Dhanlaxmi Crop Science soars nearly 100% on NSE SME debut

Dhanlaxmi Crop Science made a stellar debut on the NSE SME platform, listing at Rs 104.50 per share, a remarkable 90 per cent premium to its IPO price of Rs 55.

The momentum continued as the stock hit the upper circuit at Rs 109.70, registering a total gain of 99.45 per cent from the issue price.

Trading activity
During the session, around 1.3 million shares exchanged hands, with a total turnover of Rs 13.92 crore before trading was halted. The National Stock Exchange (NSE) has capped listing gains for SME stocks at 90 per cent of the issue price, in line with regulatory norms.

IPO subscription 
The Rs 23.80-crore initial public offering (IPO) of Dhanlaxmi Crop Science received an overwhelming response, being oversubscribed more than 555 times. The IPO, which closed on December 11, 2024, offered 43,28,000 fresh shares priced in the range of Rs 52-55 per share with a minimum lot size of 2,000 shares. The allotment of shares was finalized on December 12, 2024.

Utilization of funds
As outlined in its Red Herring Prospectus (RHP), the company plans to use the IPO proceeds to meet working capital needs, cover issue-related expenses, and fund general corporate purposes.

Founded in 2005, Dhanlaxmi Crop Science is a technology-driven seeds company specializing in the development, production, and sale of seeds for 24 field crops and vegetables. Operating in five states across India, the company uses a combination of traditional breeding methods and biotechnological tools to deliver high-yielding seeds, with cotton seeds contributing significantly to its profits.

Market trends and outlook
The robust listing aligns with grey market trends, where the company’s shares commanded a premium of Rs 50 or 90.91 per cent ahead of the debut. With its strong market position and growth potential in the agriculture sector, Dhanlaxmi Crop Science has caught the attention of investors and market watchers alike.

Bigshare Services acted as the registrar for the IPO, while Finshore Management Services served as the sole book-running lead manager.