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

 Dhariwalcorp Limited IPO - Complete Overview

Evaluation, Appraisal, Launch Date, and GMP of Dhariwalcorp Ltd.'s IPO

The Whole Story of Dhariwalcorp Limited's IPO

Dhariwalcorp Limited's book-built issue of Rs. 25.15 crore is a SME IPO. The company was founded in 2020. Petroleum jelly, industrial chemicals, and a wide variety of waxes are all dealt with by the company. It also processes, purchases, sells, imports, and trades a variety of wax types, including Paraffin, Micro, Slack, Carnauba, Microcrystalline, Yellow Beeswax, Hydrocarbon, Montan, Polyethylene, Vegetable, Residue, Palm, BN Micro, Hydrogenated Palm, Micro Slack, PE, and Soya wax.

In addition, the business deals in industrial chemicals such as stearic acid, bitumen, light liquid paraffin (LLP), Citric acid monohydrate, refined glycerin, rubber process oil, and several varieties of petroleum jelly, including white and paraffin jelly.

Plywood and board, paper coating, crayon manufacturing, candle production, textiles, pharmaceuticals, petroleum jelly & cosmetics, tire and tube manufacturing, match production, food processing, and adhesive manufacturing are just a few of the industries that Dhariwalcorp serves. As a vital link in these industries' supply chains, the firm ensures prompt delivery and high-quality products. The company operates storage facilities in Bhiwandi, Maharashtra, Ahmedabad, Gujarat, and Mundra, Dist. Kachchh, a district of Gujarat, in addition to operating a single processing facility.

The company operates in 21 Indian states and three Union territories for domestic sales. Additionally, products are exported to Nepal. Local sales revenue was Rs. 226.30 Lac, Rs. 191.93 Lac, and Rs. 158.13 Lac in the FYs 2024, 2023, and 2022, respectively. This represented 98.91%, 98.97%, and 99.72% of the total operational revenue for those years. As of March 31, 2024, the company had seven employees spread across several departments.

Dhariwalcorp Limited IPO Overview

The entire fresh issue of 23.72 lac shares, or Rs. 25.15 crore, is part of the Dhariwalcorp IPO. Of this amount, 35% are allotted to retail investors, 50% to institutional investors, and 15% to non-institutional investors.

Investments in this SME IPO will open on August 1, 2024, and it will end on August 5, 2024. The initial public offering (IPO) is scheduled to go live on the NSE and SME on Thursday, August 8, 2024. Each share has a price range of Rs. 102 to Rs. 106.

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.

The Issue's Objective

The following objectives are what the company hopes to achieve with the Net Proceeds from the Issue:

• satisfying the needs for working capital.

• funding the expenditure to construct a warehouse.

• Corporate Objectives.

Evaluation

Each share in this IPO is priced between Rs. 102 and Rs. 106.

An analysis of the P/E ratio

With EPS of Rs. 6.87 from the previous year and the FY ending on March 31, 2024, the resulting P/E ratio is 15.42x.

The P/E ratio is 25.85x when weighted EPS of Rs. 4.10 for the previous three years is taken into account.

Comparative Evaluation Using Listed References

It is not possible to find the industry's average P/E ratio.

 

IPO GMP Today

Dhariwalcorp Limited IPO’s latest GMP is Rs.40.

Conclusion

Over the past few fiscal years, the company's financing and investing activities have resulted in negative cash flow. The company is currently launching an IPO for the general public in order to accomplish its goals.

We hope that the information provided in this blog aids in your education regarding the financial performance of the company. Because it will provide you with trustworthy information on the company's insights, financials, and historical performance, this blog will be very helpful to you if you're looking for information about the upcoming IPO. Should this educational blog spark your curiosity, you might find our other pertinent and helpful articles on our website interesting to read.