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31 July 2024

Dhariwalcorp Limited IPO

The company specializes in trading industrial chemicals and waxes, including Rubber Process Oil, Citric Acid, Bitumen, and Petroleum Jelly. We serve diverse industries such as textiles, pharmaceuticals, and food processing, with a strong presence across 21 Indian states and 3 Union territories. We have also begun exporting to Nepal. Our operations include a processing unit and multiple warehouses in Rajasthan, Maharashtra, Gujarat, and Kachchh. We source products both domestically and internationally from countries like China, Egypt, and the UAE.

Committed to quality and safety, we continuously enhance our products and services to meet industry standards and customer needs. The Dhariwalcorp IPO is a book-built issue valued at ₹25.15 crores, consisting entirely of a fresh issue of 2,372,000 shares. The IPO will be open for subscription from August 1, 2024, to August 5, 2024. Allotments are expected to be finalised on August 6, 2024, with the shares scheduled to be listed on the NSE SME on August 8, 2024. The price band for the IPO is set between ₹102 and ₹106 per share. Retail investors must apply for a minimum of 1,200 shares, requiring an investment of ₹127,200. For High Net-Worth Individuals (HNIs), the minimum investment is for 2 lots (2,400 shares), totalling ₹254,400. Shreni Shares Limited is the book-running lead manager for the IPO, Bigshare Services Pvt Ltd is the registrar, and Shreni Shares is the market maker.

Dhariwalcorp Limited IPO Overview

Detail	Description
IPO Date	August 1, 2024 to August 5, 2024
Listing Date	[.]
Face Value	₹10 per share
Price Band	₹102 to ₹106 per share
Lot Size	1200 Shares
Total Issue Size	2,372,400 shares (aggregating up to ₹25.15 Cr)
Fresh Issue	2,372,400 shares (aggregating up to ₹25.15 Cr)
Issue Type	Book Built Issue IPO
Listing At	NSE SME
Shareholding pre issue	6,579,000
Shareholding post issue	8,951,400
Market Maker portion	123,600 shares Shreni Shares

Dhariwalcorp Limited IPO Timeline (Tentative Schedule)

Detail	Description
IPO Open Date	Thursday, August 1, 2024
IPO Close Date	Monday, August 5, 2024
Basis of Allotment	Tuesday, August 6, 2024
Initiation of Refunds	Wednesday, August 7, 2024
Credit of Shares to Demat	Wednesday, August 7, 2024
Listing Date	Thursday, August 8, 2024
Cut-off time for UPI mandate confirmation	5 PM on August 5, 2024

Dhariwalcorp Limited IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	1200	₹127,200
Retail (Max)	1	1200	₹127,200
HNI (Min)	2	2400	₹254,400

Dhariwalcorp Limited IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not more than 50% of the Net Issue
Retail Shares Offered	Not less than 35% of the Net Issue
NII (HNI) Shares Offered	Not less than 15% of the Net Issue

Dhariwalcorp Limited IPO Promoter Holding

Share Holding Pre Issue	99.99%
Share Holding Post Issue	73.50%

Company & Financials

The company, active across 21 Indian states and exporting to Nepal, specializes in waxes, industrial chemicals, and petroleum jelly. It has a processing unit and four warehouses, emphasizing efficient logistics and safety. Led by experienced promoters, it leverages its optimized supply chain for a competitive market edge. Handling cargo and forwarding freight

Market Presence: The company operates across 21 states and 3 Union territories in India and has begun exporting to Nepal.

Revenue: For the fiscal years 2024, 2023, and 2022, domestic sales generated ₹226.30 Lakhs, ₹191.93 Lakhs, and ₹158.13 Lakhs respectively, contributing 98.91%, 98.97%, and 99.72% of total revenue.

Facilities: The company has one processing unit and four warehouses located in Jodhpur, Bhiwandi, Ahmedabad, and Mundra. Outsourcing is used for warehouses in Bhiwandi, Ahmedabad, and Mundra.

Safety & Logistics: Facilities are equipped with necessary equipment and follow strict safety norms. The company emphasizes efficient logistics and supply chain management.

Procurement: Products are sourced both domestically and internationally from countries like China, Egypt, Singapore, UAE, UK, and Hong Kong.

Product Range: Specializes in waxes, industrial chemicals, and petroleum jelly for various applications, including Plywood, Paper Coating, Candle Production, and more.

Management: Promoted by Mr Manish Dhariwal and Ms Shakshi Dhariwal, who have 15+ and 10+ years of experience in the industry respectively.

Competitive Edge: Focus on quality, sustainability, and efficient supply chain management provides a competitive advantage in the wax and chemicals market.

Dhariwalcorp Limited IPO Financial Information

Period Ended	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	2131.30	1961.06	1351.04
Revenue	23111.35	19519.43	15920.11
Profit After Tax	450.63	59.84	142.41
Net Worth	875.00	251.42	191.58
Reserves and Surplus	217.10	241.42	181.58
Total Borrowing	878.76	618.13	571.43
Amount in ₹ Lakhs

Key Performance Indicator

KPI	Values
ROE	51.50%
ROCE	59.80%
Debt/Equity	1
RoNW	51.50%
P/BV	7.95
PAT Margin (%)	1.97

	Pre IPO	Post IPO
EPS (Rs)	6.85	5.03
P/E (x)	15.48	21.06

Objectives of Dhariwalcorp Limited IPO

The company plans to use the net proceeds from the issue for the following purposes:

● Financing the construction of a new warehouse
● Supporting the company's working capital needs
● Covering general corporate expenses

Dhariwalcorp Limited IPO Review

The company is launching its first book-built IPO, offering 2,372,400 equity shares with a face value of ₹10 each, aiming to raise ₹25.15 crore at the upper price limit. The price band is set between ₹102 and ₹106 per share. The subscription period runs from August 1, 2024, to August 5, 2024, with a minimum application of 1,200 shares and additional lots in multiples of 1,200. Shares will be listed on the NSE SME Emerge platform post allotment. The issue represents 26.50% of the company’s post-IPO paid-up capital. The proceeds will be allocated as follows: ₹8.00 crore for working capital, ₹8.10 crore for warehouse construction, and the remaining amount for general corporate purposes. Previously, the company issued equity shares at par and later at ₹655 per share in December 2023, followed by a 50:1 bonus issue in March 2024. The average acquisition cost for promoters is ₹3.04 and ₹12.84 per share. After the IPO, the company’s paid-up equity capital will increase from ₹6.58 crore to ₹8.95 crore. At the upper end of the IPO price range, the company is targeting a market capitalization of ₹94.89 crore.

FAQs for Dhariwalcorp Limited IPO

What is Dhariwalcorp Limited IPO?

Dhariwalcorp IPO is an SME IPO of 2,372,400 equity shares of a face value of ₹10 aggregating up to ₹25.15 Crores. The issue is priced at ₹102 to ₹106 per share. The minimum order quantity is 1200 Shares.
When will Dhariwalcorp Limited IPO?

The IPO opens on August 1, 2024, and closes on August 5, 2024.
What is Dhariwalcorp Limited IPO Investors Portion?

The investors’ portion for QIB is 50%, NII is 15%, and Retail is 35%.
What is Dhariwalcorp Limited IPO Size?

Dhariwalcorp Limited IPO Size is ₹25.15 crores.
What is Dhariwalcorp Limited's Price Band?

Dhariwalcorp Limited IPO Price Band is ₹102 to ₹106 per share.
What is Dhariwalcorp Limited's Minimum and Maximum Lot Size?

Dhariwalcorp's IPO lot size is 1200 Shares, and the minimum amount required is ₹127,200.
What is the Dhariwalcorp Limited IPO Allotment Date?

Dhariwalcorp IPO will be done on Tuesday, August 6, 2024, and the allotted shares will be credited to your demat account by Wednesday, August 7, 2024.
What is the Dhariwalcorp Limited IPO Listing Date?

The tentative date of Dhariwalcorp's IPO listing is Thursday, August 8, 2024.