Dhanlaxmi Crop Science is set to launch its IPO on December 9, aiming to raise ₹23.80 crore through the issuance of 4.328 million fresh equity shares. Notably, the IPO will not include an Offer for Sale (OFS) component, meaning the entire proceeds will directly benefit the company. The price band for the IPO has been set at ₹52-₹55 per share. Investors can subscribe to the IPO until December 11, with trading on the NSE Emerge platform expected to begin on December 16.
This IPO will be the fifth SME segment IPO in December, following recent launches by companies like Nissans Financial Services, Emerald Tire Manufacturers, Jungle Camps India, and Purple United Sales. Finshore Management Services is the appointed Book Running Lead Manager (BRLM) for the issue.
Dhanlaxmi Crop Science IPO Allocation Breakdown
- 50% (excluding the market maker portion) is reserved for Qualified Institutional Buyers (QIBs).
- 15% is allocated for Non-Institutional Investors (NIIs).
- 35% is earmarked for retail investors.
Purpose of the IPO:
The Gujarat-based seed producer plans to utilize the funds (net of issue expenses) to meet its working capital requirements, with the remaining amount directed towards general corporate purposes.
Dhanlaxmi Crop Science IPO Business Overview
Dhanlaxmi Crop Science focuses on the production, processing, and sale of seeds for various crops and vegetables. In FY24, cotton seeds contributed to 76% of the company’s revenue. By September 2024, the company was producing seeds for 24 field crops and vegetables across five states and had a network of 1,185 authorized dealers and distributors in Gujarat, Rajasthan, Haryana, and Maharashtra.
For the fiscal year ending March 2024, the company reported a net profit of ₹4.65 crore, up from ₹3 crore in the previous year. Revenue also saw a significant increase, reaching ₹63.7 crore, compared to ₹46.6 crore the prior year.
Disclaimer
This information is provided for general awareness. Investing in the stock market involves risks. Investors are advised to consult financial experts before making investment decisions.