Bumper Debut! Dhanlaxmi Crop Science shares list at ₹104.5 on NSE SME, up 90% from IPO price | Stock Market News

Dhanlaxmi Crop Science IPO listing: Dhanlaxmi Crop Science shares made a muted debut on Monday, December 16. It listed at ₹104.5 on NSE SME, a premium of 90% percent over the issue price of ₹55.

Dhanlaxmi Crop Science’s SME initial public offering (IPO), valued at ₹23.80 crore, was open for subscription from December 9 to December 11. It has fixed the Dhanlaxmi Crop IPO price band at ₹52-55 per equity share.

Following the three days of bidding, Dhanlaxmi Crop IPO closed with robust demand, garnering 555.83 times bids. The IPO received bids for 164.08 crore shares against 29.52 lakh shares on offer. The retail investor segment was booked 441.18 times, while the non-institutional investors (NII) category was subscribed 1,241.27 times. Meanwhile, The qualified institutional buyers (QIB) portion was bid 197.65 times.

About the IPO

Dhanlaxmi Crop IPO was entirely a fresh issue of 43.28 lakh shares. The was no offer for sale (OFS) component in the IPO. Post the issue, promoter shareholding in the company will be reduced to 56.3 percent from 76.7 percent before the IPO. The company raised ₹6.37 crore from anchor investors on December 6, 2024. Retail investors could apply with a minimum lot size of 2,000 shares, requiring a minimum investment of ₹1.10 lakh.

The primary objectives of the issue include addressing the company’s working capital requirements, covering expenses related to the issue, and funding general corporate purposes. These aims are designed to enhance the company’s operational efficiency, ensure seamless execution of the issue process, and support broader strategic initiatives.

Of the net offer, 18 percent is reserved for qualified institutional bidders (QIBs). Non-institutional investors (NIIs) and retail investors will have allocations of 15 percent and 35 percent of the net offer, respectively.

Finshore Management Services Limited is the book running lead manager of the Dhanlaxmi Crop Science IPO, while Bigshare Services Pvt Ltd is the registrar for the issue.The market maker for Dhanlaxmi Crop Science IPO is Mnm Stock Broking Private Limited.

“The company is engaged in providing technology driven seeds with major focus on cotton seeds. It marked steady growth in its top and bottom lines for the reported periods. However, bumper profit for H1 of FY25 raises eyebrows and concern over its sustainability. Based on FY25 annualized super earnings, the issue appears fully priced. Well-informed investors may park funds for medium to long term,” said Dilip Davda of Chittorgarh.com with a may apply rating.

About the Company

Established in 2005, Dhanlaxmi Crop Science is a technology-driven seed company specializing in the development, production, processing, and sale of seeds for various field crops and vegetables. By combining traditional breeding methods with advanced biotechnological tools, the company focuses on creating hybrid and open-pollinated seed varieties that deliver higher yields, improved quality, and greater resistance to pests and diseases compared to naturally occurring varieties.

As of March 31, 2024, Dhanlaxmi Crop Science had diversified its seed production to include 24 different crops and vegetables, operating across five states in India. Cotton seeds remain a significant contributor to its profitability, accounting for 76.78 percent, 71.47 percent, and 64.73 percent of operating profit in FY 2024, FY 2023, and FY 2022, respectively.

The company’s financial performance has been impressive, with revenue growing by 37 percent and profit after tax (PAT) increasing by 55 percent between the financial years ending March 31, 2024, and March 31, 2023.