The Gujarat-based seed manufacturer, Dhanlaxmi Crop Science, opened its public issue on December 9 and has been attracting significant investor demand . On the first day of the bidding, this NSE SME issue was subscribed over 17 times the offer size.

Let’s take a closer look at what’s driving the excitement, and other key details of the Dhanlaxmi Crop Science IPO.

IPO Subscribed 17.24 Times on Day 1

Dhanlaxmi Crop Science IPO on the first day of bidding on December 9 saw an overwhelming response from investors. The NSE SME IPO which comprises 43.28 lakh shares priced between Rs 52 and Rs 55 each, received a subscription of 17.24 times, with investors applying for a total of 5.46 crore shares.

The offer size was just 31.7 lakh shares, which means that the demand far exceeded the supply.

Key Highlights of the Subscription

The retail portion of the Dhanlaxmi Crop Science IPO was booked 31.33 times, highlighting a strong demand from small investors. The Non-Institutional Investors (NIIs) portion of the public issue was subscribed 13.88 times. In the Qualified Institutional Buyers (QIBs), the investors showed cautious interest, subscribing 1.13 times their allocated share portion.

Allotment Status

The IPO allotment will be finalised on December 12, after which the refunds and shares will be credited to Demat accounts on December 13. The basis of the allotment is the key factor that needs to be finalised upfront. This will be done on December 12.

GMP

As per recent trends, the grey market premium (GMP) for Dhanlaxmi Crop Science IPO as of 9:40 AM IST stands at Rs 28 per share on December 10, pointing out that the shares are trading at almost 50.91 per cent.

Listing

The shares Dhanlaxmi Crop Science IPO will be listed on the NSE’s SME platform on December 16.

Fund Utilisation

Through this public offering, the company plans to raise Rs 23.8 crore. The funds secured through this issue will be utilised by the company as follows:

A significant portion of the funds will be directed towards the working capital for financing capital requirements.

Furthermore, another portion of the funds will be used for general corporate purposes, following further expansion of the company’s operations and product offerings.

Anchor Investors

Prior to the IPO opening, Dhanlaxmi Crop Science received Rs 6.37 crore from five prominent anchor investors which included Vikasa India EIF I Fund, Eminence Global Fund, Abundantia Capital VCC.

Financial Highlights

In the fiscal year 2022-23 the company reported a revenue of Rs 46.64 crore, which later in the next fiscal year 2023-24 surged to Rs 63 crore.

On a similar note, the net profit also jumped from Rs 2.99 crore in FY 2022-23 to Rs 4.65 crore in FY 2023-24.

In FY25’s first quarter, the company reported a revenue of Rs 120 crore, with a net profit of Rs 8.2 crore.

About the company

Dhanlaxmi Crop Science specialises in a diverse range of products and produces seeds for 24 different crops, including cotton, wheat, maize, and various vegetables such as okra and groundnut.

As of September 2024, the company had produced 725MT of raw seeds, consisting of both hybrid and open-pollinated varieties. The biggest contributor to the company’s revenue are cotton seeds, contributing 77 per cent to FY24 revenue and 96 per cent in FY25’s first quarter.