Dharmaj Crop Guard
Mainboard₹251 Cr issue
+12.24%
Listing gain over issue price
Issue size
₹251 Cr
1 lot at cut-off
₹14,220
Lot size
60shares
Open
28 Nov 2022
Close
30 Nov 2022
Allotment
05 Dec 2022
Listing
08 Dec 2022
Listing performance
Issue price
₹237
Listed at
₹266
Listing-day close
₹266.40
Latest price
₹239.20
Close on 23 Oct 2026
Listing gain
+12.24%
Return since issue
+0.93%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 28 Nov 2022 – 30 Nov 2022
- Listing date
- 08 Dec 2022
- Face value
- ₹10 per share
- Issue price
- ₹237 per share
- Lot size
- 60 shares
- Total issue size
- ₹251 Cr
- Market cap at offer price
- ₹801 Cr
- Promoter holding
- 100.00% → 68.64% pre-issue → post-issue
- ISIN
- INE00OQ01016
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Elara Capital (India) Pvt.Ltd.
- Registered office
- Plot No.408 to 411, Kerala GIDC Estate, Off NH-8, At: Kerala, Taluka Bavla, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 31,62,540 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 60 shares per lot, in multiples, at ₹237
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 60 | ₹14,220 |
| Retail (max) | 14 | 840 | ₹1,99,080 |
| S-HNI (min) | 15 | 900 | ₹2,13,300 |
| S-HNI (max) | 70 | 4,200 | ₹9,95,400 |
| B-HNI (min) | 71 | 4,260 | ₹10,09,620 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
31,62,540
Anchor portion
₹74.95 Cr
at ₹237 per share
Valuation and performance
Valuation at offer price
₹237 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 11.62 | — |
| P/E (×) | 20.40 | — |
| Market cap | — | ₹801 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 34.64%
- ROCE
- 32.87%
- Debt / equity
- 0.43
- PAT margin
- 7.28%
- EBITDA margin
- 11.72%
- NAV per share
- ₹33.55
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Dharmaj Crop Guard
Dharmaj Crop Guard Limited is an agrochemical company incorporated on January 19, 2015, under the Companies Act, 2013. The company is engaged in the business of manufacturing, distributing, and marketing a wide range of agrochemicals such as insecticides, fungicides, herbicides, plant growth regulators, micro fertilizers, and antibiotics to both B2C and B2B customers. Within its differentiated business model, the company provides agrochemical products and manufacturing services to multinational corporations and also engages in the marketing and distribution of agrochemical products under brands in-licensed by the company, owned by the company, and through generic brands to Indian farmers through its distribution network. The company exports its products to more than 25 countries in Latin America, East African Countries, Middle East and Far East Asia and sells agrochemical products in granules, powder, and liquid forms. Additionally, the company manufactures and sells general insect and pest control chemicals for public health protection.
Company Analysis
from RHPDharmaj Crop Guard Limited manufactures, distributes, and markets agrochemicals including insecticides, fungicides, herbicides, plant growth regulators, micro fertilizers, and antibiotics for B2B and B2C customers, and also manufactures general insect and pest control chemicals for public health protection.
Dharmaj Crop Guard Limited is an agrochemical company incorporated on January 19, 2015, under the Companies Act, 2013. The company is engaged in the business of manufacturing, distributing, and marketing a wide range of agrochemicals such as insecticides, fungicides, herbicides, plant growth regulators, micro fertilizers, and antibiotics to both B2C and B2B customers. Within its differentiated business model, the company provides agrochemical products and manufacturing services to multinational corporations and also engages in the marketing and distribution of agrochemical products under brands in-licensed by the company, owned by the company, and through generic brands to Indian farmers through its distribution network. The company exports its products to more than 25 countries in Latin America, East African Countries, Middle East and Far East Asia and sells agrochemical products in granules, powder, and liquid forms. Additionally, the company manufactures and sells general insect and pest control chemicals for public health protection.
agrochemicalsinsecticidesfungicidesherbicidesplant growth regulatorsmicro fertilizersantibioticspest control
Objects of the Issue
- Funding capital expenditure towards setting up of a manufacturing facility at Saykha Bharuch, Gujarat ₹1,049.69 million p.26
- Funding incremental working capital requirements of our Company ₹450.00 million p.26
- Repayment and/or pre-payment, in full and/or part, of certain borrowings of our Company ₹100.00 million p.26
- General corporate purposes p.26
- Funding capital expenditure towards setting up of a manufacturing facility at Saykha, Bharuch, Gujarat ₹1,049.69 million p.102
- Funding incremental working capital requirements of our Company ₹450.00 million p.102
- Repayment and/or pre-payment, in full and/or part, of certain borrowings of our Company ₹100.00 million p.102
- General corporate purposes p.102
- Funding capital expenditure towards setting up of a manufacturing facility at Saykha, Bharuch, Gujarat for production of agrochemical technicals and intermediates ₹1,049.27 million p.100
- Funding incremental working capital requirements ₹450.00 million p.111
- Repayment and/or pre-payment of certain borrowings ₹100.00 million p.113
- General corporate purposes p.116
- Funding capex for the new manufacturing facility
Issue Structure
- Total Issue
- Up to [●] Equity Shares, aggregating up to ₹ [●] million
- Fresh Issue
- Up to [●] Equity Shares, aggregating up to ₹ 2,160.00 million
- Offer for Sale
- Up to 1,483,000 Equity Shares, aggregating up to ₹ [●] million by the Selling Shareholders
- Price Band
- [●] per Equity Share (Floor Price) and maximum price of ₹[●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹ 10 each
Business Model
The company earns revenue from the manufacture and sale of agrochemical formulations and technical products. It operates a differentiated business model providing manufacturing services to multinational corporations, marketing and distribution of in-licensed brands, proprietary brands, and generic brands to Indian farmers through its distribution network, and exports to more than 25 countries internationally.
Business Segments
Manufacturing, distributing, and marketing of agrochemical formulations to Indian farmers through distribution network
Manufacturing and export of agrochemical formulations to more than 25 countries in Latin America, East African Countries, Middle East and Far East Asia
Providing agrochemical products and manufacturing services to multinational corporations
Manufacturing and selling general insect and pest control chemicals for public health protection
Manufacturing and distribution of formulated crop protection products including pesticides, insecticides, and fungicides under various brand names
Planned manufacturing of technical products and intermediates at the new Saykha facility for internal consumption in formulations and external sale in domestic and overseas markets
Insecticides enable protection of the crops from insects by either preventing their attack or destroying them. They help in controlling the pest population below a desired threshold level.
Fungicides find their application in fruits, vegetables and rice and they are vital to contract post-harvest losses in vegetables and fruits. Fungicides are used to prevent fungi attack on crops and to handle diseases on crops.
Herbicides also known as weedicides are used to destroy unwanted plants. Unavailability of cheap labour leads to major usage of herbicides in rice and wheat crops.
Plant growth regulators are substances that are applied to crops with the aim to enhance nutrition efficiency, abiotic stress tolerance and crop quality traits.
Micro fertilizers are required for crops to reap the maximum yield from crops, including sulphur, zinc, boron and ferrous.
Antibiotic is a major tool to treat the bacterial issues of plants and tree fruits. Antibiotic boost and develop immune system of plants.
Direct sales of agrochemical formulations to large institutional customers including 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., including exports to various countries.
Sales of branded agrochemical products to individual farmers through a distribution network comprising more than 4,362 dealers supported by 16 stock depots across 17 states. Products sold in various pack sizes (aluminum bottles, pouches, boxes, HDPE bottles, pet bottles, bags and drums) appropriate for different farmer segments.
Manufactures a wide range of insecticides to suit the requirement of farmers in preventing and curing different crops from being damaged by insects. Top branded products include Padgham, Lubrio, Nilaayan, Dahaad, Prudhar and Remora.
Manufactures a wide range of fungicides that protect the crop from diseases caused by pathogenic organisms. Fungicide controls fungal diseases by inhibiting fungal growth and killing the fungus. Top branded products include Gagandip, Sajaag, Lokraj, Rishmat and Kaviraj.
Manufactures herbicides that effectively eliminate weeds and reduce mechanical and manual weeding. Prevents soil erosion and wastage of resources. Top branded products include Dharozar, Aatmaj, Rodular, Dharolik, Kohha, Kawayat Super and Sadavirum.
Manufactures plant growth regulators also known as plant hormones which help in increasing crop yield and improving its quality. Top branded products include Rujuta, Greenoka, and Stabilizer.
Manufactures micro fertilizers such as sulphur, zinc, boron and ferrous to increase production of crops and make the soil more fertile. Micro fertilizers are required for crops to reap maximum yield. Branded products include Zeekasulf, Aakuko, Thandaj and Zusta.
Manufactures antibiotics as a major tool to treat bacterial issues of plants and tree fruits. Antibiotic boosts and develops immune system of plants. Branded product is Retardo.
Manufacture and sale of agrochemical products including insecticides, fungicides, herbicides, plant growth regulators, micro fertilizers and antibiotics
SWOT Analysis
Strengths
- • Diversified agrochemical product portfolio with multiple formulations and technicals(p.35)
- • Global export presence across 25+ countries in multiple regions(p.25)
- • Strong revenue growth trajectory over three years(p.46)
- • Manufacturing capability across multiple product forms(p.25)
- • Extensive distribution network of over 4,362 dealers as of September 30, 2022(p.48)
- • Well-established brands with strong recall among farmers(p.49)
- • Long-established presence in Indian market supporting brand trust(p.49)
- • Diversified product portfolio across insecticides, fungicides, herbicides with 464 CIB&RC registrations(p.157)
- • Strong R&D capabilities with NABL-accredited quality control laboratory and process research team(p.160)
- • Extensive pan-India distribution network with 4,362 dealers and 16 stock depots across 17 states(p.160)
- • Strong financial performance with revenue CAGR of 41.02% and PAT CAGR of 63.30% from FY2020-FY2022(p.161)
- • Experienced promoter and management team with 28+ years in agrochemical industry(p.161)
- • Institutional customer base of 600+ customers including multinational corporations(p.170)
- • Established export presence in 25 countries with 66+ institutional customers(p.160)
- • Strong branded portfolio with 157 trademark registrations and 118+ branded formulations(p.157)
- • Diverse product portfolio reducing customer concentration risk(p.176)
- • Integrated manufacturing facility enabling flexible, efficient production(p.172)
- • ISO certifications demonstrating quality and environmental standards(p.172)
- • Strong geographic distribution network mitigating regional dependence(p.176)
- • Dedicated R&D capability with NABL-accredited laboratory(p.175)
- • Solar power generation reducing operational costs(p.174)
- • Wide international presence across 25+ countries(p.171)
- • Comprehensive product portfolio across agrochemical categories(p.281)
- • Strong brand presence with 157 trademark registrations(p.281)
- • Significant market reach across institutional and export customers(p.281)
- • Modern manufacturing facility with quality certifications(p.282)
- • Environmental sustainability initiatives including solar power(p.282)
- • Improving profitability margins over time(p.283)
Weaknesses
- • High dependence on limited customer base for significant revenue(p.40)
- • Substantial increase in trade receivables creating working capital strain(p.40)
- • Manufacturing facility concentrated in single geographic location(p.45)
- • Lack of long-term customer contracts(p.36)
- • Significant outstanding litigation with contingent liabilities(p.44)
- • High dependence on top 3 raw material suppliers (28.55% of cost of material consumed)(p.54)
- • Reliance on external suppliers for all bulk chemical raw materials with no long-term supply contracts(p.54)
- • Significantly under-utilized manufacturing capacity (37.95% in 5 months ended Aug 31, 2022)(p.52)
- • Working capital intensive business requiring significant inventory maintenance(p.57)
- • Contingent liability for patent infringement claim of ₹20.20 million(p.54)
- • Unsecured loans from promoters of ₹81.84 million that may be recalled at any time(p.55)
- • Pending trademark applications and lack of registered intellectual property protection(p.59)
- • High dependence on institutional business which represents 68-73% of total revenue(p.160)
- • Single manufacturing facility with 25,500 MT capacity concentrated at one location(p.158)
- • Declining gross profit margin from 21.62% in FY2020 to 18.55% in 4M FY2023(p.159)
- • New company (incorporated 2015) with limited track record compared to established peers(p.161)
- • Heavy reliance on institutional/bulk sales for revenue(p.177)
- • High employee attrition rates(p.179)
- • No long-term raw material supply contracts increasing procurement uncertainty(p.175)
- • Significant excess manufacturing capacity utilization(p.173)
- • High dependence on raw material costs affecting profitability(p.283)
- • Concentration of export revenue in limited markets(p.284)
- • Working capital intensity and inventory management challenges(p.285)
- • Significant debt obligations requiring covenant compliance(p.279)
- • High cost of raw materials as large percentage of total costs(p.296)
- • Significant material cost volatility—costs comprise 80%+ of revenues(p.301)
- • Inventory management challenges affecting working capital(p.302)
- • Significant increase in finance costs due to borrowing expansion(p.302)
Opportunities
- • Planned expansion into technical products manufacturing at new facility(p.45)
- • Projected strong growth in Indian agrochemicals industry(p.25)
- • India's position as 4th largest producer and net exporter in global agrochemicals market(p.25)
- • Global pesticides market expansion(p.25)
- • Strategy to expand working capital and strengthen financial position(p.26)
- • Capacity expansion through new manufacturing facility at Saykha, Bharuch for backward integration(p.103)
- • Increased profit margins through vertical integration (technical product manufacturing)(p.103)
- • Expansion of dealer network to increase product penetration(p.48)
- • Growth through brand awareness expansion and marketing initiatives(p.52)
- • Expansion into technical/intermediate manufacturing through new Saykha facility for backward integration(p.161)
- • USD 5 billion opportunity from off-patent pesticides expected to go off-patent by FY27(p.162)
- • Growing public health and animal health segment with global pyrethroids market growth of 5% CAGR through 2026(p.162)
- • Indian agrochemical industry expected to grow at 7.5%-8.5% CAGR through FY2026-27(p.162)
- • Low per hectare pesticide consumption in India at 0.6 kg/ha vs. global average of 2.6 kg/ha(p.140)
- • India emerging as 4th largest producer and 13th largest exporter globally with pesticide exports growing at 12.1% CAGR(p.138)
- • Planned expansion into technical manufacturing(p.172)
- • Continuing expansion of product registration portfolio(p.171)
- • Growth through R&D-driven product efficacy improvements(p.176)
- • Dealer network expansion opportunity(p.177)
- • Growing global pesticides market with strong CAGR potential(p.284)
- • Backward integration through Saykha facility expansion(p.282)
- • Rising agrochemical consumption in India due to population growth(p.285)
- • Expansion of branded product portfolio targeting retail consumers(p.284)
- • Growth in product registrations with 18 pending formulations and 17 pending technicals(p.281)
- • Continued market growth through dealer and customer expansion(p.301)
- • Geographic expansion through pending licenses and applications(p.317)
- • Expansion of product portfolio with pending insecticide registrations(p.317)
Threats
- • Seasonal demand volatility tied to monsoon cycle(p.38)
- • Weather and climate dependency affecting crop plantings and pest infestations(p.37)
- • Government ban on multiple pesticides reducing addressable market(p.42)
- • Rise of alternative pest management methods reducing chemical pesticide demand(p.40)
- • Intense competition from domestic and multinational competitors(p.44)
- • COVID-19 pandemic creating operational disruptions(p.34)
- • Risk of leakage of confidential technical information to competitors(p.48)
- • Inability to expand distribution network if competitors offer more favorable terms to dealers(p.48)
- • Competitors may have exclusive arrangements with dealers limiting distribution reach(p.48)
- • Risk of reduced farmer purchasing power from changes in government agricultural policies and subsidies(p.48)
- • Risk of brand dilution from negative publicity and social media impact(p.49)
- • Raw material price volatility from commodity market fluctuations and FX movements(p.54)
- • Shortage or non-availability of essential utilities (electricity and water) affecting manufacturing(p.50)
- • Activist resistance to crop protection chemicals affecting demand(p.50)
- • Risk of rapid technological obsolescence requiring substantial capital investment(p.50)
- • Exposure to foreign exchange fluctuation risks from export revenue(p.52)
- • Slowdown in Indian economy and commodity price volatility affecting agriculture sector(p.62)
- • Risk of inflation reducing ability to pass on cost increases to customers(p.64)
- • Regulatory risk from proposed Pesticide Management Bill 2020 introducing stricter penalties and price controls(p.152)
- • Risk of pesticide bans: government reviewed 66 contentious pesticides and banned 18 in 2018, reviewing 27 more(p.154)
- • Intense competition from established industry peers and consolidation risk(p.162)
- • Risk from spurious and counterfeit products undermining industry credibility(p.148)
- • High R&D costs and long development cycles (9 years average) constraining new molecule development(p.148)
- • Risk from genetically modified seeds reducing pesticide demand(p.148)
- • Organic farming growth reducing pesticide demand due to consumer health consciousness(p.148)
- • Seasonal demand fluctuations and weather dependency affecting sales(p.167)
- • Inability to procure raw materials at reasonable costs or timely(p.175)
- • Intense competition from multiple domestic and international players(p.179)
- • Insurance coverage may be insufficient for material hazards(p.178)
- • Regulatory compliance requirements and potential bans on pesticides(p.181)
- • Dependence on environmental and safety regulatory compliance(p.178)
- • Exposure to monsoon and adverse weather conditions(p.285)
- • Foreign currency exchange rate volatility(p.284)
- • Intense competition from larger domestic and multinational companies(p.285)
- • Regulatory risks around CIB&RC registrations and renewals(p.285)
- • Dependence on limited supply of specific raw materials(p.284)
- • Risk of equipment breakdown affecting capacity utilization(p.285)
- • Patent infringement litigation with material financial exposure(p.312)
- • Significant product liability claim from supplier misconduct allegation(p.312)
- • Regulatory non-compliance case under Insecticides Act(p.311)
- • Regulatory show-cause notice for factory operations violations(p.313)
- • Seasonal and weather-dependent business cyclicality(p.310)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Rameshbhai Ravajibhai Talavia | Promoter | 36.49% | — |
| Jamankumar Hansarajbhai Talavia | Promoter | 33.42% | — |
| Vishal Domadia | Promoter | 5.23% | — |
| Jagdishbhai Ravjibhai Savaliya | Promoter | 2.06% | — |
| Manjulaben Rameshbhai Talavia | Promoter Group | 10.81% | — |
| Muktaben Jamankumar Talavia | Promoter Group | 10.33% | — |
| Domadia Artiben | Promoter Group | 0.61% | — |
| Ilaben Jagdishbhai Savaliya | Promoter Group | 0.12% | — |
| Rameshbhai Ravajibhai Talavia | Promoter | 36.49% | — |
| Jamankumar Hansarajbhai Talavia | Promoter | 33.42% | — |
| Vishal Domadia | Promoter | 5.23% | — |
| Jagdishbhai Ravjibhai Savaliya | Promoter | 2.06% | — |
| Manjulaben Rameshbhai Talavia | Promoter Group | 10.81% | — |
| Muktaben Jamankumar Talavia | Promoter Group | 10.33% | — |
| Prafullaben Shantilal Savaliya jointly held with Shantilal Ravjibhai Savaliya | Promoter Group | 0.93% | — |
| Domadia Artiben | Promoter Group | 0.61% | — |
| Ilaben Jagdishbhai Savaliya | Promoter Group | 0.12% | — |
| Rameshbhai Ravajibhai Talavia | Promoter | 9,008,087 shares | — |
| Jamankumar Hansarajbhai Talavia | Promoter | 8,250,255 shares | — |
| Jagdishbhai Ravjibhai Savaliya | Promoter | 507,600 shares | — |
| Vishal Domadia | Promoter | 1,290,000 shares | — |
| Rameshbhai Ravajibhai Talavia | Promoter | 36.49% | — |
| Jamankumar Hansarajbhai Talavia | Promoter | 33.42% | — |
| Jagdishbhai Ravjibhai Savaliya | Promoter | 2.06% | — |
| Vishal Domadia | Promoter | 5.23% | — |
| Rameshbhai Ravajibhai Talavia | Promoter | — | — |
| Jamankumar Hansarajbhai Talavia | Promoter | — | — |
| Manjulaben Rameshbhai Talavia | Selling Shareholder | — | — |
| Muktaben Jamankumar Talavia | Selling Shareholder | — | — |
Leadership
Rameshbhai Ravajibhai Talavia · Chairman and Managing Director
Vishal Domadia · Chief Financial Officer
Malvika Bhadreshbhai Kapasi · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Dharmaj Crop Guard IPO FAQs
What is the lot size of Dharmaj Crop Guard IPO?
The minimum lot size of Dharmaj Crop Guard IPO is 60 shares. One lot costs ₹14,220 at the cut-off price.
When does Dharmaj Crop Guard IPO open and close?
Dharmaj Crop Guard IPO opened for subscription on 28 Nov 2022 and closed on 30 Nov 2022.
What is the listing date of Dharmaj Crop Guard IPO?
Dharmaj Crop Guard IPO listed on 08 Dec 2022.