DHARNI Capital Services SME
SME₹10.74 Cr issue
+5.00%
Listing gain over issue price
Issue size
₹10.74 Cr
1 lot at cut-off
₹1,20,000
Lot size
6,000shares
Open
18 Jan 2023
Close
20 Jan 2023
Allotment
25 Jan 2023
Listing
31 Jan 2023
Listing performance
Issue price
₹20
Listed at
₹21
Listing-day close
₹20.25
Latest price
—
Listing gain
+5.00%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 18 Jan 2023 – 20 Jan 2023
- Listing date
- 31 Jan 2023
- Face value
- ₹1 per share
- Issue price
- ₹20 per share
- Lot size
- 6,000 shares
- Total issue size
- ₹10.74 Cr
- Market cap at offer price
- ₹40.74 Cr
- Promoter holding
- 100.00% → 73.64% pre-issue → post-issue
- ISIN
- INE0M9Q01011
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Srujan Alpha Capital Advisors LLP
- Registered office
- 226, Brigade Metropolis Arcade, Whitefield Main Road, Garudacharpalya, Bangalore Urban, Karnataka
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 2,70,000 | — | — |
Application size
Minimum 6,000 shares per lot, in multiples, at ₹20
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 6,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 12,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 48,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 54,000 | ₹10,80,000 |
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.
Valuation and performance
Valuation at offer price
₹20 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 5.46 | — |
| P/E (×) | 3.66 | — |
| Market cap | — | ₹40.74 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 42.60%
- NAV per share
- ₹1.51
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About DHARNI Capital Services SME
Dharni Capital Services Limited (formerly Dharni Online Services Private Limited) was incorporated on November 12, 2015 and converted to a public company in May 2022. The company offers a technology-enabled, comprehensive investment and financial services platform with end-to-end solutions for financial products distribution. It operates across multiple business verticals: mutual fund distribution (where it acts as a distributor for various AMCs and earns commissions), fixed deposit distribution services, real estate brokerage services under Karnataka RERA, and technical consultancy and outsourcing services. The company has a presence across both online and offline channels, serving clients through its platform and referral agents.
Company Analysis
from RHPDharni Capital Services Limited provides diversified financial services including mutual fund distribution, fixed deposit distribution, real estate brokerage, and technical consultancy across online and offline channels.
Dharni Capital Services Limited (formerly Dharni Online Services Private Limited) was incorporated on November 12, 2015 and converted to a public company in May 2022. The company offers a technology-enabled, comprehensive investment and financial services platform with end-to-end solutions for financial products distribution. It operates across multiple business verticals: mutual fund distribution (where it acts as a distributor for various AMCs and earns commissions), fixed deposit distribution services, real estate brokerage services under Karnataka RERA, and technical consultancy and outsourcing services. The company has a presence across both online and offline channels, serving clients through its platform and referral agents.
financial services distributionmutual fund distributionreal estate brokeragetechnical consultancy and outsourcingfixed deposit distribution
Objects of the Issue
- Investment in Wholly Owned Subsidiary Company ₹800.00 Lakhs p.27
- General Corporate Purpose ₹240.85 Lakhs (not exceeding 25% of gross proceeds) p.27
- Investment in Wholly owned Subsidiary Company ₹800.00 Lakhs p.108
- General corporate purposes ₹240.85 Lakhs p.108
- Repayment of borrowings
- General corporate purposes
Issue Structure
- Total Issue
- ₹1,074 Lakhs
- Fresh Issue
- ₹1,074 Lakhs (53,70,000 equity shares at ₹20 per share)
- Offer for Sale
- NIL (entire issue constitutes fresh issue of equity shares)
- Price Band
- ₹20 per equity share (fixed price)
- Lot Size
- 6,000 equity shares as market lot, in multiples of 6,000 thereafter
- Face Value
- ₹1/- per equity share
Business Model
The company earns revenue through commissions on mutual fund distribution (AUM-linked), fees from fixed deposit distribution, commissions from real estate brokerage transactions, and service fees/margins from technical consultancy and outsourcing projects. For the period ended September 30, 2022, technical consultancy and outsourcing contributed 47.84% of total revenue, real estate brokerage contributed 42.12%, mutual fund distribution contributed 6.02%, and fixed deposit distribution contributed 4.02%.
Business Segments
Acts as a distributor for various AMCs (Asset Management Companies), earning commissions based on AUM and trail income
Distribution of fixed deposits offered by various banks and financial institutions
Real estate brokerage services registered with Karnataka RERA, earning commissions from property transactions
Provides technical consultancy and outsourcing services by taking projects from clients and sub-distributing to professional individuals and organizations
Distribution of mutual fund products to clients through partnerships with multiple asset management companies including SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Aditya Birla Sunlife Mutual Fund, Nippon Mutual Fund, Kotak Mutual Fund, UTI Mutual Fund, and Axis Mutual Fund. The company is registered with AMFI (Registration Number ARN-144504).
Distribution of fixed deposits through partnerships with financial institutions including Shriram Transport Finance Limited, HDFC Limited, ICICI Home Finance Limited, and PNB Housing Finance Limited. The company is empaneled as a Fixed Deposit Broker and was one of the top distributors for Shriram Transport Finance Company Limited in Karnataka since November 2020.
Real estate brokerage services and property advisory services. The company is registered as a Real Estate Broker with Karnataka RERA Authority (Registration Number PRM/KA/RERA/1251/446/AG/210813/002502) and is registered as an Agent with large players like Prestige Estate Projects and Embassy Group.
Technical consultancy and outsourcing services through a network of professionals including IIT Graduates, IIM Graduates, and Chartered Accountants. The company acts as an intermediary between clients and service providers, with clients invoicing done in the company's name.
Distribution of mutual funds from multiple AMFI-registered fund houses including SBI, HDFC, ICICI Prudential, Aditya Birla Sunlife, Nippon, Kotak, UTI, and Axis mutual funds
Real estate brokerage services including property sales and leasing, registered as agent with Karnataka RERA Authority and broker with Prestige Estate Projects and Embassy Group
Fixed deposit placement services as empaneled broker with financial institutions including Shriram Transport Finance, HDFC, ICICI Home Finance, and PNB Housing Finance
Outsourced technical services provided to clients
Comprehensive financial advisory including wealth planning, retirement planning, tax planning, and portfolio management services
SWOT Analysis
Strengths
- • Diversified financial services across distribution and real estate(p.2)
- • Technology-enabled platform with omnichannel presence(p.2)
- • Established partnerships with multiple AMCs(p.39)
- • Registration with regulatory authorities in real estate(p.40)
- • AMFI-registered mutual fund distributor with growing scale(p.135)
- • Strong historical revenue growth in mutual fund distribution(p.135)
- • Diversified revenue streams across multiple financial services(p.138)
- • Established real estate broker registration with RERA authority(p.135)
- • Strong client relationships and retention over multi-year period(p.138)
- • Experienced promoter management with 20+ years in finance sector(p.160)
- • Diversified financial services across wealth planning, retirement planning, tax planning, real estate, and mutual funds(p.241)
- • AMFI registration and multiple mutual fund partnerships enabling distribution across major fund houses(p.242)
- • RERA registration and real estate brokerage partnerships with established developers(p.242)
- • Strong revenue growth trajectory with 475% increase in total revenue from FY2021 to FY2022(p.247)
- • Proprietary mobile applications ('Dharni Wealth' and 'Dharni Online') enabling digital client engagement(p.242)
- • Profitable operations with PAT of ₹96.58 lakhs in FY2022 and ₹58.73 lakhs in H1 FY2023(p.246)
Weaknesses
- • Excessive dependence on related-party referrals(p.38)
- • Registrations still in old company name(p.38)
- • Dependence on third parties for technical consultancy delivery(p.41)
- • Leased registered office with limited tenure(p.50)
- • Revenue concentrated in low-margin technical outsourcing(p.51)
- • Limited insurance coverage for assets(p.52)
- • No trademark registration for brand(p.48)
- • Past statutory compliance delays(p.49)
- • No alternate sources of funding identified(p.53)
- • High dependence on relatively small number of clients(p.136)
- • Significant concentration in debt mutual funds with lower margins(p.135)
- • Very small employee base(p.141)
- • Low margins in technical consultancy outsourcing business(p.136)
- • Operational scaling challenges with minimal headcount(p.139)
- • Extreme concentration of shareholding with promoter holding 93% of shares pre-IPO(p.179)
- • Heavy reliance on outsourcing contracts for revenue, with FY2022 earning ₹1,293 lakhs from single large outsourcing contract(p.247)
- • Minimal employee base creating operational risk and dependency on key managerial personnel(p.175)
- • High other expenses as percentage of revenue (73.35% in H1 FY2023) indicating limited operational leverage(p.246)
- • Significant cash outflow on investments (₹129.97 lakhs in H1 FY2023) raising capital efficiency questions(p.252)
Opportunities
- • High growth trajectory in mutual fund industry(p.26)
- • Strong Bangalore real estate market dynamics(p.40)
- • Investment in wholly owned subsidiary for business expansion(p.27)
- • Expand mutual fund AUM as market penetration remains low in India(p.130)
- • Leverage rising financial savings and shift from physical to financial assets(p.127)
- • Capitalize on digital adoption and smartphone penetration growth(p.129)
- • Grow client relationships and leverage existing platform(p.138)
- • Expand into wholly-owned subsidiary real estate investing and leasing(p.110)
- • Attract and retain talent to scale operations(p.139)
- • Expansion of wealth management services across asset classes and customer segments(p.242)
- • Growth in fixed deposit and mutual fund distribution driven by increasing investor participation(p.247)
- • Real estate advisory and brokerage expansion as corporate clients expand office spaces(p.247)
- • Digital platform leverage through mobile apps ('Dharni Wealth' and 'Dharni Online') for customer acquisition(p.242)
- • Geographic and service expansion leveraging AMFI and RERA registrations across India(p.242)
Threats
- • Regulatory environment subject to change and complex compliance requirements(p.37)
- • Dependence on AMC commission structures and regulatory changes(p.39)
- • Intense competition from larger and better-resourced competitors(p.39)
- • Real estate market price escalation reducing transaction volumes(p.40)
- • Direct online investment reducing intermediary demand(p.46)
- • Interest rate changes impacting fixed deposit demand(p.41)
- • COVID-19 pandemic impact on business operations and markets(p.43)
- • Slowdown in Indian economy affecting securities market and household savings(p.55)
- • Political and economic factors beyond company control(p.55)
- • Natural calamities impacting economy(p.56)
- • High inflation eroding margins and increasing costs(p.58)
- • Recent legislation (RERA) compliance challenges and costs(p.53)
- • Intense competition from established and new market entrants(p.140)
- • Market volatility and downturn in mutual fund industry(p.134)
- • Regulatory changes and market cyclicality in financial services(p.128)
- • Dependence on mutual fund distributor relationships with AMCs(p.135)
- • Regulatory restrictions and compliance requirements in financial services(p.144)
- • Poor financial literacy as barrier to mutual fund penetration(p.128)
- • Dependence on continuation of large outsourcing contract which contributed 88% of FY2022 revenues(p.247)
- • Regulatory changes in financial services distribution affecting mutual fund and FD business models(p.243)
- • Intense competition from established financial advisory firms and digital wealth platforms(p.256)
- • Exposure to market volatility and economic downturns affecting investment demand(p.243)
- • Uncertainty from COVID-19 pandemic impact on business continuity and client investment behavior(p.243)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Hemant Dharnidharka | Promoter | 93.00% | 69.33% (post-issue, estimated) |
| Preeti Saraogi | Promoter | 6.67% | 4.94% (post-issue, estimated) |
| Hemant Dharnidharka | Promoter | 93.00% | 68.48% |
| Preeti Saraogi | Promoter | 6.67% | 4.91% |
| Hemant Dharnidharka – HUF | Promoter Group | 0.07% | 0.05% |
| Pramod Kumar Dharnidharka | Promoter Group | 0.07% | 0.05% |
| Pramod Kumar Dharnidharka – HUF | Promoter Group | 0.07% | 0.05% |
| Payal Mohta | Promoter Group | 0.06% | 0.05% |
| Khushboo Kanodia | Promoter Group | 0.06% | 0.05% |
| Mr. Hemant Dharnidharka | Promoter | 93.00% | — |
| Mrs. Preeti Saraogi | Promoter | 6.67% | — |
| Hemant Dharnidharka | Promoter | — | — |
Leadership
Hemant Dharnidharka · Managing Director/Chairman
Preeti Saraogi · Non-Executive Director/Promoter
Pramod Dharnidharka · Chief Financial Officer
Mayank Mundhra · 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.
DHARNI Capital Services SME IPO FAQs
What is the lot size of DHARNI Capital Services SME IPO?
The minimum lot size of DHARNI Capital Services SME IPO is 6,000 shares. One lot costs ₹1,20,000 at the cut-off price.
When does DHARNI Capital Services SME IPO open and close?
DHARNI Capital Services SME IPO opened for subscription on 18 Jan 2023 and closed on 20 Jan 2023.
What is the listing date of DHARNI Capital Services SME IPO?
DHARNI Capital Services SME IPO listed on 31 Jan 2023.