Dhariwalcorp Ltd IPO: Review, Valuation, Opening Date & GMP

Dhariwalcorp Limited IPO - Complete Overview

Dhariwalcorp Limited IPO an SME IPO is a book-built issue of Rs.25.15 crore by Dhariwalcorp Limited that was established in 2020. The company deals in a diverse selection of waxes, industrial chemicals, and petroleum jelly and also deals with processing, buying, selling, importing, and trading a range of wax types such as Paraffin Wax, Micro Wax, Slack Wax, Carnauba Wax, Microcrystalline Waxes, Semi-Refined Paraffin Wax, Yellow Beeswax, Hydrocarbon Wax, montan wax, Polyethylene Wax, Vegetable Wax, Residue Wax, Palm Wax, BN Micro Wax, Hydrogenated Palm Wax, Micro Slack Wax, PE Wax, and Soya Wax.

The company also trades industrial chemicals like Rubber Process Oil, Light Liquid Paraffin (LLP), Citric Acid Monohydrate, Refined Glycerin, Bitumen, Stearic Acid, and different types of Petroleum Jelly such as Paraffin Petroleum Jelly and White Petroleum Jelly.

Dhariwalcorp caters to sectors like Plywood and Board, Paper Coating, Crayon Manufacturing, Candle Production, Textiles, Pharmaceuticals, Petroleum Jelly & Cosmetics, Tube & Tire Manufacturing, Match Production, Food Processing, and Adhesive Manufacturing. The company plays a crucial part in the supply chain of these industries, guaranteeing high-quality products and on-time delivery. The business runs a single processing facility and maintains storage facilities in Jodhpur, Rajasthan, Bhiwandi, Maharashtra, Ahmedabad, Gujarat, and Mundra, Dist. Kachchh, a region in Gujarat.

The company conducts business for domestic sales in 21 states and 3 Union territories in India. Products are also being exported to Nepal. In the FYs 2024, 2023, and 2022, the revenue from local sales amounted to Rs.226.30 Lac, Rs.191.93 Lac, and Rs.158.13 Lac, respectively, making up 98.91%, 98.97%, and 99.72% of the total operational revenue in those years. As of March 31, 2024, the organization employs a total of seven staff members across different departments.

The company plans to launch its SME IPO on August 1, 2024. 

 

 

Dhariwalcorp Limited IPO Overview

Dhariwalcorp IPO of Rs.25.15 crore comprises a wholly Fresh Issue of 23.72 lac Shares (amounting to Rs.25.15 crore) out of which 35% is allocated to retail investors, 50% to institutional investors, and 15% to non-institutional-investors.

This SME IPO will be available to investors on August 1, 2024, and conclude on August 5, 2024. The anticipated listing date for the IPO is Thursday, August 8, 2024, and will be held on the NSE and SME. The price range of each Share is Rs.102 to Rs.106.

If you want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

The company's revenue increased by 18.4%, while profit after tax (PAT) increased by 653.06% during the financial years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year ending March 31, 2024.

• The total revenue of the company is Rs.23,111.35 lac.

• The net worth of the company is Rs.875 lac.

• The company's EBITDA is Rs.668.73 lac.

• The total assets of the company are Rs.2,131.30 lac.
  
  

(Amount in Lac)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	2,131.30	1,961.06	1,351.04
Total Revenue	23,111.35	19,519.43	15,920.11
PAT	450.63	59.84	142.41
Net Worth	875.00	251.42	191.58
Reserve & Surplus	217.10	241.42	181.58
Borrowing	878.76	618.13	571.43

 

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in Lac)

Net Cash Flow In Multiple Activities	FY 2024	FY 2023	FY 2022
Net Cash Flow Operating Activities	29.65	80.02	95.50
Net Cash Flow Investing Activities	-325.64	1.73	-37.37
Net Cash Flow Financing Activities	298.85	-79.31	-53.71

 

Product-wise Revenue Breakdown For The Last Three Fiscals

 

Geography-wise Revenue Breakdown For The Last Three Fiscals

(Amount in Lac)

State	31 Mar 2024	31 Mar 2023	31 Mar 2022
Delhi	1,136.12	1,545.35	1,486.71
Gujarat	4,641.36	3,286.88	2,653.21
Maharashtra	6,684.34	6,011.49	5,392.43
Madhya Pradesh	176.95	131.00	140.58
Tamil Nadu	585.06	293.13	286.07
Uttar Pradesh	1,760.49	2,192.87	1,629.29
Rajasthan	2,215.00	1,886.83	1,329.70
Karnataka	1,036.87	841.77	343.90
Punjab	296.67	343.78	394.10

 

Geography-wise Revenue Breakdown of Non-Domestic Sales For The Last Three Fiscals

(Amount in Lac)

Country	31 Mar 2024	31 Mar 2023	31 Mar 2022
Nepal	250.18	200.17	44.90

 

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Meeting working capital requirements.

• Financing investment in building a warehouse.

• Corporate Purposes.

 

Peers of Dhariwalcorp Limited

No listed peer in the RHP of the company.

Evaluation

The price of this IPO is Rs.102 to Rs.106 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 March 2024, with EPS of Rs.6.87 from the last year, the resulting P/E ratio is 15.42x.

Considering the weighted EPS of Rs.4.10 for the last three years, the P/E ratio is 25.85x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is not available.

IPO's Strengths

• A large selection of goods.

• Benefits of Location.

• A skilled manager and promoter group.

• A solid rapport with customers.
  
  

IPO’s Weaknesses

• The business relies on its warehousing services for distributing the products and delivering their finished goods any interruption in their activities or a decline in the service standard could impact the company's image and outcomes of business activities.

• Its operations in a particular domestic market account for the majority of its sales. Our revenue and operating performance might be negatively impacted by any unfavorable events impacting its activities in these locations.

• Fluctuations in the prices of raw materials sourced by the company from overseas could result in changes in damages incurred by the company.

• The promoters of the Company own the land where the Centralized warehousing facility will be built.

 

IPO GMP Today

Dhariwalcorp Limited IPO’s latest GMP is Rs.36.

 

 

Dhariwalcorp Limited IPO Timetable (Tentative)

The IPO is scheduled from August 1 to August 5, 2024, with allotment on August 6, refund initiation on August 7, and listing on August 8, 2024.

Events	Date
IPO Opening Date	August 1, 2024
IPO Closing Date	August 5, 2024
IPO Allotment Date	August 6, 2024
Refund Initiation	August 7, 2024
IPO Listing Date	August 8, 2024

 

Dhariwalcorp Limited IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on August 1, close on August 5, and offer a total issue size of 2,372,400 Shares (aggregating up to Rs.25.15 Cr) comprising a whole fresh issue size of 2,372,400 Shares (totaling up to Rs.25.15 Cr).

IPO Opening & Closing Date	August 1, 2024 to August 5, 2024
Face Value	Rs.10 per Share
Issue Price	Rs.102 to Rs.106
Lot Size	1200 Shares
Issue Size	2,372,400 Shares (aggregating up to Rs.25.15 Cr).
Offer for Sale	NA.
Fresh Issue	2,372,400 Shares (aggregating up to Rs.25.15 Cr).
Listing at	NSE, SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

Dhariwalcorp Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.127200 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.254400.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

Dhariwalcorp Limited IPO Reservation

Institutional Portion	50%
Retail Portion	35%
Non-Institutional Portion	15%

 

Promoters And Management of Dhariwalcorp Limited IPO

• Mr. Manish Dhariwal

• Ms. Shakshi Dhariwal 

• Mr. Dilip Dhariwal

Pre-Issue Promoter Shareholding	99.99%
Post-Issue Promoter Shareholding	73.50%

 

 

Dhariwalcorp Limited IPO Lead Managers

• Shreni Shares Limited.
  
  

Dividend Policy

The company has no formal policy.

 

Conclusion

The company has experienced negative cash flow in financing and investing activities throughout the last few fiscal years. To achieve its goals, the company is currently launching an IPO for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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