Dharmaj Crop Guard files IPO papers to raise Rs 300 crore

Ahmedabad-based agrochemicals company Dharmaj Crop Guard Limited has filed its draft red herring prospectus (DRHP) for its initial public offering (IPO) to raise Rs 300 crore.

The issue consists of equity shares worth up to Rs 216 crore with a face value of Rs 10 each and an offer-for-sale (OFS) of up to 14.83 lakh equity shares by existing shareholders.

Out of the proceeds from the fresh issuance, an amount of Rs 105 crore will be utilised for funding capital expenditure towards setting up of a manufacturing facility at Saykha Bharuch, Gujarat, Rs 45 crore for funding incremental working capital requirements, Rs 10 crore for the repayment or prepayment of borrowings, in full or part of all or certain borrowings for the company besides general corporate purposes.


The company is 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 the B2C and B2B customers

Dharmaj Crop Guard’s revenue from operations grew 52.56 per cent to Rs 302.41 crore for fiscal 2021 against Rs 198.22 crore for fiscal 2020, while its net profit grew 94.85 per cent from Rs 10.73 crore in FY20 to Rs 20.92 crore in FY21.

Monarch Networth Capital and Elara Capital (India) are the book-running lead managers to the issue.