Leo Dry Fruits & Spices IPO: Public Issue Susbscribed 2x Within 5 Hours, GMP Flat; Check Other Details

The SME initial public offering (IPO) of Leo Dry Fruits and Spices Ltd opened for subscription on Wednesday, January 1, 2025. With an aim to raise Rs 25.12 crore, the IPO has garnered investor interest due to the company's financial growth and diversified product offerings. The issue, entirely a fresh allotment of 48.30 lakh equity shares, is priced between Rs 51 and Rs 52 per share and will remain open until Friday, January 3, 2025.

Subscription Status

As of 2:10 PM on the opening day, the IPO had been subscribed 1.93 times. The retail portion witnessed significant traction with 3.79 times subscription, while the non-institutional investors (NIIs) segment was subscribed 0.56 times. However, the Qualified Institutional Buyers (QIBs) segment had yet to receive any bids.

Key IPO Details

Price Band and Lot Size: Investors can bid within the price range of Rs 51 to Rs 52 per equity share. A single lot consists of 2,000 shares, making the minimum investment Rs 1,02,000 at the upper price band.

Reservation Quota: Half of the issue is reserved for QIBs, 35% for retail investors, and the remaining 15% for NIIs.

IPO Objectives: The proceeds will primarily address working capital needs, marketing initiatives, and other corporate purposes.

Lead Manager and Registrar: Shreni Shares Limited is the book-running lead manager, while Bigshare Services Pvt Ltd serves as the registrar for the issue.

Allotment and Listing Dates: The allotment is scheduled for Monday, January 6, with successful bidders receiving shares in their demat accounts by Tuesday, January 7. Refunds for unsuccessful bidders are also expected on the same day. The shares are slated for listing on the BSE SME platform on Wednesday, January 8, 2025, under SEBI's T+3 rule.

Grey Market Premium (GMP)

Despite the growing interest in the IPO, the grey market premium (GMP) for Leo Dry Fruits and Spices shares was nil as of Wednesday. This indicates that the shares might list at par with the issue price. However, GMP trends can change rapidly as the subscription period progresses.

Business Overview

Leo Dry Fruits and Spices operates under the brand names "VANDU" and "FRYD", offering a wide range of products, including spices, dry fruits, grocery items, and frozen/semi-fried goods. The company supplies whole and blended spices, plain, roasted, and flavored dry fruits, along with ghee, poppy seeds, sesame seeds, and various seasonings in diverse packaging sizes.

Financial Performance

Leo Dry Fruits and Spices has demonstrated remarkable financial growth over the past three fiscal years.

In FY22, the company reported a modest Profit After Tax (PAT) of Rs 7.90 lakh. However, in FY23, PAT saw a significant surge, reaching Rs 3.63 crore, showcasing a major improvement in profitability. This upward trajectory continued into FY24, with PAT further climbing to an impressive Rs 6.64 crore.

Stock Market

The IPO marks a milestone for the company as it seeks to expand its business and tap into the demand for high-quality dry fruits and spices in India. The absence of a grey market premium suggests cautious optimism.