Leo Dry Fruits and Spices Trading, a prominent player in the spices, dry fruits, and grocery sectors, has launched its IPO offering a fresh issue of 48.30 lakh shares amounting to ₹25.12 crores. This IPO is significant as it opens a window for investors to gain exposure to a well-established brand with a strong presence under the VANDU and FRYD brands. The company specializes in the manufacture, processing, and trade of a variety of products, including whole and blended spices, roasted and flavored dry fruits, and a wide array of grocery products.

IPO Pricing and Subscription Details

The price range for the Leo Dry Fruits and Spices Trading IPO is set between ₹51 to ₹52 per equity share, with a market capitalization of ₹93.03 crores at the upper price band. The lot size for the IPO is 2,000 shares, requiring a minimum investment of ₹1,04,000 for retail investors and ₹2,08,000 for High-Net-Worth Individuals (HNIs), who are required to invest in two lots.

The IPO opened on January 1, 2025, and closes on January 3, 2025. As of 11:00 AM on January 3, 2025, the IPO was subscribed 27.59 times, signaling a strong demand for the issue. The final allotment is expected on January 6, 2025, with shares set to be listed on the BSE SME on January 8, 2025.

Financials and Growth Performance

The financials of Leo Dry Fruits and Spices Trading reflect solid growth. The revenue for the fiscal year ending September 30, 2024, was ₹1,788.24 lakh, up from ₹526.54 lakh in fiscal 2022. Their EBITDA for the same period showed a healthy increase to ₹353.88 lakh. The Profit after Tax (PAT) stood at ₹187.18 lakh for FY24, demonstrating the company's strong financial health. With a pre-issue EPS of ₹5.21 and post-issue EPS of ₹3.71, the company is attractively priced in comparison to the industry P/E ratio of 71x.

GMP and IPO Trends

The Grey Market Premium (GMP) for the IPO has been ₹0 as of recent trends, with a listing gain potential of approximately 19.23%. The Grey Market Premium provides a non-official indication of the IPO's expected listing price, based on market demand and investor interest. It’s important to note that GMP can fluctuate based on the market conditions, and no official trading occurs until the listing.

Anchor Investors and Major Investors

Leo Dry Fruits and Spices Trading has raised ₹6.88 crores from anchor investors at a price of ₹52 per share, showcasing institutional interest in the IPO. The anchor investors were allocated a total of 13,24,000 shares.

Objectives of the IPO

The proceeds from the IPO will primarily be used for working capital needs (₹1,500.00 lakh), as well as for branding, advertising, and marketing activities (₹425.00 lakh). The remaining funds will be utilized for general corporate purposes, helping the company expand its operations and further its growth in the competitive market of dry fruits, spices, and grocery products.

Should You Invest?

The Leo Dry Fruits and Spices Trading IPO presents a promising investment opportunity for those looking for exposure to the grocery and food products sector, which is expected to continue growing in the coming years. The company’s strong financials, growth trajectory, and attractive pricing make it a good investment for long-term growth, although the potential for listing gains appears limited based on the current GMP.

For those interested in IPO investing, it is important to remember that Leo Dry Fruits and Spices Trading IPO is priced reasonably compared to its peers, with an attractive P/E ratio of 9.98x pre-issue. Investors should also be mindful of the potential risks involved due to market conditions and other external factors affecting stock prices post-listing.

The Upcoming IPOs in this week and coming weeks are Indobell Insulation, Standard Glass Lining, Quadrant Future, Capital Infra Trust, Delta Autocorp, B R Goyal.

The Current active IPO is   Fabtech Technologies, Leo Dry Fruits, Davin Sons, and Parmeshwar Metal.

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