Leo Dry Fruits and Spices shares hit 5% lower circuit after listing at nearly 31% premium on BSE SME

The Leo Dry Fruits stock opened the session at ₹68 apiece on the BSE, up 30.77% compared to its initial public offering (IPO) price of ₹52 apiece. Within minutes of the opening of the session, the share price dropped 5% to hit the lower circuit of ₹64.6 apiece due to profit taking.

Soon after listing, as many as 10.86 lakh shares changed hands on the stock exchange. The total trading value stood at ₹7.33 crore, while the company’s market capitalisation reached ₹115.58 crore.

As the minimum bid quantity to apply for the Leo Dry Fruits IPO was 2,000 shares, successful bidders who were allotted at least a single lot of shares in the primary issue would have been sitting on listing gains of ₹1,36,000 (₹68 x 2,000) as soon as the stock started trading in the secondary market.

The ₹25.12-crore Leo Dry Fruits IPO, which was open for bidding during January 1 to January 3, was oversubscribed almost 182 times during the three-day bidding period. The company had received bids for 59.25 crore shares compared with 32.6 lakh shares on offer.

Ahead of the launch of the IPO, Leo Dry Fruits and Spices had also raised ₹6.88 crore via its anchor investor round.

The board of directors at its meeting held on December 31 had finalised the allocation of 13.24 lakh shares to a total of six anchor investors at a price of ₹52 per share.

The company plans to utilise the net proceeds from the issue towards funding working capital requirements of the company, towards branding, advertisement and marketing activities and for general corporate purposes.

Leo Dry Fruits and Spices Trading is engaged in the manufacturing and trading of a variety of spices and dry fruits under the brand ‘VANDU’. It also makes and sells frozen and semi-fried products under the brand ‘FRYD’. Additionally, Leo Dry Fruits supplies whole and blended spices, roasted and flavoured dry fruits, ghee, seasonings, and other grocery items in various packaging sizes. The company's manufacturing unit is situated in Thane, Maharashtra.

The company had shown solid growth in the financial year 2023-24 compared with the previous year. However, for the first six months of financial year 2024-25 (ended September 2024), the numbers don’t paint a similar picture.

For the six-month ended September 2024, Leo Dry Fruits posted revenue of ₹17.9 crore and a profit after tax (PAT) of ₹1.87 crore.

For full FY24, revenue stood at ₹62.26 crore compared with ₹36.46 crore in FY23, while PAT stood at ₹6.63 crore in FY24 compared to ₹3.63 crore in FY23.