Dhanlaxmi Crop Science’s initial public offering has attracted strong interest from investors on the first day of bidding, December 9, getting subscribed 17.24 times with investors buying 5.46 crore equity shares against the offer size of 31.7 lakh shares.
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The seeds producer is planning to mobilise Rs 23.8 crore through an initial share sale of 43.28 lakh shares at the upper end of price band of Rs 52-55 per share.
Retail investors were at the forefront to boost subscription numbers, bidding 31.33 times the reserved portion, followed by non-institutional investors who have bought 13.88 times the allotted quota. Qualified institutional buyers also participated in the offer on the first day, picking 1.13 times the portion set aside for them.
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Dhanlaxmi Crop Science on December 6 raised Rs 6.37 crore via anchor book at a price of Rs 55 per share. The company has allocated 11.58 lakh equity shares to five institutional investors including Vikasa India EIF I Fund, Eminence Global Fund, and Abudantia Capital.
The Gujarat-based company intends to utilise net fresh issue proceeds (excluding offer expenses) for working capital requirements, and general corporate purposes.
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With operations in five states, Dhanlaxmi Crop produced seeds for 24 different field crops and vegetables including cotton, wheat, bajra, maize, gram, okra, green gram, soyabean, mustard, groundnut, and castor. In September 2024, it produced 725MT of raw seeds, comprising hybrids and open pollinated variety of field crops and vegetables. The sale of cotton seeds contributed the maximum to revenue at 77 percent in FY24 and 96 percent in the first of FY25.
The public issue will close on December 11.
