Dhariwalcorp Limited IPO Overview

Dhariwalcorp Limited, a company specialising in the trading and processing of various waxes, industrial chemicals, and petroleum jelly, is launching an Initial Public Offering (IPO) on the National Stock Exchange (NSE) SME segment. The IPO is set to open on August 1, 2024, and close on August 5, 2024. The issue consists solely of a fresh issue of 2,372,400 shares, with no offer for sale portion, aiming to raise approximately ₹25.15 crore. The price band for the IPO is set between ₹102 to ₹106 per equity share, with a face value of ₹10 per share​.  Bigshare Services Pvt Ltd

Important dates

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
The 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

Financial Performance

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

IPO Objectives

The IPO aims to raise funds for several key purposes:

  • Funding capital expenditure for the construction of a new warehouse.
  • Supporting working capital requirements.
  • Covering general corporate expenses.

Dhariwalcorp IPO Lot Size

Investors can bid for a minimum of 1200 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

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

Dhariwalcorp IPO Details

IPO Date August 1, 2024 to August 5, 2024
Listing Date  Thursday, August 8, 2024
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

Dhariwalcorp IPO GMP Details

Dhariwalcorp IPO GMP is +60. This indicates Dhariwalcorp share price was trading at a premium of ₹64 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Dhariwalcorp share price was indicated at ₹170 apiece, which is 60.38% higher than the IPO price of ₹106.

GMP Date IPO Price GMP Sub2 Sauda Rate Estimated Listing Price Last Updated
05-08-2024 (Close) 106.00 ₹60 54700 ₹166 (56.6%) 5-Aug-2024 10:02
04-08-2024 106.00 ₹60 54700 ₹166 (56.6%) 4-Aug-2024 23:30
03-08-2024 106.00 ₹60 54700 ₹166 (56.6%) 3-Aug-2024 23:28
02-08-2024 106.00 ₹64 58400 ₹170 (60.38%) 2-Aug-2024 23:27
01-08-2024 (Open) 106.00 ₹60 54700 ₹166 (56.6%) 1-Aug-2024 23:27

Dhariwalcorp IPO subscription status

Dhariwalcorp IPO subscription status is 7.29 times, on day 2 so far.

The retail portion was subscribed 12.85 times, and the NII portion was booked 3.81 times.

The company has received bids for 1,15,78,800 shares against 15,88,800 shares on offer, at 15:18 IST, according to data on chittorgarh.com

Dhariwalcorp’s IPO subscription status was 3.37 times, on day 1.

Company Background and Operations

Dhariwalcorp Limited is engaged in trading a comprehensive range of waxes, including Paraffin Wax, Micro Wax, Slack Wax, and others. The company also deals in industrial chemicals like Rubber Process Oil, Citric Acid Monohydrate, and Light Liquid Paraffin. Dhariwalcorp serves various industries, such as Plywood and Board, Paper Coating, Crayon Manufacturing, Candle Production, Textiles, Pharmaceuticals, and more. The company has a PAN India presence, operating in 21 states and 3 Union territories, and also exports products to Nepal​ ​.

Dhariwalcorp’s operational infrastructure includes one processing unit and several warehouses located in Jodhpur, Rajasthan; Bhiwandi, Maharashtra; Ahmedabad, Gujarat; and Mundra, Gujarat. The company employs an outsourcing model for its warehouses in Bhiwandi, Ahmedabad, and Mundra to ensure efficient logistics and timely delivery​

Promoter and Management Team

The company’s promoters are Mr Manish Dhariwal, Ms Shakshi Dhariwal, and Mr Dilip Dhariwal, who have extensive experience in the waxes and industrial chemicals industry. Their leadership has been instrumental in the company’s growth and expansion across various regions in India​

Conclusion and Investor Considerations

Dhariwalcorp Limited’s IPO presents an opportunity for investors to participate in a company with a growing market presence in the trading of waxes and industrial chemicals. However, potential investors should consider the company’s financial performance, market position, and the broader economic environment before making investment decisions.

For more detailed information and to apply for the IPO, investors can refer to platforms like Zerodha, Upstox, and Paytm Money, or consult their financial advisors​