The IPO of Dhanwel Hybrid Seeds will open for subscription on Wednesday, with the grey market indicating a muted listing outlook. The company's shares were commanding a grey market premium (GMP) of 0%, suggesting no expected listing gains at current levels.
The Rs 26.73-crore IPO is entirely a fresh issue of 27 lakh equity shares and will remain open for subscription till June 29. The company has fixed a price band of Rs 95-99 per share. Shares are proposed to be listed on the BSE SME platform on July 2, while the allotment is expected to be finalised on June 30.
Retail investors can bid for a minimum of 2,400 shares, requiring an investment of Rs 2.38 lakh at the upper end of the price band. The minimum application size for HNI investors is 3,600 shares, amounting to Rs 3.56 lakh.
The company plans to utilise the IPO proceeds towards repayment or prepayment of borrowings, funding working capital requirements and general corporate purposes.
Seed producer with diversified portfolio
Incorporated in 2018, Dhanwel Hybrid Seeds is engaged in the production, processing and marketing of seeds for field crops and vegetables. The company develops seeds by sourcing improved genetic material from research institutions, recognised organisations and the open market.
Its product portfolio includes groundnut, soybean, gram, sesame, wheat, green gram, black gram, fenugreek and cumin seeds, among others.
The company works with contract farmers for seed production, providing seed material and technical support while monitoring crop quality. The harvested seeds are processed at its manufacturing facility in Jashapar, Jamnagar, where they undergo cleaning, grading, treatment and packaging before being supplied to customers.
The company has also built an order book of around Rs 13.13 crore, reflecting healthy demand for its products.
Financial performance
Dhanwel Hybrid Seeds has reported strong financial growth over the past year.
For FY26, the company reported total income of Rs 74.59 crore, up 69% from Rs 44.13 crore in FY25. Profit after tax surged 183% to Rs 6.12 crore from Rs 2.16 crore a year earlier, while EBITDA increased to Rs 9.24 crore from Rs 3.66 crore.
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