Dhanlaxmi Crop Science IPO: Price, Date, GMP, Allotment

Dhanlaxmi Crop Science IPO-Complete Overview

Dhanlaxmi Crop Science IPO under the SME IPO category is a book-built issue of Rs.23.80 crore by Dhanlaxmi Crop Science Limited, incorporated in 2005. This technology-driven seed company is involved in, developing, producing, processing, and marketing seeds for multiple field crops and vegetables. The integration of traditional breeding concepts along with biotechnological tools centers on the improved production of hybrid and open-pollinated varieties of field crops and vegetables.

A company that, at the end of March 31, 2024, produced seeds for 24 different crops of vegetables and operated in 5 states in India. Cotton seed sales contribute majorly to the operating profit, contributing 76.78%, 71.47%, and 64.73% from the operating profit in FY 2024, FY 2023, and FY 2022, respectively.

 

The Products Portfolio includes wheat, Groundnut, Onion, Black Gram, Field Crop and Cotton Vegetable Seeds, Cumin, Guar, Bajra, Maize, Coriander, Gram, Okra, Green Gram, SSG, Soyabean, Red Gram, Milky, Mustard, Castor, Sesame, Jowar, Green Pea, Multifeed, etc.

Dhanlaxmi Crop Science IPO Overview

This Dhanlaxmi Crop Science IPO date is 09 December 2024, and its ‘initial public offering’ will end on 11 December 2024. 

The Rs.23.80 crore new SME IPO comprises a wholly fresh issue of 43.28 lac Shares.

This upcoming IPO date is on December 09, 2024. Dhanlaxmi Crop Science IPO Price is Rs.52 to Rs.55 for each Share. 

The expected IPO listing date is Monday, 16 December 2024, and listing at NSE and SME.

To open a demat account and apply for the IPO, Click Here.

Company Financial

The company’s revenue grew by 37% and PAT increased by 55% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

Cash Flows

The cash flows for various activities is shown below:

(Amount in lac)

Product-wise Revenue Breakdown  

(Amount in lac)

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• To fulfill the requirements for working capital.

• To cover the costs of the issue.

• General corporate purposes.

Peers of Dhanlaxmi Crop Science IPO Ltd.

 

Note:- The basic EPS of the peers is for the financial year ended on 31 March 2024.

Evaluation

The Dhanlaxmi Crop Science Limited IPO share price is Rs.52 to Rs.55 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.3.88 from the last year, the resulting P/E ratio is 14.17x.

Considering the weighted EPS of Rs.2.95 for the last three years, the P/E ratio is 18.64x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 21.03x.

In simple words, the P/E ratio of this IPO (14.17x), compared with the industry’s average P/E of 21.03x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths

• Seed process integrated with warehouse facility on a single premise.

• Well-diversified products with quality.

• Research & Development capabilities.

• Well-established brand.

• Satisfied customers and revenue from long-time relationships with customers.

• Experienced promoter and management expertise.

• Proven robust financial performance.

 

IPO’s Weaknesses

• The company relies heavily on the sale of cotton seeds, and product concentration poses hazards to the company that could have a negative and significant impact on it.

• A failure to create new and improved products could hurt its business, as it relies on the success of its research and development efforts.

• A significant amount of its income has been reliant on a small number of clients. The company's operations and profitability would be significantly impacted if the company lost any one or more of its main clients.

• The promoters typically pay less to acquire equity shares than the issue price.
  
  

Dhanlaxmi Crop Science IPO GMP

Dhanlaxmi Crop Science IPO GMP today is NA when writing this information.

IPO Timetable (Tentative)

The IPO opening date is from December 09 to December 11, 2024, with allotment on December 12, refund initiation on December 13, and listing on December 16, 2024.

Dhanlaxmi Crop Science IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 4,328,000 Shares (Rs.23.80 Cr).

Dhanlaxmi Crop Science IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.1,10,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.2,20,000.

IPO Reservation (% of Net Issue)

 

Promoters And Management of Dhanlaxmi Crop Science IPO Ltd.

• Mr. Kamleshkumar Jayantilal Patel.

• Mr. Alpeshbhai Jayantibhai Patel.

• Mr. Meet Kamleshkumar Patel.
  
  

IPO Lead Managers

• Finshore Management Services Limited.
  
  

Dividend Policy

The company has not paid dividends since its incorporation.

Conclusion

Dhanlaxmi Crop IPO offers investors an opportunity to invest in a growing seed company with a strong financial track record and diversified product portfolio. While the IPO is attractively priced compared to industry averages, it carries risks like over-reliance on cotton seeds and a few major clients. With a focus on R&D and expansion, the company shows promise but requires careful evaluation of its strengths and weaknesses. Investors should consider their risk appetite and long-term goals before investing.

Click Here To Stay Updated With The Upcoming IPOs.

DISCLAIMER: NOT a buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always discuss with an eligible financial advisor before investing.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Want to start Your Journey in stock market trading and investment? Join our Stock Market Class to become beginner to expert trader! We cover everything from the basics of trading to advanced strategies for picking stocks. Plus, we're offering a special discount for women and students. Don't miss out - enroll now and kickstart your path to success in the stock market!

Open a world of Stock Market by Opening a Demat Account with your favourite Broking firm & Get a trading Strategy worth Rs.15,000!

Click here to open a Free Demat Account & Start Investing Now

Thank You for reading this blog.
Hope you loved the IPO analysis.
Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock market.