Leo Dry Fruits and Spices IPO : Date GMP, Price & Analysis

Leo Dry Fruits and Spices IPO-Complete Overview

Leo Dry Fruits and Spices IPO under the SME IPO category is a book-built issue of Rs.25.12 crore (48.30 lac Shares) by Leo Dry Fruits and Spices Trading Limited, incorporated in November 2019. The company sells a variety of spices and dry fruits under the brand name of VANDU along with frozen and semi-fried products under FRYD. It supplies whole and blended spices, roasted and flavored dry fruits, ghee, seasonings, and other grocery items in sizes ranging from small packets to bulk packing.

Two verticals of operation are as follows: 

The Trading of Products 

• The Manufacturing and Processing of Spices

• The manufacturing unit of the company is situated in Thane, Maharastra.

Three segments operate under the company: B2B, B2C, and D2C. 

• The wholesaling of whole spices and dry fruits in bulk to traders for unbranded resale is classified as the B2B segment. 

• In the B2C segment, the company sells its products as whole spices, blended spices, dry fruits, and groceries under VANDU through distributors, super stockists, e-commerce platforms like Amazon and Flipkart, and its website.

• The D2C channel now sells to the end customer directly through its website along with online channel partners such as Amazon, Flipkart, etc.

 

Leo IPO Overview

This Leo Dry Fruits and Spices Trading Ltd IPO date is 01 January, and its ‘initial public offering’ will end on 03 January 2025. 

The Rs.25.12 crore new SME IPO comprises a wholly fresh issue of 48.30 lac Shares.

This upcoming IPO date is on 01 January 2025. The Leo Dry Fruits and Spices IPO Price is Rs.51 to Rs.52 for each Share. 

The expected IPO listing date is Wednesday, 08 January 2025, and listing at BSE and SME.

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

Company Financial

The company’s revenue grew by 71% and PAT increased by 83% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in lac)

 

Business-wise Revenue Breakdown  

(Amount in lac)

 

Product-wise Revenue Breakdown  

(Amount in lac)

 

Segment-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:

• Financing the business's operating capital needs.

• Marketing, advertising, and branding initiatives.

• General corporate purposes.

 

Peers of Leo Dry Fruits and Spices IPO Ltd.

 

Note:-

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

Evaluation

The Leo Dry Fruits IPO share price is Rs.51 to Rs.52 for each Share.
Evaluation of P/E Ratio

Considering the FY ended 31 March 2024 with an EPS of Rs.5.21 from the last year, the resulting P/E ratio is 9.98x.

Considering the weighted EPS of Rs.3.96 for the last three years, the P/E ratio is 13.13x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 71.10x.

 

In simple words, the P/E ratio of this IPO (9.98x), compared with the industry’s average P/E of 71.10x, 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

• Exertion is exerted above the young and capable promoters with professional management. 

• A diverse product catalog was established.

• Indigenous manufacturing and processing capabilities. 

• Increased brand equity over the years.

• Widespread customer base across different segments.

 

IPO’s Weaknesses

• Reliance on key personnel and promoters: The company very much relies on the initiatives of its promoters, senior management, and other key personnel in the success of the Company itself. The inability to retain or replace any of these individuals may adversely affect the business operations.

• Market Variability and Liquidity Risks: This is the first public issue of the company, which can't assure active or constant trading on its equity shares. The market price of a share might have drastic fluctuations from both internal and external factors.

• Compliance with Laws and Regulations: Failure to comply with stringent food and consumer goods as well as health and environmental regulations would result in an increase in liabilities and capital expenditures which could also endanger the financial position of the company.

• Natural Calamities and Epidemics: Capacitating disasters such as floods or health calamities like contagious diseases may result in hampering operations, loss in economy and profitability to the business.

• Geographical and Revenue Dependence: A significant part of the revenues of the company comes from Maharashtra. There might not be scope for growth if it is not extended to other geographies.

 

Leo Dry Fruits and Spices IPO GMP

Leo Dry Fruits and Spices IPO GMP today is Rs.0 as of 28 December 2024. With a price of Rs.52, the estimated Leo Dry Fruits and Spices IPO listing price is Rs.52 while writing this information.

IPO Timetable (Tentative)

The IPO opening date is January 01, with allotment on January 06, refund initiation on January 07, and listing on January 08, 2025.

Leo Dry Fruits IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 48,30,000 Shares (Rs.25.12 Cr).

Leo Dry Fruits and Spices Limited IPO Lot Details 

The Leo IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.104000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.208000.

 

IPO Reservation (% of Net Issue)

Promoters And Management of Leo Dry Fruits and Spices Ltd.

• Mr. Kaushik Sobhagchand Shah

• Mr. Ketan Sobhagchand Shah

• Mr. Parth Ashish Mehta.
  
  

 

IPO Lead Managers

Shreni Shares Limited.

Dividend Policy

The company has not paid dividends in the last three FYs.

Conclusion

Here is an opportunity in an emerging SME offering diversified products and already pockets strong geography in Maharashtra i.e. Leo Dry Fruits and Spices IPO. The offered IPO looks reasonably valued with competitive pricing and a much lower P/E ratio than industry peers. Nevertheless, it carries a few risks such as dependence on key personnel and revenue geographical dependence. This makes it a promising option for investors to explore within the food and spices sector.

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.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

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