Services
Stock Market Masterclass
Equity Trading with CA Abhay
Equity Investment with CA Abhay
Option Trading with CA Abhay
FNO Stocks with CA Abhay
Leo Dryfruits & Spices Shares List at ₹68, 31% Premium Over IPO Price
Team Finance Saathi
08/Jan/2025
What's covered under the Article:
- Leo Dryfruits & Spices shares debut at ₹68, showing a 31% premium over the issue price of ₹52.
- The IPO received strong interest, with a subscription rate of 181.77 times, particularly from non-institutional investors.
- The company plans to expand its market reach with its popular VANDU and FRYD product brands.
Leo Dryfruits & Spices Trading made a strong debut on the BSE SME platform with its shares listing at ₹68 per share, reflecting a 31% premium over the issue price of ₹52. However, after reaching the ₹68 mark, the stock price dipped slightly to ₹66.50, indicating some post-listing volatility. Despite this dip, the overall debut was well-received by investors, especially given the impressive subscription numbers, where the IPO was subscribed 181.77 times. This oversubscription, driven largely by non-institutional buyers, signals robust market interest and investor confidence in the company’s future growth prospects.
Leo Dry Fruits and Spices Trading is a key player in the manufacturing, processing, and trading of a wide array of food products, primarily under the brand names "VANDU" for dry fruits and spices, and "FRYD" for frozen and semi-fried items. The company offers products such as roasted and flavored dry fruits, blended spices, and a range of grocery products including ghee, seasoning, poppy seeds, and sesame seeds, all in various packaging sizes.
The company aims to leverage its strong brand presence and market expertise to expand its market reach. The IPO, which was a Book Built Issue amounting to ₹25.12 crore, involved the issuance of 48.30 lakh shares, and the subscription period ran from January 1 to January 3, 2025, with the listing scheduled for January 8, 2025. The market capitalization of the company at the issue price of ₹52 per share stands at ₹93.03 crore. For investors, the lot size for the IPO was set at 2,000 shares, meaning retail investors needed to invest a minimum of ₹1,04,000, while High-Net-Worth Individuals (HNIs) had to invest at least ₹2,08,000.
IPO Performance and Grey Market Premium:
Before the listing, Leo Dry Fruits and Spices Trading enjoyed a Grey Market Premium (GMP) of ₹10, suggesting potential gains of 19.23%. While this hinted at a promising debut, the post-listing performance showed some fluctuations. At the time of listing, the stock initially surged to ₹68 but later settled at ₹66.50. Despite these fluctuations, the company’s solid fundamentals and strong growth trajectory remain key factors that make it a potential long-term investment opportunity.
Financial Performance and Growth:
Leo Dry Fruits and Spices has experienced steady revenue growth, with FY24 revenues of ₹6,226.51 lakh, a significant jump from ₹526.54 lakh in FY22. The company’s EBITDA for FY24 was ₹1,123.08 lakh, and its Profit After Tax (PAT) stood at ₹663.69 lakh, demonstrating healthy profitability. These figures suggest that the company is on a solid growth path, driven by a combination of increased scale and operational efficiencies.
The pre-issue earnings per share (EPS) were reported at ₹5.21, while the post-issue EPS stands at ₹3.71. This results in a pre-issue P/E ratio of 9.98x and a post-issue P/E ratio of 14.02x, both of which are significantly lower than the industry average of 71x. This makes the IPO fairly priced when compared to industry peers, further strengthening its appeal to long-term investors.
Subscription and Market Sentiment:
The IPO attracted considerable investor interest, with a subscription rate of 181.77 times, indicating a strong market sentiment. A notable portion of the demand came from non-institutional buyers, who were eager to participate in the offering. The Anchor Investors were also part of the subscription process, with the company raising ₹6.88 crore from them at the issue price of ₹52 per share.
For investors looking to understand the latest in the IPO market, including upcoming IPOs and subscription details, Leo Dry Fruits and Spices Trading offers a promising opportunity for those interested in the growing food products sector. Its diverse product range and brand recognition provide a solid foundation for future growth in the competitive market landscape.
Conclusion:
The Leo Dry Fruits and Spices Trading IPO marked a successful listing on the BSE SME platform with a solid 31% premium over the issue price, showcasing strong investor interest. Despite post-listing fluctuations, the company’s strong financial performance and growth potential in the dry fruits and spices market make it a worthwhile investment for those looking for opportunities in the Indian IPO market.
The Upcoming IPOs in this week and coming weeks are Sat Kartar Shopping,Barflex Polyfilms.