Dhanlaxmi Crop Science lists at 90% premium, hits upper circuit later

After listing, Dhanlaxmi Crop Science shares gained an additional 4.97 per cent, surging 99.45 per cent from the issue price to reach the upper circuit of Rs 109.70 apiece on the NSE SME

Dhanlaxmi Crop Science IPO listing today: Shares of technology-driven seeds company Dhanlaxmi Crop Science made a solid debut on the NSE SME today, continuing their upward momentum to hit the upper circuit within a few minutes of listing. The company's stock listed at Rs 104.50 apiece, a 90 per cent premium over the IPO allotment price of Rs 55.

 

After listing, the stock gained an additional 4.97 per cent, surging 99.45 per cent from the issue price to reach the upper circuit of Rs 109.70 apiece on the NSE SME. During the session, nearly 1.3 million shares, valued at Rs 13.92 crore, were traded before trading was halted.

 

Notably, the National Stock Exchange (NSE) has capped listing gains for SME stocks at 90 per cent of the issue price.

 

The Dhanlaxmi Crop Science IPO listing aligns with grey market trends, as the company’s shares were commanding a solid premium in unofficial markets. Ahead of the listing, Dhanlaxmi Crop Science shares were trading at Rs 105 apiece, reflecting a grey market premium (GMP) of Rs 50 or 90.91 per cent, according to sources tracking grey market activities.

 

The Dhanlaxmi Crop Science IPO, which closed for subscription on Wednesday, December 11, 2024, received massive demand from investors, with the issue being oversubscribed over 555 times. The Rs 23.80-crore offering comprises an entirely fresh issue of 43,28,000 shares, priced in a band of Rs 52-55 per share with a lot size of 2,000 shares. The allotment for the IPO shares was finalised on Thursday, December 12, 2024.

 

In its Red Herring Prospectus (RHP), Dhanlaxmi Crop Science said that it intends to utilise the proceeds from the public offering to meet working capital requirements and issue expenses. The company will also utilise the proceeds for general corporate purposes.

 

Bigshare Services serves as the registrar for the Dhanlaxmi Crop Science IPO. Finshore Management Services is the sole book-running lead manager for the public offering.

 

Dhanlaxmi Crop Science, a technology-driven seeds company founded in 2005, develops, produces, and sells seeds for various field crops and vegetables. It operates in five states in India and produces seeds for 24 different crops and vegetables. Cotton seeds account for the majority of the company's operating profit. The company integrates traditional breeding techniques with biotechnological tools to produce high-yielding seeds.