Dhanlaxmi Crop Science
Book Building issueSMENSE₹23.80 Cr issue
+90.00%
Listing gain over issue price
Issue size
₹23.80 Cr
1 lot at cut-off
₹1,10,000
Lot size
2,000shares
Open
09 Dec 2024
Close
11 Dec 2024
Allotment
12 Dec 2024
Listing
16 Dec 2024
Listing performance
Issue price
₹55
Listed at
₹104.50
Listing-day close
₹109.70
Latest price
₹27.20
Close on 23 Oct 2026
Listing gain
+90.00%
Return since issue
-50.55%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 09 Dec 2024 – 11 Dec 2024
- Listing date
- 16 Dec 2024
- Face value
- ₹10 per share
- Issue price
- ₹55 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹23.80 Cr
- Market cap at offer price
- ₹89.80 Cr
- Promoter holding
- 99.48% → 73.11% pre-issue → post-issue
- ISIN
- INE0V9V01010
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Finshore Management Services Ltd.
- Registered office
- Survey No.24, Opp.Arts and Commence College, Shamlaji High Way, N.H.No.8, Motipura, Sabar Kantha, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 11,58,000 | — | — |
| Market maker | 2,18,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹55
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,10,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,20,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,90,000 |
| B-HNI (min) | 10 | 20,000 | ₹11,00,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
11,58,000
Anchor portion
₹6.37 Cr
at ₹55 per share
Valuation and performance
Valuation at offer price
₹55 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.88 | 10.05 |
| P/E (×) | 14.18 | 5.47 |
| Price to book (×) | 3.07 | — |
| Market cap | — | ₹89.80 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 28.87%
- ROCE
- 39.07%
- Debt / equity
- 0.06
- PAT margin
- 7.30%
- NAV per share
- ₹17.91
- Price to book
- 3.07
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Dhanlaxmi Crop Science
Dhanlaxmi Crop Science Limited was incorporated as Dhanlaxmi Agrichem Private Limited on November 28, 2005, and subsequently renamed Dhanlaxmi Crop Science Private Limited in 2007, before converting to a public limited company in September 2023. The company has more than 18 years of experience in the Indian seeds industry. It integrates traditional breeding techniques with biotechnology tools 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. As of September 30, 2024, the company produces seeds for 24 different field crops and vegetables and has operations in 5 states across India. Cotton seeds contribute the majority of revenue (95.64% as of September 30, 2024), with the product portfolio including seeds for Wheat, Cumin, Bajra, Maize, Gram, Okra, Green Gram, Soyabean, Mustard, Groundnut, Black Gram, Guar, Castor, Sesame, Jowar, Coriander, Red Gram, and others. The company's research and development includes conventional breeding programmes and innovative biotechnology tools.
Company Analysis
from RHPDhanlaxmi Crop Science Limited is a technology-driven seeds company that develops, produces, processes and sells hybrid and open pollinated variety seeds for field crops and vegetables across India.
Dhanlaxmi Crop Science Limited was incorporated as Dhanlaxmi Agrichem Private Limited on November 28, 2005, and subsequently renamed Dhanlaxmi Crop Science Private Limited in 2007, before converting to a public limited company in September 2023. The company has more than 18 years of experience in the Indian seeds industry. It integrates traditional breeding techniques with biotechnology tools 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. As of September 30, 2024, the company produces seeds for 24 different field crops and vegetables and has operations in 5 states across India. Cotton seeds contribute the majority of revenue (95.64% as of September 30, 2024), with the product portfolio including seeds for Wheat, Cumin, Bajra, Maize, Gram, Okra, Green Gram, Soyabean, Mustard, Groundnut, Black Gram, Guar, Castor, Sesame, Jowar, Coriander, Red Gram, and others. The company's research and development includes conventional breeding programmes and innovative biotechnology tools.
agriculture - seedsagricultural biotechnologycrop science
Objects of the Issue
- Working Capital Requirements Up to ₹2,005.77 lakhs p.24
- Issue Related Expenses [●] p.24
- General Corporate Expenses [●] p.24
- Funding incremental working capital requirements of our Company Up to ₹2,005.77 Lakhs p.47
- General corporate purposes Not to exceed 25% of the Gross Proceeds p.47
- Not explicitly stated in this section
Issue Structure
- Total Issue
- Up to 43,28,000 Equity Shares aggregating to ₹[●] Lakhs
- Fresh Issue
- Up to 43,28,000 Equity Shares aggregating to ₹[●] Lakhs
- Offer for Sale
- Nil
- Price Band
- [●] times to [●] times of face value
- Lot Size
- [●]
- Face Value
- ₹10/- per Equity Share
Business Model
The company develops and produces seeds through integration of traditional breeding techniques with biotechnology tools. It produces seeds through contractual arrangements with Seed Grower/Organizers during crop seasons, provides farm inputs and manages their activities. Revenue is generated through the sale of seeds for field crops and vegetables, primarily to authorized dealers and distributors who sell to farmers as end consumers. The company also conducts awareness initiatives including product demonstrations at farmer fields.
Business Segments
Development, production, processing and sale of cotton seeds
Development, production, processing and sale of seeds for field crops including 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 and vegetables
Development, production, and sale of cotton seed varieties including Advance, Agniveer, and Dhanvarsha
Recently launched paddy seed product to tap into the growing demand for high-yielding rice varieties across multiple states
Development, production and sale of hybrid and open pollinated cotton seeds with varieties including 25D39 BGII, 888 BGII, 25D33, 25D55, 25D51, Advance, D551, Dhanvarsha, and Prachand Pro
Development, production and sale of seeds for wheat, cumin, bajra, maize, gram, soyabean, mustard, groundnut, castor, and other field crops
Development, production and sale of vegetable seeds including okra, green gram, green pea, onion, and coriander
The company operates in a single segment of agriculture seeds, producing hybrid and open pollinated variety field crops and vegetable seeds.
Breeding, production, and distribution of agricultural seeds including hybrid cotton varieties and other crop seeds
SWOT Analysis
Strengths
- • 18+ years of experience in Indian seeds industry with integrated breeding and biotechnology approach(p.22)
- • Diversified product portfolio across 24 field crops and vegetables with multi-state operations(p.22)
- • Strong revenue growth trajectory with PAT of ₹820.81 lakhs in H1 FY2024-25(p.24)
- • Established distribution network of 1,185 authorized dealers/distributors across 4 states(p.35)
- • Experienced promoters with deep technical knowledge and successful execution track record(p.98)
- • Strong revenue growth trajectory and improving profitability metrics(p.91)
- • High return on net worth demonstrating efficient capital deployment(p.99)
- • Low debt-to-equity ratio indicating conservative capital structure(p.101)
- • Strong market position with established distribution network and customer relationships(p.98)
- • Quality assurance and regulatory compliance in seed certification(p.98)
- • Integrated seed processing with warehouse in single location(p.162)
- • Wide product portfolio across multiple field crops and vegetables(p.162)
- • Established R&D capabilities with dedicated infrastructure(p.162)
- • Strong brand recognition built over 20+ years(p.162)
- • Experienced promoter with 25+ years in seed business(p.163)
- • Robust financial performance with strong RONW(p.163)
- • ISO 9001:2015 certification for quality assurance(p.163)
- • PPV & FR registrations for proprietary hybrids(p.161)
- • Established regulatory compliance framework and licensing for seed production(p.172)
- • Access to recognized plant variety protection and intellectual property frameworks(p.177)
- • Multi-disciplinary management team with 20+ years of agricultural experience(p.197)
- • R&D leadership with PhD qualification and ICAR recognition(p.209)
- • Sub-licensee of Mahyco-Monsanto for Bollgard II technology(p.190)
- • Established presence in agriculture seeds with 18+ years of experience(p.267)
- • Diverse product portfolio across 24 crops with strong cotton seed dominance(p.267)
- • Strong financial performance with significant revenue growth(p.270)
- • Robust profitability with high RONW and healthy PAT margins(p.269)
- • Proprietary plant varieties with PPV&FR certifications(p.268)
- • Integration of breeding techniques with biotechnology tools(p.267)
- • Extensive distribution network across four states(p.268)
Weaknesses
- • Extreme dependency on cotton seeds, which contributed 95.64% of revenue in H1 FY2024-25(p.22)
- • Heavy reliance on single customer accounting for 76.76% of revenue in H1 FY2024-25(p.31)
- • Negative operating cash flow of ₹701.09 lakhs in H1 FY2024-25(p.32)
- • Significant working capital requirements with trade receivables of ₹2,939.23 lakhs representing 57.21% of total assets(p.46)
- • Production concentrated in single state of Gujarat with major sales from Telangana and Gujarat(p.35)
- • Substantial pending litigations with 127 criminal proceedings by company and 130 total legal cases(p.30)
- • Unsecured loan of ₹40.03 lakhs with ₹38.18 lakhs from related parties, callable at any time(p.44)
- • Promoters' average acquisition cost of ₹3.22-3.66 per share significantly below IPO price(p.32)
- • Significant dependence on key personnel for business operations(p.47)
- • High concentration of promoter ownership creating governance risk(p.48)
- • Vulnerability to employee misconduct and operational errors(p.48)
- • Risk of internal control failures and fraud(p.48)
- • Lack of quality accreditation may adversely affect business prospects(p.48)
- • Broad management discretion in fund deployment with no independent appraisal(p.47)
- • Heavy dependence on cotton seeds revenue(p.132)
- • Concentration of sales in limited geographic regions(p.165)
- • High customer concentration(p.165)
- • Dependence on authorized distributors(p.165)
- • Limited presence in high-value vegetable seeds segment(p.165)
- • Limited installed capacity relative to production needs(p.170)
- • Concentrated shareholding with promoters holding 76.70% pre-IPO(p.212)
- • High dependency on working capital financing with short-term borrowings of Rs. 702.66 Lakhs(p.226)
- • Trade receivables increased significantly to Rs. 2,939.23 Lakhs (as of Sept 30, 2024)(p.226)
- • Limited product diversification; primarily engaged in seed manufacturing and processing(p.229)
- • Minimal cash reserves of Rs. 23.09 Lakhs as of September 30, 2024(p.226)
- • Heavy dependence on cotton seeds for revenue generation(p.267)
- • Significant outstanding litigation related to collection of dues(p.281)
- • Concentration of operations across limited states affecting geographic risk(p.267)
- • High degree of dependence on limited customer base indicated by regional concentration(p.271)
- • Secured debt backed by personal guarantees of promoters(p.240)
- • Multiple pending dishonoured cheque cases from customers indicating collection/credit risk(p.294)
- • Significant outstanding litigations including seed quality disputes with state authorities(p.297)
- • Regulatory seed quality violations across multiple states(p.297)
- • Transgene purity non-compliance in seed products(p.297)
- • Outstanding amounts owed to creditors including small and medium enterprises(p.300)
Opportunities
- • Indian agricultural sector projected to reach US$24 billion by 2025 with strong growth drivers(p.22)
- • Rising adoption of advanced technologies including AI, blockchain, GIS, drones and remote sensing in agriculture(p.23)
- • Strong agricultural exports growth with US$35.18 billion in 2023-24(p.23)
- • FDI inflow in agriculture services of US$3.08 billion between 2000-2024(p.23)
- • Record horticulture output of 351.92 MT in 2022-23, up 4.74 MT YoY(p.22)
- • Strategy to diversify beyond cotton into wheat, maize, gram, pulses and other field crops(p.22)
- • Expansion strategy into untouched states across India beyond current 5-state presence(p.42)
- • Regional expansion into new high-potential markets like Andhra Pradesh, Karnataka, and Odisha(p.92)
- • Capacity expansion for flagship cotton seed products to meet growing demand(p.92)
- • Diversification through introduction of new product categories like paddy seeds(p.92)
- • Benefits of public listing to enhance brand visibility and access to capital(p.90)
- • Growing farmer demand and market fragmentation offering consolidation opportunities(p.94)
- • Expansion into new geographic regions(p.165)
- • Entry into new crop segments(p.163)
- • Rising demand driven by population growth and dietary changes(p.165)
- • Expanding distribution network to increase reach(p.164)
- • Development of high-value hybrids with superior traits(p.163)
- • Growing organic farming market opportunity(p.165)
- • Government incentives for seed sector development through National Seeds Policy 2002(p.177)
- • Deregulation of agricultural commodities including seeds under Essential Commodities Act 2020(p.173)
- • APEDA initiatives for agricultural exports and cluster development(p.173)
- • Incentives for competitive seed market development through state-level tax removal(p.177)
- • SME Platform listing opportunities for capital raising and visibility(p.222)
- • Expansion of non-cotton seed portfolio with growing demand(p.268)
- • Development and commercialization of new hybrid varieties(p.268)
- • Geographic expansion to additional Indian states beyond current footprint(p.268)
- • Expansion of processing and storage capacity to support growth(p.268)
- • Growing demand for high-yield varieties suited to varied agroclimatic conditions(p.267)
- • Registered plant varieties and intellectual property in cotton hybrids(p.303)
- • In-house R&D unit recognition enabling research and innovation(p.302)
- • Multi-state dealer licenses enabling geographic expansion(p.302)
- • ISO 9001:2015 certification for quality management(p.305)
- • Registered trademarks across multiple product lines(p.306)
Threats
- • Seasonality of business tied to monsoon rainfall patterns, creating significant revenue volatility(p.34)
- • Weather conditions, crop diseases and pest attacks directly affecting seed production and demand(p.32)
- • Government price controls on cotton seeds under Seed Control Act limiting pricing strategy(p.33)
- • Intense competition from large corporations with greater R&D resources and market access(p.39)
- • Regulatory changes in Indian seeds industry including PPV&FR Act restrictions on product replication(p.42)
- • Dependence on third-party seed growers for production with no long-term contracts(p.33)
- • Export restrictions and international market volatility affecting cotton demand and pricing(p.39)
- • Essential Commodities Act enabling government control over supply, distribution and pricing of seeds(p.33)
- • High revenue concentration in India with exposure to domestic economic downturns(p.49)
- • Volatility in interest rates affecting debt servicing costs(p.47)
- • Regulatory changes and compliance requirements affecting business operations(p.55)
- • Inflation pressures eroding profitability without proportional revenue increases(p.55)
- • Economic slowdown and recessionary risks affecting customer demand(p.54)
- • COVID-19 pandemic and future health emergencies disrupting operations and demand(p.53)
- • Political instability and changes in government economic policies(p.55)
- • Terrorist attacks and civil unrest affecting market sentiment and operations(p.56)
- • Unpredictable monsoon dependency affecting crop yields(p.165)
- • Vulnerability to pest and disease outbreaks(p.165)
- • Climate change and erratic weather patterns(p.165)
- • Intense competition from domestic and international seed companies(p.165)
- • Price sensitivity of small-scale farmers(p.165)
- • Complex regulatory environment for seed certification and IP(p.165)
- • IP disputes and challenges(p.165)
- • Misinformation about hybrid seeds affecting adoption(p.165)
- • Stringent quality control and registration requirements for insecticides and seeds(p.174)
- • Regulatory risk from Central Government control of seed production and distribution(p.175)
- • Potential reimposition of commodity regulation due to price volatility (50-100% thresholds)(p.173)
- • Biological Diversity Act restrictions on use of biological resources without National Biodiversity Authority permission(p.174)
- • Compliance burden from multiple environmental laws affecting manufacturing operations(p.174)
- • Pandemic-related disruptions to operations and supply chains(p.269)
- • Rapid technological advancement requiring continuous innovation(p.269)
- • Intense competition in agriculture seeds industry(p.269)
- • Vulnerability to government policy changes in agriculture sector(p.269)
- • Dependence on seed quality certification and regulatory approvals(p.269)
- • Natural disasters and weather variability impacting seed production(p.269)
- • Monsoon dependency and agricultural sector cyclicality(p.277)
- • Economic sensitivity to commodity input prices and inflation(p.276)
- • Regulatory seed quality enforcement and compliance requirements across multiple states(p.297)
- • Seeds Act compliance obligations and regulatory approvals required for continued operations(p.302)
- • Pending seed quality litigation from promoters(p.299)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Kamleshkumar Jayantilal Patel | Promoter | 26.25% | — |
| Mr. Alpeshbhai Jayantibhai Patel | Promoter | 23.95% | — |
| Mr. Meet Kamleshkumar Patel | Promoter | 26.50% | — |
| Kamleshkumar Jayantilal Patel | Promoter | 26.25% | 19.29% |
| Alpeshbhai Jayantibhai Patel | Promoter | 23.95% | 17.60% |
| Meet Kamleshkumar Patel | Promoter | 26.50% | 19.48% |
| Kamlesh Patel | Promoter | — | — |
| Alpesh Patel | Promoter | — | — |
| Kamleshkumar Jayantilal Patel | Promoter | 26.25% | 19.29% |
| Alpeshbhai Jayantibhai Patel | Promoter | 23.95% | 17.60% |
| Meet Kamleshkumar Patel | Promoter | 26.50% | 19.48% |
| ALPESHBHAI JYANTIBHAI PATEL | Promoter | 23.95% | — |
| MEET KAMLESHKUMAR PATEL | Promoter | 26.50% | — |
| KAMLESHKUMAR JYANTIBHAI PATEL | Promoter | 26.25% | — |
Leadership
Ms. Pooja Vimal Dave · CFO
Ms. Chhayaben Ankitkumar Pujara · Company Secretary & Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Dhanlaxmi Crop Science IPO FAQs
What is the lot size of Dhanlaxmi Crop Science IPO?
The minimum lot size of Dhanlaxmi Crop Science IPO is 2,000 shares. One lot costs ₹1,10,000 at the cut-off price.
When does Dhanlaxmi Crop Science IPO open and close?
Dhanlaxmi Crop Science IPO opened for subscription on 09 Dec 2024 and closed on 11 Dec 2024.
What is the listing date of Dhanlaxmi Crop Science IPO?
Dhanlaxmi Crop Science IPO listed on 16 Dec 2024.