Agrochemicals company Dharmaj Crop Guard has set the price band for its Rs 251 crore initial public offering at 216-237 rupees per share.
The company, which is an agrochemicals company, manufactures, distributes, and markets a range of agro-chemical formulations such as insecticides, fungicides, herbicides, plant growth regulator, micro fertilisers and antibiotic to customers in business-to-business and business-to-customer segments.
The public offer will open for subscription on Nov 28 and close on Nov 30.
Bids can be placed for a minimum of 60 equity shares and then in multiples of 60 shares.
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 (OFS) of up to 1,483,000 equity shares by existing shareholders. The offer also includes a reservation for subscription by eligible employees.
Incorporated in the year 2015, Dharmaj Crop Guard 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.
The company is setting up a manufacturing facility at Saykha Bharuch for backward integration, said Vishal Damodia, Chief Financial Officer of Dharmaj Crop Guard Limited at the IPO press meet in Mumbai on Wednesday.
The total debt on the company till July 2022 was Rs 51 crore and post the IPO the debt will come down by Rs 10 crore, he said.
Revenue of the company grew at a CAGR of 41.02%, while EBITA grew at 58%. Further, PAT of the company grew at 63%, Damodia informed.
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 technicals 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.
Elara Capital (India) Private Limited and Monarch Networth Capital Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the issue. (With inputs from Agencies)
