Dharmaj Crop Guard IPO opens today: 10 things to know before you buy

The ninth public issue to open for subscription in November will be launched by Dharmaj Crop Guard.

There are a lot of things to know before you subscribe.

The IPO dates are listed in chronological order.

The public issue will close on November 30th.

There's a price band.

The offer price has been set.

The size of the IPO.

The company wants to raise Rs 251.15 cr through the offer. The issue consists of a fresh issue of shares and a sale of shares by the promoter group.

The company has said that the company's promoter will sell 7.09 lakh shares.

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Employees of the company will be given a discount of Rs 10 a share on the final offer price if they reserve 55, 000 shares.

The anchor book raised Rs 75 crores.

The objectives of the IPO are listed.

The fresh issue proceeds will be used to set up a manufacturing facility in Gujarat and to meet working capital requirements.

The fresh issue proceeds will be used to pay the company's debts.

The company's borrowings increased to Rs 51.56 cr as of July 2022, up from Rs 36.9 cr as of March.

There's a lot of size.

A minimum of 60 shares can be bid for by investors. The maximum amount of shares that retail investors can apply for is 1,99,080.

Half of the offer is for qualified institutional buyers, 15 percent for non-institutional investors and 35 percent for retail investors

There is a company's profile.

The business of manufacturing, distributing, and marketing a range of pesticides to both B2C and B2B customers is done by the company.

In Latin America, East Africa, the Middle East and Far East Asia, the company exports.

The Central Insecticide Board and Registration Committee (CIB&rc) has 464 registrations for the sale and export of agrochemicals, of which 269 are for sale in India as well as abroad.

The company has applied for registration of many different types of chemicals. There are 157 trademark registration.

There is a manufacturing facility in Gujarat with an installed capacity of over twenty thousand metric ton.

4,362 dealers sell the company's branded products. More than 150 institutional products were sold to more than 600 customers. Some of its key customers are Atul, Heranba industries, Innovative agritech, Meghmani industries, and Oasis.

There are financials.

Dharmaj Crop's profit increased by 37 percent in the current fiscal.

Increased sales of branded products, institutional sales and the addition of more dealers and customers helped the company to grow its operating revenue by 30 percent.

The company's earnings before interest, tax, depreciation and amortisation increased by 74 percent in FY21 compared to the previous year.

In FY22, the margin has grown at a faster rate than in the previous two years.

For the four months period ended in July FY23, the profit was 18.4 crores and the revenue was 220.9 crores.

The promoter

The managing director of the company has over 28 years of experience in the industry, while the whole time director has been in the industry for 22 years.

The chief financial officer has over 12 years of experience, while the whole-time director has more than 21 years of experience.

After the IPO, the company's owners will have a reduced stake in the company.

The risks and concerns are listed below.

There are some risks and concerns highlighted by the three companies.

There are a number of factors that can affect the price and availability of raw materials. DCGL's ability to operate its production facilities may be affected by supply and price fluctuations.

Revenue and profit margins will be impacted by a change in product mix.

The revenue stream from international clients might be affected by the fluctuations in the foreign exchange rate.

The company's profitability may be hampered by its inability to get required approvals for its products.

The success of the company's relationships is dependent on it. The loss of one or more customers could affect the business.

Increased use of alternative pest management and crop protection measures, such as genetically modified crops, may reduce demand for their products and negatively affect the business.

The inability to operate and grow business in one region may have an adverse effect on its business.

The business could be affected by a change in government policies.

If the company is unable to compete effectively, it could result in a loss of customers.

There is a listing date.

The IPO share allocation will take place by December 5. The refunds will be deposited into the bank accounts of unsuccessful investors by December 6.

On December 8th, Dharmaj Crop will be on the market.

The lead managers are Elara Capital and Monarch Networth Capital.