The much-anticipated Dhanlaxmi Crop Science IPO allotment is set to be finalized today, December 12, 2024. This Gujarat-based company, known for its expertise in agricultural seed production and distribution, opened its IPO for subscription from December 9 to December 11, 2024. Here’s everything you need to know about the IPO allotment status, subscription data, and the company’s profile.
Key Details of Dhanlaxmi Crop Science IPO
The Dhanlaxmi Crop Science IPO is a book-built issue with the following details:
- IPO Size: ₹23.80 crore, comprising a fresh issue of 43.28 lakh equity shares.
- Price Band: ₹52 to ₹55 per share.
- Subscription Period: December 9, 2024, to December 11, 2024.
- Lot Size: A minimum of 2,000 shares, requiring retail investors to invest at least ₹1,10,000. High Net-worth Investors (HNIs) must bid for at least two lots (4,000 shares), amounting to ₹2,20,000.
- Listing Details: Shares will be listed on the NSE SME platform with a tentative listing date of December 16, 2024.
How to Check Dhanlaxmi Crop Science IPO Allotment Status
Investors can check the IPO allotment status via the NSE portal or the official website of the registrar, Skyline Financial Services Pvt. Ltd. Below are the step-by-step instructions:
Checking Allotment Status on NSE
- Visit the NSE IPO Allotment Status Page.
- Select Equity under the “Issue Type” dropdown menu.
- Choose Dhanlaxmi Crop Science from the “Issue Name” list.
- Enter your IPO Application Number or PAN details.
- Complete the CAPTCHA verification.
- Click Search to view the allotment status.
Checking Allotment Status on Skyline Financial Services
- Go to the registrar’s website at Skyline Financial Services Pvt. Ltd.
- Navigate to the “Check Application Status” dropdown and select Dhanlaxmi Crop Science.
- Provide details such as DPID/Client ID, Application Number, or PAN based on your preference.
- Enter the requested information and click Search to access the allotment results.
Company Overview: Dhanlaxmi Crop Science Ltd
Founded in 2005, Dhanlaxmi Crop Science Ltd is a Gujarat-based company specializing in the production and distribution of premium agricultural seeds. With over 18 years of experience, the company caters to diverse agro-climatic regions across India.
Core Product Portfolio
The company offers seeds for 24 field crops and vegetables, including:
- Cotton (its flagship product and primary revenue driver)
- Wheat
- Maize
- Mustard
- Okra
Revenue Highlights
- Cotton seeds contributed significantly to the company’s profits, accounting for:
- 76.78% of the operating profit in FY 2024,
- 71.47% in FY 2023, and
- 64.73% in FY 2022.
This reliance underscores the company’s expertise in the cotton seed segment, which is critical to its growth strategy.
Dhanlaxmi Crop Science IPO Subscription Insights
The IPO witnessed overwhelming demand, with a subscription rate of 555.83 times the total shares on offer. Here’s a breakdown by investor category:
- Non-Institutional Investors (NIIs): Subscribed a staggering 1,241.27 times their allotted quota.
- Retail Investors: Participation soared, with subscriptions reaching 441.18 times their allocation.
- Qualified Institutional Buyers (QIBs): Subscribed 197.65 times, reflecting robust institutional interest.
Utilization of IPO Proceeds
The funds raised through the IPO will be utilized strategically for the following purposes:
- Working Capital Requirements: A significant portion will address the company’s working capital needs, given its intensive business model.
- IPO-Related Expenses: To cover costs associated with fundraising and regulatory compliance.
- General Corporate Purposes: To enhance overall business operations and ensure financial flexibility.
Investment Considerations
While the Dhanlaxmi Crop Science IPO has garnered strong interest, investing in SME IPOs comes with inherent risks. Potential investors should evaluate the following:
- Market Risks: SME stocks can be volatile and may not be suitable for risk-averse investors.
- Long-Term Viability: Assess the company’s financial health and growth potential.
- Due Diligence: Always consult with a certified financial advisor before making investment decisions.
Conclusion
The Dhanlaxmi Crop Science IPO marks a significant milestone for the company and reflects the strong demand for high-quality agricultural inputs in India. With its robust business model, diversified product portfolio, and strategic use of IPO proceeds, the company is well-positioned to drive growth in the agricultural sector.
As investors await the listing on December 16, the overwhelming subscription numbers highlight the market’s confidence in the company’s prospects. However, prudent due diligence and a clear understanding of the risks involved remain key to making informed investment decisions.
Disclaimer: Investments in IPOs involve market risks. Please evaluate your risk tolerance and consult a professional advisor before investing.