Dhanlaxmi Crop Science is a technology-driven seeds company that develops, produces, processes, and sells seeds for various field crops and vegetables. Dhanlaxmi Crop Science IPO intends to raise Rs 23.80 crores. The issue is entirely a fresh issue of shares.

About Dhanlaxmi Crop Science

• Company is a technology driven seeds company that develops, produces, processes and sells seeds for a range of field crops and vegetables, have more than 18 years of experience in the Indian seeds industry.
• They integrate traditional breeding techniques with biotechnology tools and seek to produce hybrid and open pollinated variety field crops and vegetable seeds that deliver higher yields, enhanced product quality and higher levels of pest and disease tolerance over naturally occurring varieties.
• Their seeds are suitable for varying agroclimatic conditions, such as water availability, crop duration and soil attributes, across different geographic regions in India.
• They produced, as of September 30, 2024, seeds for 24 different field crops and vegetables and have operations in 5 states across India.
• (i) Mr. Kamleshkumar Jayantilal Patel, (ii) Mr. Alpeshbhai Jayantibhai Patel and (iii) Mr. Meet Kamleshkumar Patel are the promoters of company.

Financials: Dhanlaxmi Crop Science IPO

Anchor: Dhanlaxmi Crop Science IPO

Dhanlaxmi Crop Science IPO : Salient Points

• The sale of cotton seeds contributes the majority of their revenue from operations, contributing 95.64% of revenue from operations in September 30, 2024.
• Their product portfolio includes field crop and vegetable seeds for Cotton, Wheat, Cumin, Bajra, Maize, Gram, Okra, Green Gram, SSG, Soyabean, Milky, Mustard, Groundnut, Black Gram, Guar, Castor, Sesame, Jowar, Coriander, Red Gram, Green Pea, Multifeed, Onion etc.
• They are a technology driven seeds company. As of September 30, 2024, Company had filed a total of five applications under the PPV & FR Act, including three for cotton, one for wheat and one for green gram. As of September 30, 2024, Company had received the following certificates of registration under the PPV & FR Act: Cotton hybrids, ZCH-511, 25D51 and 25D55 and their parents. Two applications of Company are in the testing stage, the final stage prior to certification

• Peers

• Debt levels are reasonable.
• PE 10.9x (annualized) ; 10.1 x ; PE Fy24: 19x
• I intend to apply in Dhanlaxmi Crop Science IPO. Company has shown good growth in sales in six months and on that basis looks favorably placed wrt peers. On the flip side the last SME IPO in Seeds sector Vishwas Agri Seeds IPO was priced at  ₹86 per share but listed slightly below the IPO price and currently trades at Rs. 73.  
• GMP as reported on social media is around Rs. 28(50%).
• Lead Manager Finshore has an average to fair record.
• SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
• This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.