Dhanlaxmi Crop Science IPO Day 1: NSE SME issue booked over 18 times; check subscription status, price band and listing date

The initial public offering (IPO) of seed manufacturing company Dhanlaxmi Crop Science has been booked more than 16 times on the first day of bidding on Monday. The retail investors showed the highest demand.

The NSE SME issue was subscribed 18.51 times on the first day of bidding with applications for 5.46 crore shares against 29.52 lakh shares on offer.

The ₹23.8-crore public offer is open for subscription from December 9 to December 11.

According to the NSE data at the end of bidding on the first day at 5pm, the retail investors applied for more than 4.5 crore shares against 15.22 lakh shares. The retail portion of the IPO was booked 29.61 times. The Non-institutional Investors (NIIs) booked their segment 13 times with applications for 85.58 lakh shares against 6.58 lakh shares on offer.

The Qualified Institutional Buyers (QIBs) applied for 10.16 lakh equity shares against 7.72 lakh shares reserved for them. The QIBs booked their quota 1.31 times.

Dhanlaxmi Crop Science raises ₹6.37 crore from anchor investors

Ahead of the launch of the IPO, Dhanlaxmi Crop Science raised ₹6.37 crore from anchor investors. The company allotted 11,58,000 shares to five fund schemes at a price of ₹55 per share.

Ashika Global Securities Private Limited, VIJIT Growth Fund, Vikasa India EIF I Fund, Eminence Global Fund PCC, Abundantia Capital VCC are the anchor investors

Dhanlaxmi Crop Science IPO offer size, price band and other details

The ₹23.8-crore NSE SME issue comprises a fresh issuance of 43.28 lakh shares and no offer-for-sale (OFS) component. The IPO will close for bidding on December 11.

Of the total issue size, up to 2,18,000 equity shares have been set aside for market makers.

The company has fixed the price band at ₹52 to ₹55 per share. The minimum lot size is 2,000 shares for retail investors. The retail investors need to invest at least ₹1,10,000 per application.

Dhanlaxmi Crop Science IPO allotment and listing dates

The company is expected to finalise the IPO share allotment status on Thursday, December 12. The refunds and credit of shares to Demat accounts will be initiated on December 13.

The company has proposed to list its shares on the NSE SME platform, Emerge, on December 16.

Dhanlaxmi Crop Science to use IPO proceeds for working capital needs

The company has proposed to utilise the IPO proceeds of ₹20.05 crore to fund working capital requirements. The company funds the working capital requirement through its equity and internal accruals as well as borrowings from banks, financial institutions and non-banking financial companies (NBFCs).

The company's working capital requirement has increased from ₹13.62 crore in FY 2021-22 to ₹15.61 crore in FY 2023-24 due to an increase in revenue from operations, as per its RHP.

About Dhanlaxmi Crop Science Limited

Dhanlaxmi Crop Science Limited develops, processes and sells seeds of various field crops and vegetables. As of September 30, 2024, Dhanlaxmi Crop Science produced 24 field crops and vegetable seeds. It operates in five states.

The company’s revenue stood at ₹63.75 crore in FY 2023-24 against ₹46.64 crore in FY 2022-23. Its net profit increased to ₹4.65 crore in FY24 against ₹2.99 crore in FY23. The company’s net worth stood at ₹16.12 crore in FY24 as against ₹11.39 crore in the preceding fiscal.

In the September quarter of FY25, the company’s revenue stood at nearly ₹120 crore along with a net profit of ₹8.2 crore. The company’s net worth stood at ₹24.32 crore for the period under review.