Dhariwalcorp Limited IPO

NiftyTrader • July 30, 2024

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Dhariwal Corp Limited IPO opens on August 1, 2024, and closes on August 5, 2024. The allotment for the Dhariwal Corp IPO is anticipated to be completed on Tuesday, August 6, 2024. The IPO will be listed on the SME and NSE, with a tentative date set for Thursday, August 8,2024.

The price band for the Dhariwal Corp IPO is set at Rs 102 to Rs 106 per share. The IPO is a book-built issue of Rs 25.15 crores, entirely a fresh issue of 23.72 lakh shares.

Dhariwalcorp IPO Details

IPO Date	August 1, 2024 to August 5, 2024
Listing Date	[.]
Face Value	₹10 per share
Price	₹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

Dhariwalcorp 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 IPO Objectives

The objectives of the Issue are:

Funding Working Capital requirement of the company
Funding Capital Expenditure towards construction of Warehouse
General Corporate Purpose.

About Dhariwalcorp Limited

Dhariwal Group Limited, founded in 2020, specializes in trading a diverse range of waxes, industrial chemicals, and petroleum jelly. The company handles the processing, purchasing, selling, importing, and trading of various wax types, including Paraffin, Micro, Slack, Carnauba, Microcrystalline, Semi-Refined Paraffin, Yellow Beeswax, Hydrocarbon, Montan, Polyethylene, Vegetable, Residue, Palm, BN Micro, Hydrogenated Palm, Micro Slack, PE, and Soya waxes.

In addition to waxes, Dhariwal Corp offers industrial chemicals such as Rubber Process Oil, Light Liquid Paraffin (LLP), Citric Acid Monohydrate, Refined Glycerin, Bitumen, Stearic Acid, and Petroleum Jelly (both Paraffin and White variants).

The company provides products to a range of industries, including Plywood and Board, Paper Coating, Crayon Manufacturing, Candle Production, Textiles, Pharmaceuticals, Cosmetics (particularly Petroleum Jelly), Tube & Tire Manufacturing, Match Production, Food Processing, and Adhesive Manufacturing. It plays a crucial role in the supply chain, ensuring high-quality products and reliable delivery.

Dhariwal Group operates a processing facility and maintains warehouses in Jodhpur, Rajasthan; Bhiwandi, Maharashtra; Ahmedabad, Gujarat; and Mundra, Kachchh, Gujarat. The company serves 21 states and 3 Union territories within India and exports to Nepal. For the fiscal years 2024, 2023, and 2022, the company reported domestic sales revenues of ₹226.30 lakhs, ₹191.93 lakhs, and ₹158.13 lakhs, respectively, accounting for 98.91%, 98.97%, and 99.72% of its total operational revenue.

As of March 31, 2024, Dhariwal Group employs seven individuals across its various departments.

Dhariwalcorp Limited Financial Information

Dhariwalcorp Limited’s revenue increased by 18.4% and profit after tax (PAT) rose by 653.06% between the financial year ending with March 31, 2024 and March 31, 2023.

Period Ended	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	2,131.30	1,961.06	1,351.04
Revenue	23,111.35	19,519.43	15,920.11
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

Dhariwalcorp 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 IPO Timeline

Dhariwalcorp IPO opens on August 1, 2024, and closes on August 5, 2024.

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
A 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

Conclusion

The Dhariwal Corp Limited IPO offers a compelling opportunity for investors with a price band set at Rs 102 to Rs 106 per share, aiming to raise Rs 25.15 crores through a fresh issue of 2,372,400 shares. The IPO proceeds will be used for working capital requirements, capital expenditures for warehouse construction, and general corporate purposes. The company, specializing in a diverse range of waxes and industrial chemicals, has shown substantial financial growth, with a notable increase in revenue and profit after tax in recent years. With its strong presence across India and exports to Nepal, Dhariwal Corp is well-positioned in its sector. The IPO listing is scheduled for August 8, 2024, on the NSE SME, marking a significant milestone in the company’s growth trajectory.