Dhariwalcorp IPO Oversubscribed 7x on Day 2; Retail and NII Portions in High Demand
Dhariwalcorp has launched its initial public offering (IPO) subscription period, which began on Thursday, August 1, and will conclude on Monday, August 5. The price range for the IPO has been set between ₹102 and ₹106 per share, with a face value of ₹10. Investors can bid for multiples of these shares, with the minimum bid set at 1,200 shares.
IPO Subscription Status
As of the second day of the subscription period, the Dhariwalcorp IPO has achieved a subscription status of 7.29 times. The retail portion was subscribed 12.85 times, while the Non-Institutional Investors (NII) portion was booked 3.81 times. The company has received bids for 1,15,78,800 shares against the 15,88,800 shares on offer, as per the latest data from chittorgarh.com.
On the first day of the subscription period, the Dhariwalcorp IPO subscription status stood at 3.37 times.
IPO Details
The Dhariwalcorp IPO, valued at ₹25.15 crore, comprises a fresh issuance of 2,372,400 equity shares with a face value of ₹10 each. Importantly, this IPO does not include an “offer for sale” component.
Use of Proceeds
The net proceeds from the IPO will be allocated to the following purposes:
- Financing capital expenditures for the construction of a warehouse.
- Financing the company’s working capital needs.
- Financing general corporate objectives.
IPO Management
Shreni Shares Limited is the book running lead manager for the Dhariwalcorp IPO, while Bigshare Services Pvt Ltd serves as the registrar. Additionally, Shreni Shares is also the market maker for this IPO.
Grey Market Premium (GMP)
As of today, the Dhariwalcorp IPO GMP stands at +64. This indicates that the Dhariwalcorp share price is trading at a premium of ₹64 in the grey market, as per 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 shares is ₹170 apiece, which represents a 60.38% increase over the IPO price of ₹106.
Market Position and Competitive Edge
According to the red herring prospectus, no listed companies in India or abroad are currently establishing a product line comparable to that of Dhariwalcorp. This unique positioning in the market provides Dhariwalcorp with a competitive edge, making it an attractive investment opportunity.
Company Overview
Dhariwalcorp is a dynamic company engaged in the trading of petroleum jelly, industrial chemicals, and various types of waxes. The company’s activities include processing, buying, selling, importing, and trading of different kinds of wax, such as 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 wax.
With a robust presence across 21 states and 3 Union territories in India, Dhariwalcorp has established itself as a significant player in the domestic market based on revenues for the fiscal years ending on March 31, 2024, 2023, and 2022. Additionally, the company has ventured into the international market, supplying goods to Nepal based on revenues for the fiscal year ending March 31, 2024.
Financial Performance
Dhariwalcorp has shown strong financial performance over the past three fiscal years. For fiscal years 2024, 2023, and 2022, the company’s domestic sales income was ₹226.30 lakhs, ₹191.93 lakhs, and ₹158.13 lakhs, respectively. These figures represented 98.91%, 98.97%, and 99.72% of their total operational revenue, underscoring the company’s significant presence in the domestic market.
Industry Outlook
The industry in which Dhariwalcorp operates is poised for growth, driven by increasing demand for petroleum jelly, industrial chemicals, and various types of waxes. The company’s extensive product range and established market presence position it well to capitalize on these growth opportunities.
Conclusion
The Dhariwalcorp IPO presents a compelling investment opportunity, backed by the company’s strong financial performance, unique market position, and robust subscription status. Investors should carefully consider the IPO details, financial performance, and market outlook before making an investment decision.
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