Dhanlaxmi Crop Science IPO Subscribed Over 550 Times On Final Day; Check GMP

The initial public offering (IPO) of Dhanlaxmi Crop Science Ltd. which opened for bidding on Dec. 9 was subscribed more than 550 times on the final day of subscription on Wednesday.

The SME IPO was fully subscribed on day 1, led by demand from retail investors. Dhanlaxmi Crop Science IPO was an entirely fresh issue of 43.28 lakh shares. The company aims to raise Rs 23.8 crore through the IPO.

Here's all you need to know about Dhanlaxmi Crop Science IPO:

The IPO price band was fixed at Rs 52 to Rs 55 per share. Retail investors needed to apply for at least a single lot of 2000 shares or multiples thereof. The minimum investment for retail investors was Rs 1,10,000 per application.

Bigshare Services Pvt. Ltd. is the registrar for the Dhanlaxmi Crop Science IPO. Meanwhile, Finshore Management Services Ltd. is the book-running lead manager of the issue and MNM Stock Broking is its market maker.

The share allotment status is expected to be finalised on Dec. 12. The company will initiate credit of shares to the Demat accounts and refunds on Dec. 13.

Dhanlaxmi Crop Science shares are likely to be listed on the NSE SME platform Emerge on Dec. 16.

The IPO was subscribed 555.83 times as of 6:19 p.m. on Wednesday, as per market tracking site Chittorgarh:

• Qualified Institutions: 197.65 times

• Non-Institutional Buyers: 1,241.27 times

• Retail Investors: 441.18 times

Dhanlaxmi Crop Science IPO GMP (grey market premium) stood at Rs 37 as of 3:57 p.m. on Dec. 11, according to InvestorGain. This indicates a potential listing gain of 67.27%, with a listing price of Rs 92 per share.

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

Dhanlaxmi Crop Science Ltd. is a technology-driven company that develops, produces, processes and sells seeds for an array of field crops and vegetables.

The company combines traditional breeding methods with advanced biotechnological tools to create hybrid and open-pollinated seed varieties. These varieties are designed to deliver higher yields, improved product quality, and enhanced resistance to pests and diseases compared to naturally occurring varieties.

Use Of Proceeds

Dhanlaxmi Crop Science will use the proceeds from the IPO to meet its working capital needs, meet issue expenses and for general corporate purposes.

Financials

Dhanlaxmi Crop Science Ltd. reported a revenue of Rs 120 crore in the quarter ended Sep. 30, 2024. Its net profit during the period stood at Rs 8.2 crore.

In FY24, the company’s revenue rose 36.67% to Rs 63.71 crore from Rs 46.61 crore in the preceding fiscal. Its net profit in FY24 increased 55.35% year-on-year to Rs 4.65 crore from Rs 3 crore in FY23.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.