Dhanlaxmi Crop Science Ltd IPO

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Dhanlaxmi Crop Science Limited is a technology-driven seeds company with over 18 years of expertise in the Indian seeds industry. The company’s focus is on developing, producing, processing, and selling seeds for both field crops and vegetables. The distinguishing features of its operations include:

i. Hybrid and Open-Pollinated Varieties: Combining traditional breeding techniques with advanced biotechnology tools to produce seeds with:
a. Higher yields                      b. Enhanced product quality                          c. Pest and disease tolerance

ii. Agroclimatic Suitability: Offering seeds tailored for varying water availability, crop durations, and soil types across India.

Product Portfolio

The company produces seeds for 24 different field crops and vegetables, catering to diverse farming needs across 5 Indian states. Major crops include:
i. Field Crops: Cotton, Wheat, Cumin, Bajra, Maize, Gram, Soybean, Mustard, Groundnut, Black Gram, Guar, Sesame, Jowar, Red Gram, Green Gram, Castor, etc.
ii. Vegetables: Okra, Onion, Green Pea, and others.

Geographic Reach and Operational Scale

The company’s operations span five states in India, with products designed for diverse climatic and geographical conditions. Its widespread presence ensures relevance across different farming communities.

Strategic Vision

With a strong foundation built on technology, research, and farmer-centric products, Dhanlaxmi Crop Science Limited aims to solidify its leadership in the Indian seed industry while expanding its portfolio and geographic reach.

Objects of the Dhanlaxmi Crop Science Ltd IPO:

The Objects of the Issue are: i. To meet Working Capital Requirements, ii. To meet the Issue Expenses, iii. General Corporate Purposes.
DRHP of Dhanlaxmi Crop Science Ltd IPO
RHP of Dhanlaxmi Crop Science Ltd IPO

Dhanlaxmi Crop Science Ltd IPO Details:

Open Date: Dec 09 2024
Close Date: Dec 11 2024
Total Shares: 4,328,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 23.80 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 52 - 55 Per Equity Share
Listing At: NSE Emerge
Listing Date: Dec 16 2024

Promoters And Management:

Kamleshkumar Jayantilal Patel, 49, is the Promoter, Chairman, and Managing Director of the company, with over 20 years of experience in the agriculture sector. Initially appointed as a Non-Executive Director in 2016, he resigned in 2021, later rejoining in 2023 and becoming Managing Director from December 1, 2023, for five years. Known for his business acumen, he drives strategic decisions, regulatory compliance, risk management, and process improvements, playing a pivotal role in the company’s success and future growth. Alpeshbhai Jayantibhai Patel, 46, is the Promoter and Joint Managing Director of the company, associated since its inception in 2005. Appointed as the First Director, he was re-designated as Joint Managing Director from December 1, 2023, for five years. With over 15 years of experience in the agriculture sector, he oversees strategic planning, daily operations, and overall management. His strong analytical and financial skills have been instrumental in the company's success. Pankaj Dahyabhai Patel, 51, is the Whole Time Director of the company, associated since its inception in 2005. Appointed as the first director, he was re-designated as Managing Director from December 1, 2023, for five years. With over 15 years of experience in the agriculture industry, he specializes in sales, business development, and quality control, showcasing strong leadership and visionary skills.

Financials of Dhanlaxmi Crop Science Ltd IPO:

(In Cr.)
Particulars 30th Sep 2024 FY 24 FY 23 FY 22
Revenue 119.95 63.71 46.61 35.43
Growth 88.27% 36.69% 31.56% 19.09%
EBITDA 11.42 6.80 4.46 1.53
EBITDA Margins 9.52% 10.68% 9.57% 4.32%
PAT 8.21 4.65 3 0.58
PAT Margins 6.84% 7.30% 6.42% 1.64%
CFOA (7.01) 0.08 6.29 2.03

Comparison With Peers:

Companies Revenue EBITDA PAT D/E Ratio MCap P/E
Dhanlaxmi Crop Science       (FY 2024) 63.71 Cr. 6.80 Cr. 4.65 Cr. 0.31 89.80 Cr. 19.31
Mangalam Seeds Limited (TTM) 112 Cr. 19 Cr. (17%) 13 Cr. (11.60%) 0.73 225 Cr. 17.70
Upsurge Seeds of Agriculture Limited (TTM) 111 Cr. 15 Cr. (13%) 8 Cr. (7.21%) 0.20 172 Cr. 22.90

Recommendation on Dhanlaxmi Crop Science Ltd IPO:

Review and Recommendation of Dhanlaxmi Crop Science IPO by team IZ is 3/10.

Lead Manager of Dhanlaxmi Crop Science Ltd IPO:

  1. Finshore Management Services Limited

Registrar of Dhanlaxmi Crop Science Ltd IPO:

  1. Bigshare Services Private Limited

Company Address:

Dhanlaxmi Crop Science Ltd Survey No. 24, Opp. Arts and Commence College, Shamlaji High Way, N.H. No.8, Motipura, Sabar Kantha, Himatnagar, - 383001 Phone: +91 27 7224 4033 Email: cs@dhanlaxmiseeds.com Website: https://dhanlaxmiseeds.com/

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