Leo Dry Fruits and Spices IPO

Leo Dryfruits & Spices Trading Ltd

₹1,02,000 /2000 sharesMinimum Investment

Leo Dry Fruits and Spices IPO Listing Details

Listed OnIssue PriceListing PriceListing Gains
--₹52.00₹68.00₹16.00 (30.77%)

Leo Dry Fruits and Spices IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
1 Jan ‘25 - 3 Jan ‘25₹1,02,0002,000₹51 - ₹52
Issue SizeIPO Doc
25.11Cr
RHP PDF

Subscription rate

As of 03 Jan'25, 05:00 PM
Qualified Institutional Buyers68.06x
Non-Institutional Investor287.27x
Retail Individual Investor133.65x
Total157.96x

About Leo Dry Fruits and Spices

Leo Dry Fruits and Spices Trading manufactures, processes, trades and markets products such as spices, dry fruits, and other grocery items under the “VANDU” brand, as well as frozen and semi-fried products under the “FRYD” brand. The company offers whole and blended spices, plain, roasted, and flavoured dry fruits, along with products such as ghee, seasoning, poppy seeds, and sesame seeds, among others, in different packaging sizes. The business operates across two key verticals: trading and manufacturing/processing. In the trading division, the company deals with bulk and smaller quantities of whole spices, dry fruits, and frozen/semi-fried products. In the manufacturing/processing division, the company focuses on blended spices and other grocery items like “chiz bites” and seasonings, which are processed at the company’s facility.;
Founded in
2019
Managing director
Mr. Kaushik Sobhagchand Shah
Parent organisation
Leo Dryfruits & Spices Trading Ltd

Strengths & Financials of Leo Dry Fruits and Spices

Strengths
Risks
Leo Dry Fruits and Spices Trading operates a manufacturing and processing unit that holds an FSSAI license under the Food Safety and Standards Act, 2006.
In the B2C segment, the company engages in retail by offering whole spices, blended spices, dry fruits, and other grocery products under the “VANDU” brand. These products are distributed through various channels, including distributors, super stockists, e-commerce platforms like Amazon and Flipkart, and the company’s own website.
The company claims that it is equipped with modern machinery and facilities that enable the hygienic processing, grading, and packaging of its manufactured spices.
The company has seen a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 5.26 crore in FY22 to Rs 36.44 crore in FY23 to Rs 62.16 crore in FY24. PAT increased from Rs 0.08 crore in FY22 to Rs 3.63 crore in FY23 to Rs 6.64 crore in FY24.
The company, its promoters and directors are currently involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
The company does not own the “Vandu” trademark. The company has entered into a trademark license agreement with a firm owned by one of its promoters, Ketan Sobhagchand Shah, to use the trademark “Vandu” for a royalty payment of Rs 25,000 per annum.
The promoter group entities Sobhagchand & Sons, K K Corporation, J Ketankumar Co, K Sobhagchand Co and V S Spices are engaged in a similar line of business – primarily spices, grains and other grocery products. This could create a conflict of interest in the future.
A major portion of the company's revenue comes from trading activities. This segment contributed Rs 14.15 crore (79.15%) for the period ending September 30, 2024, and Rs 47.97 crore (77.17%), Rs 31.59 crore (86.70%), and Rs 5.26 crore (100%) in FY24, FY23, and FY22, respectively, to the revenue from operations. The company has to rely on third parties for the sourcing of the products. Any quality issues, unfavourable vendor terms, or changes in vendor strategies could adversely affect the company’s business operations and finances.
A substantial portion of revenue is generated from a small group of customers. The top 10 customers contributed Rs 16.69 crore (93.32%) for the period ending September 30, 2024, and Rs 27.53 crore (44.29%), Rs 15.62 crore (42.87%), and Rs 4.85 crore (92.21%) in FY24, FY23, and FY22, respectively, to the revenue from operations. Any loss of any major customer or a decline in business from them could adversely impact the company’s operations and financial performance.
The company relies heavily on its manufacturing and processing unit. Any sudden shutdown or failure to maintain or repair critical machinery could disrupt operations and affect the company’s overall performance.
The Maharashtra region accounted for over 90% of the company’s revenue in the last three financial years. Any adverse developments in the region could hit the company’s business operations. Also, failure to expand into new geographic markets could limit the company’s growth.
As of September 30, 2024, the company had total borrowings, including short-term and long-term debt, amounting to Rs 16.70 crore. Any inability to repay or service these loans could adversely affect the company’s financial position.

Leo Dry Fruits and Spices Financials

*All values are in Rs. Cr
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Application Details of Leo Dry Fruits and Spices IPO

Apply asPrice bandApply Range
Regular51 - 52₹2 - 5 Lakh
High Networth Individual51 - 52₹2 - 5 Lakh
For Leo Dry Fruits and Spices IPO, eligible investors can apply as Regular.