Dollex Agrotech SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 15 Dec 2022 – 20 Dec 2022
- Listing date
- 28 Dec 2022
- Face value
- ₹10 per share
- Issue price
- ₹35 per share
- Lot size
- 4,000 shares
- Total issue size
- ₹24.39 Cr
- Market cap at offer price
- ₹87.39 Cr
- Promoter holding
- 99.50% → 71.69% pre-issue → post-issue
- ISIN
- INE0JHH01011
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Expert Global Consultants Pvt.Ltd.
- Registered office
- 205, Naroli Arcade 19/1, Manorama Ganj, Palasia Square, Madhya Pradesh
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 | 0 | — | — |
| Market maker | 3,52,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹35
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,40,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,80,000 |
| S-HNI (max) | 7 | 28,000 | ₹9,80,000 |
| B-HNI (min) | 8 | 32,000 | ₹11,20,000 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 1.63 | — |
| P/E (×) | 21.47 | — |
| Market cap | — | ₹87.39 Cr |
Key performance indicators
- Return on net worth
- 12.34%
- ROCE
- 9.00%
- Debt / equity
- 1.68
- PAT margin
- 4.00%
- NAV per share
- ₹13.25
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Dollex Agrotech SME
Dollex Agrotech Limited was incorporated as a private limited company on June 10, 2013, and converted to a public limited company on May 20, 2022. The company is engaged in manufacturing and trading of sugar with captive power co-generation capabilities. Its sugar manufacturing plant, established in 2018, is located in Datia, Madhya Pradesh, with a crushing capacity of 2,500 TCD. The company produces sugar and by-products including molasses, pressmud, and bagasse, which is used for power generation. The company generates captive power up to 3 MW and has received in-principle approval for a 200 KLPD distillery. The company aims to enter ethanol production under the EBP Program.
Company Analysis
from RHPDollex Agrotech Limited manufactures and trades sugar with captive power co-generation, operating in the sugar, power generation, and ethanol production sectors.
Dollex Agrotech Limited was incorporated as a private limited company on June 10, 2013, and converted to a public limited company on May 20, 2022. The company is engaged in manufacturing and trading of sugar with captive power co-generation capabilities. Its sugar manufacturing plant, established in 2018, is located in Datia, Madhya Pradesh, with a crushing capacity of 2,500 TCD. The company produces sugar and by-products including molasses, pressmud, and bagasse, which is used for power generation. The company generates captive power up to 3 MW and has received in-principle approval for a 200 KLPD distillery. The company aims to enter ethanol production under the EBP Program.
Objects of the Issue
- Working capital requirement ₹1,130.22 Lakh p.20
- General Corporate Purposes ₹399.92 Lakh p.20
- Issue Expenses ₹208.65 Lakh p.20
- Working Capital Requirement ₹1,130.22 lakhs p.71
- General Corporate Purposes ₹399.92 lakhs p.72
- Issue Expenses ₹208.65 lakhs p.72
- Repayment of borrowings
- General corporate purposes
Issue Structure
- Total Issue
- ₹2,438.80 Lakh
- Fresh Issue
- ₹1,738.80 Lakh (49,68,000 Equity Shares)
- Offer for Sale
- ₹700.00 Lakh (20,00,000 Equity Shares by Marium Leasing & Investment Private Limited)
- Price Band
- Fixed Price at ₹35.00 per Equity Share
- Face Value
- ₹10.00 per Equity Share
Business Model
The company manufactures sugar from sugarcane procured from independent farmers within its reserved area, generating revenue from sugar sales and by-products. It operates a captive power generation business primarily based on bagasse from sugar production. The company also plans to produce ethanol.
Business Segments
SWOT Analysis
- • Established sugar manufacturing with captive power generation capabilities(p.19)
- • In-principle approval for distillery expansion with 200 KLPD capacity(p.19)
- • Multiple revenue streams from sugar and by-products(p.19)
- • Allocated reserved sugarcane cultivation area with assured supply mechanism(p.25)
- • Experienced promoter with 26 years in sugar and ethanol business(p.94)
- • Established relationship with sugarcane farmers in reserve areas(p.103)
- • Capacity utilization improving over time(p.104)
- • Captive power generation capability from bagasse(p.93)
- • Approval for ethanol distillery expansion(p.93)
- • Sugar business experience and diversified operations capability(p.141)
- • Integrated sugar manufacturing with power co-generation capabilities(p.189)
- • Significant crushing capacity and production infrastructure(p.189)
- • Government approval for distillery expansion(p.189)
- • Multiple revenue streams from by-products(p.189)
- • Strong promoter ownership and control(p.142)
- • First-generation promoters with limited diversified business experience(p.25)
- • Negative operating cash flows in current and past years(p.27)
- • High working capital requirements with continuous increase in current years(p.30)
- • Unregistered trademark with limited statutory protection(p.33)
- • Promoter dependence on related party transactions(p.32)
- • Unsecured demand loans that may be recalled at any time(p.34)
- • Pending litigation against Company and Directors involving regulatory violations(p.26)
- • Promoters classified as promoters in delisted company Parvati Sweetners and Power Limited(p.29)
- • Dependence on a few key customers(p.105)
- • New company with limited operational history(p.103)
- • Concentrated plant location with single manufacturing facility(p.93)
- • Small workforce relative to operations(p.103)
- • Heavy dependence on related party financing(p.186)
- • History of loan defaults during COVID-19 period(p.203)
- • Company-level defaults on bank borrowings(p.203)
- • High debt-to-equity ratio and significant leverage(p.187)
- • Negative cash flow from operations in recent period(p.162)
- • Litigation and compliance violations(p.201)
- • Vision to enter ethanol production under EBP Program(p.19)
- • Government target for ethanol blending in petrol(p.40)
- • Growing sugar demand driven by population growth and rising income levels(p.28)
- • Government support for ethanol blending program with growing demand(p.99)
- • Ethanol demand projected to grow significantly through 2030(p.92)
- • Plan to enter ethanol production with MOUs with major oil companies(p.101)
- • Expansion into geographic markets through enhanced distribution(p.108)
- • Growth in India's sugar industry driven by rising consumption(p.90)
- • Distillery capacity expansion approved by Government(p.189)
- • Government investment promotion assistance available(p.164)
- • Growing demand for sugar and related products(p.196)
- • Profitability growth trajectory(p.196)
- • Capital market access through SME IPO(p.190)
- • Sugarcane supply shortage from adverse weather, crop disease, and farmer crop choice(p.26)
- • Sugarcane diversion to competing mills and farmer preference for other crops(p.25)
- • Government-regulated sugarcane procurement price (SAP) independent of market conditions(p.28)
- • Cyclical sugar industry with price volatility and margin compression(p.28)
- • Intense competition from numerous sugar manufacturers(p.29)
- • Government policy dependence on ethanol blending limits(p.40)
- • Water availability constraints for crushing operations(p.31)
- • Contractual obligations for ethanol supply with penalties for non-performance(p.29)
- • Regulatory compliance costs and environmental licensing requirements(p.39)
- • Government price regulation of sugar(p.90)
- • Sugar industry cyclicality and seasonal nature affecting cash flows(p.106)
- • High fragmentation and intense competition in Indian sugar sector(p.108)
- • No control over sugarcane availability and farmer negotiations(p.108)
- • Risk of government restrictions on sugar exports affecting operations(p.87)
- • Global sugar supply fluctuations and international competition(p.86)
- • Seasonal dependence of sugar business(p.197)
- • Environmental and regulatory compliance risks(p.201)
- • Litigation from customers regarding product quality(p.201)
- • Volatility in commodity prices and agricultural inputs(p.190)
- • Heavy competition in the sugar industry(p.197)
- • Dependence on sugarcane availability and supply chain(p.197)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Mehmood Khan | Promoter | 34.70% | 27.80% |
| Mrs. Munni Bee Khan | Promoter | 35.00% | 28.04% |
| Mehmood Khan | Promoter/Managing Director | 34.70% | — |
| Munni Bee Khan | Promoter/Whole Time Director | 35.00% | — |
| Mehmood Khan | Individual Promoter/Managing Director | 34.70% | — |
| Munni Bee | Individual Promoter/Whole Time Director | 35.00% | — |
| Marium Leasing & Investment Private Limited | Promoter Group Selling Shareholder | — | — |
Leadership
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.