Dhanlaxmi Crop Science Limited is coming up with an IPO with a fresh issue of 43,28,000 shares worth INR 23.80 crores. The company aims to meet working capital requirements and general corporate purposes. 

Dhanlaxmi Crop Science IPO – Important Dates 

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Dhanlaxmi Crop Science Limited IPO – Company Profile 

Dhanlaxmi Crop Science Limited, with 18+ years of expertise, develops and sells high-yield, pest-resistant hybrid and open-pollinated seeds for diverse crops. It integrates traditional breeding and biotechnology to suit India’s varied agro-climatic conditions. 

With operations in five states, the company produces seeds for 24 crops, led by cotton seeds. Its R&D combines traditional breeding and biotechnology, fostering a diverse germplasm and extensive product portfolio. 

With a strong presence in four states, Dhanlaxmi Crop Science Limited produces hybrid and OPV seeds, primarily cotton. It is supported by advanced R&D, 1,185 dealers, efficient processing and storage facilities, and growing non-cotton crop sales. 

Dhanlaxmi Crop Science Ltd IPO Fundamental Analysis 

Dhanlaxmi Crop Science Limited’s financial analysis reveals a mixed performance. Revenue growth reflects business expansion, supported by improved profitability, rising EPS, stronger RoNW, efficient inventory management, increased assets, reduced debt reliance, and slightly weakened liquidity. 

• Revenue Trend: The revenue increased from ₹3,543.06 lakhs in March 2022 to ₹4,661.07 lakhs in March 2023. The revenue for the current year’s 6-month period ending September 2024 is INR 11,995.01 lakhs. 
• Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing. 
• Profitability: The profit after tax (PAT) has significantly increased from ₹58.28 lakhs in March 2022 to ₹820.81 lakhs by September 2024. This improvement in profitability could be a source of confidence among investors. 
• Earnings per Share (EPS): The diluted EPS has risen from ₹1.09 in March 2022 to ₹6.84 by March 2024, reflecting higher earnings per share for investors. =
• Return on Net Worth (RoNW): The RoNW has risen from 9.44% to 33.75%, indicating an increase in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations. 

• Inventory Turnover Ratio: There’s a significant increase in the Inventory Turnover   Ratio, which might suggest faster sales or efficient inventory management. 

Check out the other upcoming IPOs this month:

Dhanlaxmi Crop Science IPO Financial Analysis 

Dhanlaxmi Crop Science Limited IPO Peer Comparison 

Dhanlaxmi Crop Science Limited demonstrates a strong market presence alongside competitors Mangalam Seeds and Upsurge Seeds of Agriculture. It showcases competitive valuations, profitability metrics, and industry positioning focused on growth and shareholder returns. 

Dhanlaxmi Crop Science Ltd IPO Objective 

The main objective of Dhanlaxmi Crop Science Limited is to meet working capital requirements. 

1. Working Capital Requirement: The company intends to utilize INR 20.06 crores from net proceeds for working capital needs, driven by growing revenue, increased demand for cotton seeds, and future orders, complemented by internal accruals and borrowings. 

2. General Corporate Purpose: The company will deploy funds for general corporate purposes, including strategic initiatives, brand building, marketing, operational expenses, debt repayment, investments, working capital needs, business development, and unforeseen contingencies. 

Dhanlaxmi Crop Science IPO Risks And Challenges 

Dhanlaxmi Crop Science Limited’s risks include exposure to legal proceedings, reliance on cotton seed sales amidst market fluctuations, and the need for timely product development, which could adversely impact financial conditions and long-term prospects. 

• The company, its directors, promoters, and group companies are involved in various legal proceedings, which could potentially adversely affect its reputation, financial condition, and operations. The outcomes are uncertain, and the company may incur significant expenses. 

• The company’s reliance on cotton seed sales exposes it to risks such as market fluctuations, competition, regulatory changes, production disruptions, and evolving consumer preferences, which could impact its business, financial condition, and prospects. 

• The company’s success relies on the timely development of high-quality products, which requires significant research and development investments. Delays or innovation failure could adversely impact its business, financial condition, and long-term prospects. 

Dhanlaxmi Crop Science Ltd IPO – Industry & Market Potential 

The Indian agricultural sector is projected to reach $24 billion by 2025, with significant foodgrain and horticulture production growth. The food processing industry attracted $12.58 billion in FDI from 2000 to 2024, highlighting sectoral growth. 

India’s agriculture sector is set for growth with a US$ 9 billion investment in fisheries under PM Matsya Sampada Yojana, targeting 220 lakh tonnes of fish production by 2024-25. The PMKSY scheme allocates Rs. 4,600 crore until 2026. 

India’s agriculture contributes 18.3% to GDP, and exports reached US$50.47 billion in FY23. Major crops include rice, wheat, and horticulture, and exports like rice, marine products, and spices drive growth. FDI in agriculture is US$3.08 billion. 

Dhanlaxmi Crop Science Limited IPO – Type of Offer 

Dhanlaxmi Crop Science Limited is coming up with an IPO with a fresh issue of 43,28,000 shares worth INR 23.80 crores. The company aims to meet working capital requirements and general corporate purposes. 

Dhanlaxmi Crop Science IPO Offer Size 

The offer size of Dhanlaxmi Crop Science Limited is INR 23.80 crores, consisting of a fresh issue of 43,28,000 shares. The company aims to meet working capital requirements and general corporate purposes. 

Dhanlaxmi Crop Science Limited IPO Allotment Structure 

Dhanlaxmi Crop Science Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 192,000 shares are reserved for market makers. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 192,000 shares, are reserved for market makers. 

Read more about Dhanlaxmi Crop Science IPO Allotment Status

How to apply for Dhanlaxmi Crop Science IPO?

To apply for the Dhanlaxmi Crop Science Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Dhanlaxmi Crop Science Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Dhanlaxmi Crop Science Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

Read more about Dhanlaxmi Crop Science IPO Day 1 Subscription Status

How do you check Dhanlaxmi Crop Science IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Dhanlaxmi Crop Science Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Dhanlaxmi Crop Science Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Dhanlaxmi Crop Science Limited IPO:

● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Dhanlaxmi Crop Science Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

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Dhanlaxmi Crop Science Ltd IPO Offer Registrar

The registrar for the Dhanlaxmi Crop Science Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly. 

Contact information for the registrar: 

BIGSHARE SERVICES PRIVATE LIMITED

Office No S6-2, 6th Floor, 

Pinnacle Business Park, Next to Ahura Centre, 

Mahakali Caves Road, 

Andheri (East), Mumbai – 400093

Telephone: 022-62638200

E-mail: [email protected];

Website: www.bigshareonline.com 

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Dhanlaxmi Crop Science IPO – FAQs