Dharmaj Crop Guard Limited IPO Detail

Dharmaj Crop Guard IPO opening date not announced till date. According to the DRHP filed by the company with SEBI, IPO containing fresh equity worth ₹216 crores and offer for sale of 14,83,000 shares. The price band for IPO is ₹216 to ₹237 per share.

Incorporated in 2015. Dharmaj Crop Guard is an agrochemical company engaged in the business of manufacturing, distributing, and marketing a wide range of agrochemical formulations such as insecticides, fungicides, herbicides, plant growth regulators, micro fertilizers, and antibiotics to B2C and B2B customers.

The company also markets and distributes agrochemical products to Indian farmers through its distribution network under in-licensed, owned by the company, and generic brands. They provide crop protection solutions to the farmer to assist them in maximizing productivity and profitability.

Customers can purchase agrochemical goods from them in liquid, powder, and granule form. The business also produces and sells generic insect and pest control products for the preservation of human and animal health. Additionally, they offer bulk items to institutional clients both domestically and abroad.

More than 600 customers in India and other countries were served by Dharmaj Crop Guard Limited’s more than 196 institutional products as of November 30, 2021.

STRENGTH

1. Diversified portfolio of our products and consistent focus on quality and innovation.
2. Strong R&D capabilities with focus on innovation and sustainability.
3. Established distribution network with strong branded products and stable relationship with its institutional customers.
4. Experienced Promoters and management team.
5. Track record of strong operational and financial performance.

WEAKNESS

1. Company business is subject to climatic conditions and is cyclical in nature. Seasonal variations and unfavourable local and global weather patterns may have an adverse effect on its business, results of operations and financial conditions.
2. There are outstanding litigation proceedings against Company, Promoters and its Directors. Any adverse outcome in such proceedings may have an adverse impact on company reputation, business, financial condition, results of operations and cash flows.
3. Company insurance coverage may not be sufficient or adequate to protect against all material hazards.

OPPORTUNITY

1. The future of agrochemicals looks bright, considering global population growth, growing imperative to protect against crop losses and increase yields, rising consumer demand for sustainably produced food, and the role of agrochemicals in tackling climate change.
2. The overall Indian pesticides and other agrochemicals industry is estimated to increase at a CAGR of 5.2%-5.7% by 2023-24 on account of an upward growth expected in the international market and a likely increase in domestic usage of pesticides in India. (Source: Company Commissioned CareEdge Report)

THREAT

1. Competition from domestic as well as multinational players.
2. Changes in technology.