Dhanlaxmi Crop Science shares made an impressive debut on the NSE SME platform on Monday, December 16, listing at ₹104.50 per share, a remarkable 90% premium over its issue price of ₹55.
The company’s ₹23.80 crore IPO, which opened for subscription between December 9 and December 11, was priced within a ₹52-55 per share band. The IPO saw overwhelming demand, with bids for 164.08 crore shares against the 29.52 lakh shares on offer, resulting in an astonishing 555.83 times subscription. Retail investors showed a strong response, with their portion booked 441.18 times. The non-institutional investor (NII) category was subscribed 1,241.27 times, and the qualified institutional buyers (QIB) portion was oversubscribed 197.65 times.
Key IPO Details
The Dhanlaxmi Crop Science IPO was an entirely fresh issue of 43.28 lakh shares, with no Offer for Sale (OFS) component. Following the issue, the promoter’s stake in the company will drop to 56.3% from 76.7% prior to the IPO. The company raised ₹6.37 crore from anchor investors on December 6.
Retail investors could participate with a minimum lot size of 2,000 shares, requiring an investment of ₹1.10 lakh.
Purpose of the Issue
The funds raised from the IPO will be used to meet working capital requirements, cover issue-related expenses, and fund general corporate purposes. These objectives aim to boost the company’s operational efficiency and ensure the smooth execution of its strategic initiatives.
About Dhanlaxmi Crop Science
Founded in 2005, Dhanlaxmi Crop Science is a leading technology-driven seed company that specializes in the development, production, processing, and sale of seeds for a wide range of field crops and vegetables. The company combines traditional breeding techniques with biotechnological advancements to produce hybrid and open-pollinated seeds with higher yields, improved quality, and enhanced pest resistance.
As of March 31, 2024, Dhanlaxmi Crop Science’s portfolio includes 24 different crop varieties across five states in India. The company’s major revenue contributor is cotton seeds, which accounted for 76.78% of its operating profit in FY 2024, with strong growth observed over the past three years.
With its strong financial performance, including a 37% revenue growth and a 55% increase in profit after tax from FY 2023 to FY 2024, Dhanlaxmi Crop Science is poised for continued growth in the agricultural sector.
IPO Lead Managers and Registrar
The book running lead manager for the IPO is Finshore Management Services Limited, while the registrar is Bigshare Services Pvt Ltd. The market maker for the issue is Mnm Stock Broking Private Limited.
Dhanlaxmi Crop Science’s successful IPO debut marks a significant milestone for the company as it continues to expand its footprint in the agriculture industry.
