Leo Dry Fruits & Spices Lists at 31% Premium, Demonstrates Strong Market Reception on BSE SME

Leo Dry Fruits & Spices Trading Limited, a specialized manufacturer and trader of spices and dry fruits operating since 2019, marked a strong entry into the public markets on Wednesday, 8th January 2025. The company, which has established itself with popular brands like VANDU and FRYD across B2B, B2C, and D2C channels, commenced trading on the BSE SME platform amid significant investor enthusiasm.

Leo Dry Fruits & Spices Listing Details

The company's market debut reflected robust investor confidence in its business model and growth prospects:

• Listing Time & Price: When trading commenced at market open, Leo Dry Fruits shares debuted at ₹68 on BSE SME, delivering an impressive 30.77% premium to IPO investors. This strong opening validates the market's recognition of the company's established brand presence and multi-channel distribution capabilities.
• Issue Price Context: The considerable premium emerged after the company had strategically priced its IPO between ₹51 and ₹52 per share, ultimately fixing the final issue price at ₹52. This pricing approach successfully balanced retail investor accessibility with fair value for the company's growth potential.
• Price Evolution: By 10:26 AM IST, some profit booking emerged as the stock traded at ₹67.20, still maintaining a solid 29.23% premium over the issue price after touching an intraday high of ₹68, demonstrating sustained investor interest despite some consolidation.

Leo Dry Fruits & Spices First-Day Trading Performance 

The trading activity showed robust participation and strong investor conviction:

Volume and Value: Within just the first few hours, 16.86 lakh shares changed hands, generating a turnover of ₹11.25 crore. Notably, 100% of traded shares were marked for delivery, indicating genuine investment interest rather than speculative trading.
Demand Dynamics: The stock's trading pattern showed measured participation with sell orders for 1.94 lakh shares against buy orders for 92,000 shares, reflecting some profit taking after the strong opening gains.

Leo Dry Fruits & Spices Market Sentiment and Analysis

• Market Reaction: Strong opening followed by healthy consolidation
• Subscription Rate: The Leo Dry Fruits IPO was significantly oversubscribed by 181.77 times, with NIIs leading at 394.59 times subscription, followed by retail investors at 154.5 times, and QIBs at 68.06 times
• Pre-listing Interest: Anchor investors demonstrated confidence by investing ₹6.88 crore before the public issue

Leo Dry Fruits & Spices Growth Drivers and Challenges

Expected drivers of future performance:

• Experienced management team
• Diverse product portfolio
• In-house manufacturing capabilities
• Strong brand equity
• Wide customer base

Potential challenges:

• Recent rapid growth sustainability
• Raw material price volatility
• Competitive FMCG market
• Working capital needs
   

Utilisation of IPO Proceeds 

The ₹25.12 crore raised will be used for:

• Working capital requirements
• Branding and marketing activities
• General corporate purposes

Leo Dry Fruits & Spices Financial Performance 

The company has shown exceptional growth:

• Revenue increased by 71% to ₹62.27 crore in FY2024 from ₹36.47 crore in FY2023
• H1 FY2025 (ended September 2024) showed revenue of ₹17.88 crore with PAT of ₹1.87 crore
• Strong financial metrics with ROE of 34.12% and ROCE of 33.52%

As Leo Dry Fruits & Spices begins its journey as a listed entity, market participants will closely monitor its ability to maintain growth momentum and strengthen its brand presence. The strong listing and sustained premium suggest robust investor confidence in the company's prospects in the specialty foods sector, particularly given its integrated business model spanning manufacturing to direct consumer sales.