Dharmaj Crop Guard IPO

Last Updated: 01 December 2022 12:20 AM by 5Paisa

Dharmaj Crop Guard Ltd., an agrochemical company based out of Ahmedabad’s IPO opens on Nov 28, 2022, and closes on Nov 30, 2022. The issue worth ~Rs. 251 crores consist of fresh issue of equity shares worth up to Rs 216 crores with a face value of Rs 10 each and an offer-for-sale (OFS) of up to 14.83 lakh equity shares by existing shareholders. The price band is fixed between Rs. 261 and Rs. 237 per share while the lot size is set for 60 shares per lot. The listing date is set for 8th December and the shares will be allotted on 5th December.

Monarch Networth Capital and Elara Capital (India) are the book-running lead managers to the issue.

Objective of Dharmaj Crop Guard

The objective of the issue lies toward: 
1.    Rs 105 crore will be utilised for funding capital expenditure towards setting up of a manufacturing facility at Saykha Bharuch, Gujarat
2.    Rs 45 crore for funding incremental working capital requirements
3.    Rs 10 crore for the repayment or prepayment of borrowings 
4.    general corporate purposes
 

Dharmaj Crop Guard IPO Video

Dharmaj Crop is engaged in the business of manufacturing, distributing, and marketing of a wide range of agro chemical formulations such as insecticides, fungicides, herbicides, plant growth regulator, micro fertilizers and antibiotic to the B2C and B2B customers. Through its distribution network, the company also makes sale through engaging in the marketing and distribution of agrochemical products under brands in-licensed by it, owned by it and through generic brands, to Indian farmers. It also offers crop protection solutions to the farmer to assist them to maximize productivity and profitability.

The company has 392 registrations for agrochemical formulations from the CIB&RC, out of which 201 agrochemical formulations are for sale in India as well as for export, 191 agrochemical formulations are exclusively for exports, application for further 6 agrochemicals formulations is pending at various stages and has over 150 trademark registrations including its own branded products.
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 exports its products to more than 20 countries in Latin America, East African Countries, Middle East and Far East Asia. The branded products are sold in 12 states through network comprising over 3,700 dealers having access to 8 stock depots in India. 

The company provides education to farmers in regards to the benefits of using the company’s products by conducting farmer training programs such as field demonstrations, field shows, meetings with group of farmers, jeep campaigns and participating in village level programmes to establish direct relationship with farmer communities all over India.

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