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 has garnered Rs 74.95 crore from anchor investors ahead of its initial public offering that opens for public subscription on Monday, November 28, 2022. The company informed the bourses that it allocated 31,62,540 shares at Rs. 237 per share on Friday, November 25, 2022, to anchor investors.
Institutional Investors who participated in the anchor were two foreign portfolios' namely Elara India Opportunities Fund & Rajasthan Global Securities, and one NBFC namely Resonance Opportunities Fund.
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.
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.
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.
The offer of sale comprises up to 709,500 equity shares by Manjulaben Rameshbhai Talavia, up to 656,000 equity shares by Muktaben Jamankumar Talavia, up to 87,500 equity shares by Domadia Artiben, up to 30,000 equity shares by Ilaben Jagadishbhai Savaliya ("The Promoter Selling Shareholders").
The Company is proposing to open its initial public offering of Equity Shares (the "Offer") on Monday, November 28, 2022, and closes on Wednesday, November 30, 2022. The price band for the Offer has been determined at Rs 216 - Rs 237 per equity share.
The IPO will fetch Rs 251.15 crore at the upper end of the price band.
Investors can bid for a minimum of 60 equity shares and in multiples of 60 equity shares thereafter.
The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended, read with Regulation 31 of the SEBI ICDR Regulations.
The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.