Dhanlaxmi Crop Science shares hit 5% upper circuit after listing at 90% premium to IPO price

Seed company Dhanlaxmi Crop Science Ltd made a robust debut on the NSE SME platform with its shares listing at a premium of 90%.

According to exchange data, shares of the company listed at a premium of 90% at ₹104.50 per share against the issue size of ₹55 per share.

After the listing, the stock jumped 5% to hit the upper circuit limit at ₹109.70 apiece on the NSE on heavy buying by investors.

More than 9.94 lakh shares traded on the exchange in early deals. The traded value was ₹10.65 crore.

The market valuation of the company stood at ₹179 crore.

At the listing price of ₹104.50, the value of a single lot of the company’s shares allotted to an IPO investor is ₹2,09,000 (₹104.50 x 2,000). Thus investors who bagged shares in the share allotment would have made gains of around ₹99,000 per lot against the minimum investment of ₹1,10,000 per lot (₹55 x 2,000).

Dhanlaxmi Crop Science raises ₹23.8 crore through IPO

Seed company Dhanlaxmi Crop Science Ltd raised ₹23.8 crore through its initial public offering last week.

The IPO was open for subscription from December 9 to December 11.

The public offer received robust bids from investors. The NSE SME issue was subscribed 555.9 times on strong demand from retail and Non-Institutional Investors (NIIs).

According to exchange data, the ₹23.8-crore public offer received bids for more than 164.1 crore shares against 29.52 lakh shares on offer for subscription.

Retail individual investors (RIIs) placed applications for more than 67.14 crore shares against a quota of 15.22 lakh shares for them. The retail quota was booked 441.17 times. Non-institutional investors moved bids for 81.69 crore shares compared to 6.58 lakh shares on offer to them. The NII category was subscribed more than 1,241 times.

The Qualified institutional investors applied for 15.25 crore equity shares compared to 7.72 lakh shares on offer to them. The QIB portion was oversubscribed more than 197 times.

Dhanlaxmi Crop Science raised ₹6.37 crore from anchor investors ahead of the launch of the IPO for public investors. The company allotted 11.58 lakh shares at ₹55 per share to five fund schemes.

Dhanlaxmi to use IPO proceeds for working capital needs

Dhanlaxmi Crop Science is a technology-driven seeds firm. It develops, produces and sells seeds such as hybrid and open-pollinated varieties for field crops and vegetables.

It has proposed to use the IPO funds of ₹20.05 crore to fund the working capital needs. The rest of the money would be used for general corporate purposes.

According to its RHP, the company funds the working capital requirement through its equity/internal accruals, borrowings from banks, financial institutions, non-banking financial companies and others.