Leo Dry Fruits and Spices Trading IPO has launched its Initial Public Offering (IPO) on January 1, 2025, which will remain open for subscription until January 3, 2025.
Key Details of the IPO:
- Issue Size: The company aims to raise ₹25.12 crore through a fresh issue of 48.30 lakh equity shares.
- Price Band: The shares are priced between ₹51 and ₹52 per share.
- Lot Size: Investors can bid for a minimum of 2,000 shares, amounting to ₹1,04,000 at the upper price band.
- Use of Proceeds: The funds will be utilized for working capital requirements, branding, advertisement, marketing activities, and general corporate purposes.
Company Overview:
Leo Dry Fruits and Spices Trading Ltd, established in November 2019, operates under the brand names “VANDU” and “FRYD,” offering a diverse range of products, including spices, dry fruits, and frozen/semi-fried items. The company distributes its products through B2B, B2C, and D2C channels, utilizing e-commerce platforms, distributors, and direct sales. Their manufacturing facility is located in Thane, Maharashtra.
Leo Dry Fruits and Spices Trading IPO Financial Performance:
The company’s financials have shown significant growth over the past few years:
Revenue:
- FY23: ₹3,643.96 lakh
- FY24: ₹6,216.59 lakh (a 70.56% increase)
Profit After Tax (PAT):
- FY23: ₹535.26 lakh
- FY24: ₹958.68 lakh (a 79% increase)
H1 FY25 (as of September 30, 2024):
- PAT: ₹267.60 lakh
Valuation Metrics:
- Price-to-Book Value (P/BV): The issue is priced at a P/BV of 1.90 based on its NAV of ₹27.39 as of September 30, 2024, and at a P/BV of 2.24 based on its post-IPO NAV of ₹23.20.
Conclusion:
Leo Dry Fruits and Spices Trading Ltd presents an opportunity in the growing Indian spices and dry fruits market. However, potential investors should carefully consider the company’s limited operational history, recent financial performance, involvement in legal proceedings, and previous negative cash flows. Conducting thorough due diligence and assessing personal risk tolerance is crucial before making an investment decision.
Leo Dry Fruits and Spices Trading IPO Returns
Here’s an organized table with hypothetical returns on Leo Dry Fruits and Spices Trading IPO based on price bands and potential listing gains:
| Particulars | Details |
| IPO Price Band | ₹51 to ₹52 per share |
| Lot Size | 2,000 shares |
| Investment Amount | ₹1,02,000 (at ₹51) to ₹1,04,000 (at ₹52) |
| Expected Listing Price | ₹55 (hypothetical) |
| Expected Listing Gain | ₹3 to ₹4 per share |
| Total Gain per Lot | ₹6,000 to ₹8,000 |
| Return on Investment | 5.88% to 7.69% |
Explanation:
- Listing Price: Hypothetical listing price of ₹55 is assumed based on speculative market conditions.
- Total Gain per Lot: Calculated as
(Listing Price - Issue Price) x Lot Size.
- Return on Investment (ROI):
(Total Gain / Investment Amount) x 100.
Leo Dry Fruits and Spices Trading IPO Growth
Here’s a table summarizing the growth of Leo Dry Fruits and Spices Trading Ltd based on their financial performance in recent years:
| Year | Revenue (₹ Lakhs) | Profit After Tax (₹ Lakhs) | Growth in Revenue (%) | Growth in PAT (%) |
| FY22 | 1,860.12 | 7.90 | – | – |
| FY23 | 3,643.96 | 535.26 | 95.89% | 6,677.72% |
| FY24 | 6,216.59 | 958.68 | 70.56% | 79.18% |
| H1 FY25 | 1,788.12 | 267.60 | – | – |
Leo Dry Fruits and Spices Trading IPO Key Highlights:
Revenue Growth:
- The company’s revenue has nearly doubled between FY22 and FY23, showing strong operational scalability.
- FY24 shows a 70.56% increase in revenue compared to FY23.
Profit Growth:
- Profit After Tax (PAT) has seen exponential growth from FY22 to FY23, attributed to improved operational efficiency and scaling of sales.
- FY24 PAT increased by 79.18%, indicating continued profitability.
H1 FY25:
- Revenue and PAT for the first half of FY25 indicate a slowdown compared to previous years, highlighting potential challenges in maintaining consistent growth.
Compounded Annual Growth Rate (CAGR):
- CAGR for Revenue (FY22-FY24): ~83.48%
- CAGR for PAT (FY22-FY24): ~1,005.35%
Conclusion:
The company’s growth trajectory has been impressive, with strong top-line and bottom-line expansion. However, the slowdown in H1 FY25 calls for cautious optimism. Investors should analyze factors such as scalability, operational margins, and industry conditions for future growth potential.
Strengths of Leo Dry Fruits and Spices Trading Ltd:
(1) Diverse Product Portfolio:
- Offers a wide range of products, including dry fruits, spices, and semi-fried frozen foods, catering to varied customer preferences and markets.
(2) Strong Revenue Growth:
- Impressive revenue growth in recent years, with a Compound Annual Growth Rate (CAGR) of ~83.48% for FY22–FY24, showcasing robust demand and operational scalability.
(3) Established Brand Presence:
- Operates under recognizable brands like “VANDU” and “FRYD”, building consumer trust and loyalty in the competitive food industry.
(4) Multi-Channel Sales Approach:
- Utilizes B2B, B2C, and D2C channels, ensuring broad market reach and customer engagement through e-commerce platforms, retail distributors, and direct sales.
(5) Modern Manufacturing Facilities:
- A state-of-the-art facility in Thane, Maharashtra, enabling high-quality production and adherence to food safety standards.
(6) Export Potential:
- Opportunities to expand into global markets, leveraging the increasing demand for Indian spices and dry fruits internationally.
(7) Growing Industry:
- Operates in the high-growth Indian food processing and trading industry, supported by rising health awareness and demand for premium-quality food products.
Risks of Leo Dry Fruits and Spices Trading Ltd:
(1) Limited Operational History:
- Established in 2019, the company has a relatively short track record, posing risks in terms of sustaining long-term growth and stability.
(2) Revenue Concentration:
- Dependence on specific product categories or markets could impact performance during demand fluctuations or economic downturns.
(3) Financial Volatility:
- While the company has grown significantly, H1 FY25 shows slower revenue and profit growth, raising concerns about consistent performance.
(4) Legal Proceedings:
- Involvement in ongoing litigations could lead to financial or reputational setbacks if outcomes are unfavorable.
(5) Competitive Landscape:
- Faces stiff competition from established players and new entrants in the dry fruits, spices, and frozen food segments, which could pressure margins and market share.
(6) Negative Cash Flow History:
- Past instances of negative cash flows from operations indicate potential liquidity issues that may challenge future growth and working capital management.
(7) Dependence on Raw Materials:
- Vulnerable to fluctuations in raw material prices, particularly for dry fruits and spices, which are subject to climatic, geopolitical, and supply chain factors.
(8) Economic and Market Risks:
- A slowdown in consumer spending, inflation, or changes in trade policies could adversely affect the company’s operations and profitability.
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