Dhanlaxmi Crop Science Limited is set to launch its initial public offering (IPO) from December 9 to December 11, 2024, with a price band of ₹52 to ₹55 per share. The company aims to raise approximately ₹23.80 crores through this offering, which consists entirely of a fresh issue of shares. Established in 2005, Dhanlaxmi Crop Science focuses on developing, producing, and selling seeds for various field crops and vegetables, leveraging advanced biotechnology and traditional breeding techniques.
₹50
₹55
₹104.50
Expert Opinions
Market sentiment for the Dhanlaxmi Crop Science IPO is generally positive, reflecting an increasing interest in the agricultural sector, particularly in seed production. Company strengths include a solid revenue growth trajectory, with FY24 revenue reaching ₹63.75 crore, up from ₹46.64 crore in FY23, and a profit after tax of ₹4.65 crore, demonstrating effective operational management. However, risks and challenges include intense competition in the seed industry and potential regulatory changes that could impact agricultural practices.
The valuation analysis places the IPO price between ₹52 and ₹55 per share, which appears reasonable given the company’s earnings per share of ₹3.88 and a return on net worth of 28.87%. From a long-term investment perspective, Dhanlaxmi Crop Science is well-positioned to benefit from the growing demand for high-quality seeds as agriculture modernizes in India, making this IPO relevant for investors focused on sustainable agricultural growth.
Investor Considerations
Investors considering the Dhanlaxmi Crop Science IPO should analyze several critical factors. Company performance and fundamentals reflect a strong growth trajectory, with revenue increasing from ₹46.64 crore in FY23 to ₹63.75 crore in FY24, alongside a profit after tax of ₹4.65 crore, indicating effective management and operational efficiency. The sector outlook for the agricultural industry is favorable, driven by rising demand for high-quality seeds amid increasing agricultural productivity needs.
The IPO valuation is set between ₹52 and ₹55 per share, which is reasonable given the company’s earnings per share of ₹3.88 and a return on net worth of 28.87%. Growth prospects are promising, as Dhanlaxmi aims to expand its market presence and enhance product offerings in the competitive seed market. However, risk factors include competition from established players and potential regulatory changes affecting agricultural practices. A long-term investment horizon is advisable as the company is well-positioned to capitalize on the evolving agricultural landscape in India.
| Date | GMP | Trend |
|---|---|---|
| 15 Dec 2024 13.24 | ₹50 | --- |
| 14 Dec 2024 17.24 | ₹50 | Up |
| 13 Dec 2024 11.19 | ₹35 | --- |
| 12 Dec 2024 13.13 | ₹35 | --- |
| 11 Dec 2024 11.01 | ₹35 | Up |
| 10 Dec 2024 11.15 | ₹25 | --- |
| 09 Dec 2024 16.45 | ₹25 | --- |
| 06 Dec 2024 10.48 | ₹25 | --- |
| 05 Dec 2024 10.55 | ₹25 | Up |
| 04 Dec 2024 13.03 | ₹00 | --- |
FAQs
The Grey Market Premium showed excellent accuracy in predicting Dhanlaxmi Crop Science’s listing performance. The GMP of ₹50 predicted a premium of 90.91% over the issue price, and the stock delivered a very similar gain of 90%. With a minimal prediction error of just 0.48%, the GMP effectively captured both the direction and magnitude of the listing gains, proving to be a highly reliable indicator in this case.
Dhanlaxmi Crop Science IPO Current GMP is ₹50.
Dhanlaxmi Crop Science IPO Expected Returns is 90.91%.
Dhanlaxmi Crop Science IPO estimated listing price is ₹105.