmaj Crop Guard Initial Public Offering – Should We Have to Buy

Dharmaj Crop Guard Initial Public Offering – Should We Have to Buy

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Dharmaj Crop Guard

Dharmaj Crop Guard Initial Public Offering:

 Dharmaj Crop Guard Limited is preparing for its IPO. On November 28, 2022, the IPO’s subscription period will begin, and it will end on November 30, 2022. The company wants to raise Rs 251.15 crore, of which Rs 216 crore will come via a new issuance and the remaining Rs 35.15 crore from an offer for sale.

We will examine the Dharmaj Crop Guard IPO Review 2022 in this article and discuss its advantages and disadvantages. Find out by reading on!

Regarding The Company

Agrochemical company Dharmaj Crop Guard is in the business of producing, distributing, and marketing a variety of chemicals. Its offerings to B2C and B2B clients include insecticides, fungicides, herbicides, plant growth regulators, micro fertilisers, and antibiotics.

As of November 30, 2021, their products are sold in 12 states via a network of over 3,700 dealers who have access to 8 stock warehouses across India.

The business has a significant global footprint because it exports its goods to more than 20 nations, including those in Latin America, East Africa, the Middle East, and Far East Asia. 

Atul Limited, Heranba Industries Limited, Innovative, Meghmani Industries Limited, Bharat Rasayan Limited, and Oasis Limited are a few of the company’s most important clients.

Additionally, the business produces and sells general insect and pest control chemicals for the protection of public health, including crop protection products to farmers.
 

The company’s line of products

  • Insecticides: Among others, their top-selling brands include Padgham, Lubrio, Nilaayan, Dahaad, Prudhar, and Remora.
  • Fungicides: Some of their best-known brands are Gagandip, Sajaag, Lokraj, Rishmat, and Kaviraj.
  • Herbicides: A few of their more well-known brands are Dharozar, Aatmaj, Rodular, Dharolik, Kohha, Kawayat Super, and Sadavirum.
  • Plant growth regulator: Among their best-known brands are Stabilizer, Greenoka, and Rujuta.
  • Micro Fertilizers: Some of their best-selling brands include Zeekasulf, Aakuko, Thandaj, and Zusta.
  • Antibiotic: They market medications under the Retardo brand.

Dharmaj Crop Financial Highlight

 

Dharmaj Crop Financial Highlight


 Industry Snapshot

Insecticides, fungicides, and herbicides make up the majority of the pesticide market in India. The majority of these are insecticides, which make up about 55% of the market, followed by herbicides and fungicides, which make up about 23% and 18% of the market, respectively.

India is the fourth-largest producer of agrochemicals in the world, behind the USA, Japan, and China. Additionally, India has risen to become the world’s 13th largest supplier of insecticides.

The whole Indian market for pesticides and other agrochemicals increased at a CAGR of 4.5% from Rs. 368 billion in 2013–14 to Rs. 439 billion in 2017–18, according to the Company Commissioned CareEdge Report.

The industry is projected to expand at a CAGR of 5.2%–5.7% by 2023–2024 as a result of anticipated growth in the global market and a potential rise in domestic pesticide usage in India.

Strengths

  • The company’s product line is robust and diverse.
  • Over the years, the business has been successful in building solid distribution networks and enduring connections with its clients.
  • The business has a robust research and development (R&D) department with an emphasis on sustainability and innovation.
  • A management group and seasoned Promoters are in charge of the business.
  • The business has strong and successful digital, promotional, and branding capabilities.

Weaknesses

  • Strict technical requirements, quality standards, routine inspections, and audits by the government and its clients are all imposed upon the business. Any departure will have a detrimental effect on their reputation.
  • The nature of the company is cyclical because the weather and seasonal changes affect how its products are sold.
  • Growing threats to their product include modern approaches to pest control and crop protection, including organic farming, biotechnology, pest-resistant seeds, and genetically engineered crops.
  • The company’s products may be harmful to the environment and the health of its employees. As a result, it is governed by strict laws, and breaking them could result in expensive fines.
  • Several legal actions are still pending against the company, its promoters, and its directors.


Review of the Dharmaj Crop Guard IPO – GMP

On November 24th, 2022, the shares of Dharmaj Crop Guard traded at a premium of 18.99%. Shares dropped to Rs 282. In comparison to the cap price of Rs 237, this offers it a per-share premium of Rs 45.

Book Running Lead Managers: Elara Capital (India) Private Limited and Monarch Networth Capital Limited. 

Registrar To The Offer: Link Intime India Private Limited.

Particulars Details
IPO Size ₹251.15 Crore
Fresh Issue ₹216 Crore
Offer for Sale (OFS) ₹35.15 Crore
Opening date November 28, 2022
Closing date November 30, 2022
Face Value ₹10 per share
Price Band ₹216 to ₹237 per share
Lot Size 60 Shares
Minimum Lot Size 1(60 Shares)
Maximum Lot Size 14 (840 Shares)
Listing Date December 8, 2022

The Goal of the Issue

It is suggested that the Fresh Issue’s net proceeds be used for:

providing capital funding for the construction of a manufacturing facility in Gujarat’s Saykha Bharuch.
financing increased working capital needs.
repayment and/or prepayment of certain borrowings, in full or in part.
broader corporate objectives

In conclusion

We examined the specifics of the Dharmaj Crop Guard IPO Review 2022 in this article. On the IPO and its potential gains, analysts are still split. Investors should take advantage of this chance to research the business and assess its advantages and disadvantages. This concludes this post.

Do you intend to apply for the IPO? Tell us in the comments section below.

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