Dhanlaxmi Crop Science SME IPO to hit Dalal Street on Dec 9, shares to list on Dec 16

Dhanlaxmi Crop Science IPO

Dhanlaxmi Crop Science is ready to launch its initial share sale for fund raising on December 9, with a price band of Rs 52-55 per share. This would be fifth IPO from the small and medium enterprise (SME) segment in December after Nisus Finance Services Co, Emerald Tyre Manufacturers, Jungle Camps India, and Purple United Sales.

The company intends to raise Rs 23.8 crore via initial public offering of 43.28 lakh shares at the upper price band. This book-built issue comprises of entirely fresh issue with no offer-for-sale component.

The public issue will close on December 11, while the anchor book, if any, will be opened for a day on December 6. The company has reserved half of its net issue size (excluding market maker portion) for qualified institutional buyers, 15 percent for non-institutional investors, and the remainder 35 percent for retail investors.

Dhanlaxmi Crop Science produces, processes and sells seeds for various field crops and vegetables, with cotton seeds contributing the majority of revenue at 76 percent in FY24. As of September 2024, it produced seeds for 24 different field crops and vegetables with operations in 5 states, while it has 1,185 authorised dealers or distributors in 4 states (Gujarat, Rajasthan, Haryana and Maharashtra).

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It had access to farmland in 4 states in India, primarily through contractual arrangements with over 45 seed growers/organizers.

The Gujarat-based seeds producer will utilise IPO proceeds (excluding offer expenses) mainly for its working capital requirements and the remainder for general corporate purposes.

It has reported net profit at Rs 4.65 crore for year ended March 2024, increasing from Rs 3 crore in the previous year. Revenue from operations soared to Rs 63.7 crore, up from Rs 46.6 crore a year ago.

Also read: Purple United Sales set to launch its Rs 33-crore IPO on December 11

Investors can start trading in Dhanlaxmi Crop Science shares on the NSE Emerge effective December 16. Finshore Management Services is appointed as the book running lead manager to the issue.