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Leo Dry Fruits and Spices Trading IPO Subscribed 169.08x, GMP Soars; Check Allotment & Listing Dates
Team Finance Saathi
06/Jan/2025
What's covered under the Article:
- Overview of Leo Dry Fruits and Spices Trading, including brand portfolio and product categories.
- Subscription status, GMP trends, and potential listing gains.
- Key financial highlights and performance metrics to assess the investment opportunity.
Leo Dry Fruits and Spices Trading IPO offers investors an opportunity to invest in a growing company that manufactures, processes, and markets a wide range of spices, dry fruits, and grocery products. Under the brands VANDU and FRYD, the company offers a variety of products, including blended spices, roasted dry fruits, seasonings, and more. The Leo Dry Fruits and Spices Trading IPO is a Book Built Issue amounting to ₹25.12 Crores, with 48.30 Lakh shares being offered at a price range of ₹51 to ₹52 per share.
The subscription period for this IPO began on January 1, 2025, and will close on January 3, 2025. The allotment date is scheduled for January 6, 2025, and the shares are expected to list on the BSE SME on January 8, 2025. The market capitalization at the upper price band of ₹52 per share is expected to be ₹93.03 Crores, which is relatively moderate compared to the industry.
IPO Subscription and Allotment Information:
- The lot size for retail investors is set at 2,000 shares, requiring an investment of ₹1,04,000, while High-Net-Worth Individuals (HNIs) will need to invest ₹2,08,000 for two lots (4,000 shares).
- The GMP (Grey Market Premium) as of January 2, 2025, is ₹0, indicating no significant price movement in the unorganized market. This suggests caution as the GMP does not reflect the official trading price, which will only be determined post-listing.
Subscription Status:
- As of January 3, 2025, the IPO has been subscribed 169.08 times, highlighting strong investor interest. The final subscription status can be checked live on the BSE website.
Anchor Investors:
- The company has raised ₹6.88 Crores from Anchor Investors, with 13.24 Lakh equity shares allocated at ₹52 per share, which might indicate institutional confidence in the offering.
Financial Performance Overview:
- Revenues from operations for FY 2024 were ₹6,226.51 Lakh, a significant increase from the previous year. The EBITDA for the same period was ₹1,123.08 Lakh, reflecting strong profitability. Profit After Tax (PAT) for FY 2024 stood at ₹663.69 Lakh.
- The pre-issue EPS is ₹5.21, with a P/E ratio of 9.98x, while the post-issue EPS is ₹3.71, with a P/E ratio of 14.02x. These figures are considerably lower than the industry P/E ratio of 71x, suggesting the IPO is attractively priced.
Objectives of the IPO: The funds raised from the IPO will be used for:
- Working capital requirements: ₹1,500.00 Lakh
- Branding, Advertisement, and Marketing: ₹425.00 Lakh
- General corporate purposes.
Investment Considerations: Despite strong demand reflected in the subscription status, the Grey Market Premium being at ₹0 raises concerns about immediate listing gains. While the financials reflect growth and profitability, especially with a ROCE of 33.52% and ROE of 34.12%, the IPO's valuation suggests moderate growth potential. Based on these metrics, the IPO is priced fairly, but for those seeking immediate listing gains, this offering might not be ideal.
Leo Dry Fruits and Spices Trading IPO Review: Considering the steady financial growth, brand presence, and the diversified product portfolio, Leo Dry Fruits and Spices Trading Limited is well-positioned for long-term growth in the spices and dry fruits sectors. However, due to the absence of significant Grey Market Premium and the relatively low IPO price movement, we recommend investors avoid this IPO if they are focused on short-term gains, but it could still be a good long-term investment for those willing to hold post-listing.