Dhanlaxmi Crop Science IPO to Open on December 9, 2024; Price Band Set at Rs52-Rs55 Per Share

PNN
Ahmedabad (Gujarat) [India], December 9: Serving Indian farmers since 2005, Dhanlaxmi Crop Science is a technology-driven seed company engaged in the development, production, processing, and supply of hybrid and open-pollinated seeds for a wide range of field crops and vegetables. These seeds ensure better quality and higher yields suited to diverse agro-climatic conditions. The company is poised for its Initial Public Offering (IPO), with plans to raise Rs23.80 crores through the issuance of 43.28 lakh new shares.
For its SME Initial Public Offering (IPO), Dhanlaxmi Crop Science Limited has established a price band of Rs52 to Rs55 per share. The company's shares will open for subscription on December 9, 2024, and close on December 11, 2024. These shares will be listed on the NSE SME platform, with a projected listing date of Monday, December 16, 2024.
Finshore Management Services Limited is the book-running lead manager for the Dhanlaxmi Crop Science IPO, while Bigshare Services Pvt Ltd is the registrar for the issue.
The proceeds from the issue will be utilized to meet working capital requirements and for general corporate purposes. The shares for the Dhanlaxmi Crop Science IPO are expected to be allotted on Thursday, December 12, 2024, and credited to the demat accounts of the allottees on Friday, December 13, 2024. The IPO allocation comprises 50% of the net issue for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for the Non-Institutional Investor (NII) segment.
Retail investors need to contribute a minimum of Rs1,10,000, as the minimum lot size for an application is 2,000 shares. For HNIs, the minimum bidding size is two lots, or 4,000 shares, requiring a total investment of Rs2,20,000 at the upper price band.
Dhanlaxmi Crop Science Ltd reported revenue of Rs11,996.26 lakhs for HY1 FY25, with a net profit of Rs820.81 lakhs. The company boasts a Return on Capital Employed (ROCE) of 39.07%, a Return on Equity (ROE) of 33.82%, and a Debt-to-Equity ratio of 0.06.
The company integrates traditional breeding techniques with biotechnological tools to produce hybrid and open-pollinated varieties of field crops and vegetable seeds. These seeds offer higher yields, improved quality, and greater tolerance to pests and diseases compared to naturally occurring varieties.
As of March 31, 2024, the company's product portfolio includes over 24 seed varieties for various field crops and vegetables. It operates through a network of 1,185 authorized dealers across four states and has access to farmland in four states through contractual agreements with more than 45 seed growers and organizers.
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