Dhanwel Hybrid Seeds Ltd. IPO

Dhanwel Hybrid Seeds

• Dhanwel Hybrid Seeds is coming out with an initial public offering (IPO) of 27,00,000 shares in a price band of Rs 95-99 per equity share.
• The issue will open for subscription on August 19, 2026 and will close on August 21, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 9.50 times of its face value on the lower side and 9.90 times on the higher side.
• Book running lead manager to the issue is Wealth Mine Networks.
• Compliance officer for the issue is Parul Agarwal.

Profile of the company

Dhanwel Hybrid Seeds is engaged in the business of seed manufacturing, which includes the development, multiplication, processing, and supply of seeds for a variety of field crops and vegetables. The seed production process is carried out in a structured manner across multiple stages and involves the use of improved genetic seed material procured from recognised sources. Such seed material is multiplied, processed, conditioned, and handled in accordance with prescribed agronomic and processing practices to produce seeds suitable for agricultural use, including seeds supplied to farmers for crop cultivation.

The company procures genetic seed material, including breeder and other suitable seed material, from recognised agricultural institutions, government-supported research organizations and open market. In addition, seed production is undertaken through arrangements with identified seed-growing farmers, wherein agricultural land owned by such farmers is utilised for cultivation. Under these arrangements, the company supplies the requisite seed material and provides technical guidelines and cultivation protocols. The farmers carry out sowing and related agricultural operations in accordance with the company’s instructions, while the company’s field staff and agronomists monitor and supervise the crop to maintain quality standards. Although the ownership of agricultural land remains with the farmers, seed production undertaken through contractual arrangements is carried out in accordance with the company’s prescribed guidelines and supervision, and all subsequent processing, quality control, and commercial activities relating to such seeds are undertaken by the company.

The company presently works with a limited number of contract seed-growing farmers under formal arrangements. However, the company is not dependent exclusively on such contract farmers for seed availability. In cases of operational requirements, crop-specific demand, or supply constraints, the company also procures seeds directly from farmers and the open market. Such procured seeds are thereafter subjected to sorting, cleaning, grading, processing, quality checks, labelling, and packing at the company’s processing facility before being sold in the market.

Proceed is being used for:

• Funding towards repayment or prepayment, in full or in part, of borrowings availed by the company from banks and financial institutions
• Funding the working capital requirements of the company
• General corporate purposes

Industry overview

Agriculture is one of the cornerstones of India’s economy and society, providing a livelihood to nearly 55% of the population. With the world’s second-largest agricultural land area, India is a global leader in farm output. India’s agricultural output has expanded significantly in the past decade, recording 40% growth and achieving surplus capacity for exports. In FY25, the sector grew by 5.4% year-on-year, supported by record production and higher trade volumes. Agricultural exports touched an all-time high of Rs. 4,40,000 crore ($ 51.86 billion) in FY25, up from Rs. 3,95,793 crore ($48.15 billion) in FY24. Agriculture and allied activities together contributed 17.8% to India’s GDP in 2023-24, reaffirming the sector’s importance to the national economy.

India’s agriculture sector is poised for sustained growth, supported by rising exports, greater investments, and targeted policy interventions. Agriculture and fisheries exports grew from Rs 2,49,264 crore ($35.16 billion) in FY20 to Rs. 4,33,819 crore ($51.23 billion) in FY25, registering a CAGR of 7.82%. Tamil Nadu has set an ambitious target of Rs 42,745 crore ($5 billion) in seafood exports by strengthening coastal infrastructure and promoting value addition, while India as a whole aim to achieve Rs 8,549 crore ($1 billion) turmeric exports by 2030 through the National Turmeric Board and the SPICED scheme, retaining its dominant 58-66% global market share.

The current India seed market size stands at $3.82 billion in 2025 and is projected to reach $5.00 billion by 2030, reflecting a forecast CAGR of 5.55%. Sustained policy support, rising certified‐seed penetration, and expanding climate‐ smart varieties continue to anchor industry resilience. Government programs such as the National Mission on High-Yielding Seeds and the Clean Plant Program are fast-tracking premium seed adoption by funding disease-free planting material hubs, demonstration plots, and village-level clusters. Row crops dominate revenue because cereals, oilseeds, and fiber crops align with food-security and import-substitution priorities, while hybrids retain farmer loyalty thanks to consistent yield premiums under erratic rainfall. Meanwhile, protected cultivation and digital traceability pilots are opening lucrative niches for specialized vegetable and high-value seed segments. Competitive intensity is low because multinational pipelines compete with regionally adapted portfolios, yet counterfeit trade and GM regulatory uncertainty exert margin pressure.

Pros and strengths

Wide range of seeds and variants: The company offers a range of seeds across multiple field crops and vegetables, including groundnut, soybean, sesame, wheat, gram, cumin, fodder, bajri, onion, coriander, and among others. The product range is offered in line with market demand and operational requirements and is supplied in the ordinary course of business. The company may, from time to time, consider addition of new seed varieties or crops based on business requirements and availability.

Quality assurance: The company places importance on maintaining quality standards across its operations. The company is ISO 9001:2015 certified for manufacturing, processing, and supply of seeds. Quality considerations form part of routine business activities across sourcing, processing, and packing. Where considered appropriate, seeds are tested through government laboratories and other approved agencies.

Customer satisfaction: The company considers customer satisfaction to be an important aspect of its business operations. The company supplies its products to customers in the ordinary course of business and seeks to meet customer requirements through consistent product standards and routine commercial engagement. Ongoing business interactions and repeat transactions form part of normal business operations and support continuity of customer relationships.

Risks and concerns

Significant revenue dependence on Oil Seeds: The sale of Oil seeds is the largest contributor towards its total revenue, and contributed 56.67%, 55.41% and 65.39% to its revenue from operations in Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively. As a result, its business is exposed to risks related to product concentration. Its inability to produce sufficient quantities of its existing products in a timely manner or at all, its failure to develop new products that meet the evolving demands of its end consumers or to obtain the regulatory approvals for such products, the development of successful products by its competitors and general economic conditions. It cannot assure that the performance of its oil seeds will continue to meet its customers’ expectations. In addition, its business, financial condition, results of operations and prospects could be materially and adversely affected if one or more of these uncertainties or disruptions occur.

Reliance on limited number of suppliers may disrupt raw material supply: The substantial portion of its purchases has been dependent upon few suppliers. For instance, its top ten suppliers accounted for 58.55%, 24.61%, and 13.63% of its total purchase for the Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. It has not entered into long term agreements with its suppliers and the success of its business is accordingly significantly dependent on it maintaining good relationships with them for regular supply of its raw material. The inability of a supplier to meet these requirements, the loss of a significant supplier, or any labour issues or work stoppages at a significant supplier could disrupt the supply of raw materials and parts to its facilities, preventing the company from delivering to its customers, or cause returns of products.

Agricultural seasonality and weather conditions may adversely affect demand and financial performance: Its operations are closely aligned with agricultural cycles and are seasonal in nature. The demand for its seed products is largely dependent on monsoon patterns, timing and quantum of rainfall, sowing seasons, cropping patterns and farmers’ sowing decisions. Any delay, deficiency or excessin rainfall, or occurrence of unfavourable weather conditions, pest attacks or other natural factors, may adversely affect agricultural activity and reduce demand for its products. As a result of the seasonal nature of its business, a substantial portion of its revenues is generated during specific periods of the year, and its sales volumes and operating results may fluctuate significantly from quarter to quarter and year to year. Adverse climatic conditions during peak sowing seasons may have a material adverse effect on its business, financial condition, results of operations and cash flows.

Outlook

The company is engaged in the business of seed manufacturing, which includes the development, multiplication, processing, and supply of seeds for a variety of field crops and vegetables. The company procures genetic seed material, including breeder and other suitable seed material, from recognised agricultural institutions, government-supported research organizations and open market. On the concern side, the substantial portion of its revenues has been dependent upon few customers. For instance, its top ten customers accounted for 64.27%, 22.23% and 17.26% of its revenue from operations for the Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. The loss of any one or more of its major customers would have a material adverse effect on its business, cash flows, results of operations and financial condition.

The company is coming out with a maiden IPO of 27,00,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 95-99 per equity share. The aggregate size of the offer is around Rs 25.65 crore to Rs 26.73 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations increased from Rs 4,412.94 lakh in FY 2024-25 to Rs 7,458.69 lakh in FY 2025-26, reflecting a growth of 69.02%. Profit after tax increased from Rs 215.74 lakh in FY 2024-25 to Rs 611.54 lakh in FY 2025-26, reflecting a growth of 183.46%.

Meanwhile, the company seeks to strengthen its presence in existing markets while gradually expanding its reach to additional geographies, based on market opportunities and demand conditions. It intends to cater to the requirements of its existing customers and, where feasible, broaden its customer base through increased distribution reach. Its focus remains on maintaining long-term relationships with dealers, distributors, and farmers through consistent business engagement and reliable supply of products. Additionally, the company markets its products under the brand name ‘Dhanwel’. It intends to continue efforts aimed at enhancing brand visibility and recognition in existing and potential markets.

Vedant Poly Fabs

• Vedant Poly Fabs is coming out with an initial public offering (IPO) of 60,30,000 shares in a price band of Rs 88-94 per equity share.
• The issue will open on November 2, 2026 and will close on November 4, 2026.
• The shares will be listed on Emerge Platform of NSE.
• The face value of the share is Rs 10 and is priced 8.80 times of its face value on the lower side and 9.40 times on the higher side.
• Book running lead manager to the issue is Affinity Global Capital Market.
• Compliance Officer for the issue is Sourindra Nath Mukherjee.

Profile of the company

Vedant Poly Fabs is engaged in the manufacturing of flexible packaging materials and operate as a business-to-business (B2B) supplier to customers across India. The company’s product portfolio includes multilayer Low-Density (LD) films such as 3-layer and 5-layer films, shrink films, barrier films, printed laminates, and milk and oil pouches. These products are used for packaging applications across industries, including food and beverages and other consumer products.

The company manufactures products based on customer specifications, including size, thickness, material composition and printing requirements. Its operations are carried out through multiple stages such as extrusion, printing, lamination, slitting and pouching at its manufacturing facility. The company’s facility is equipped with the necessary machinery to undertake these processes within its premises, including multilayer extrusion machines and printing machines such as CI (Central Impression) flexo and rotogravure. This enables it to carry out manufacturing activities in an integrated manner and cater to varied product requirements.

The company’s products are supplied to customers for packaging and distribution of their products across various industries. Its business model involves direct interaction with customers to understand their packaging requirements. It generally receives orders through verbal communications from customers and undertakes manufacturing based on the specifications communicated by them, including product dimensions, material composition, printing requirements, quantities and delivery schedules. 

Proceed is being used for:

• Meeting the working capital requirements 
• Prepayment or repayment of all or a portion of certain secured or/and unsecured outstanding borrowings availed by the company 
• Funding capital expenditure for purchase and installation of plant and machinery at its existing manufacturing facility 
• General corporate purpose
• Meeting the offer expenses

Industry Overview

The India packaging market size is valued at $101.12 billion in 2025 and is forecast to reach $169.73 billion by 2030, advancing at a 10.73% CAGR. The India packaging market is shifting from commodity containers to technology-enabled solutions as Extended Producer Responsibility (EPR) rules demand 30% recycled content in rigid plastics by 2025 and 60% by 2029. Quick-commerce operators in tier-1 cities, rising exports of generic medicines, and consumer preference for sustainably sourced materials are expanding the India packaging market into new substrates, barrier coatings, and distribution models. Capital flows are accelerating as private equity groups finance consolidations that help converters fund automation, closed-loop recycling, and advanced analytics. Paperboard and compostable films are winning share as multinationals align procurement with global decarbonization targets, while domestic brands adapt pack formats for rural cold-chain gaps and multilingual labelling. Competition is also intensifying in bottle-to-bottle PET where joint ventures between global resin majors and local recyclers are scaling facilities close to Western and Southern manufacturing hubs.

The India Flexible Packaging Market size is worth $20.41 billion in 2025, growing at an 11.46% CAGR and is forecast to hit $35.11 billion by 2030. The increasing demand for lightweight and convenient packaging solutions is a primary driver, as consumers seek products that are easy to handle and store. Rising consumer awareness of sustainability issues has also led to a preference for eco-friendly packaging options. Technological advancements in the packaging industry have significantly improved shelf life and product protection, making flexible packaging more attractive to manufacturers. Flexible plastic packaging dominates India's plastic packaging market, comprising 75% of total usage. The FMCG sector prefers this packaging type for its versatility and cost-effectiveness. Small-scale manufacturers, focusing on cost, produce diverse multi-layered packaging compositions. This results in a wide range of non-recyclable flexible packaging entering the market.

In 2025, the global mono-material packaging market is valued at $4.9 billion and is likely to reach $7.8 billion by 2035, growing at a CAGR of 4.8%. This expansion underscores increasing demand for recyclable, low-complexity packaging formats. The mono-material packaging market is reshaping packaging systems globally, with current adoption rates reflecting changing priorities. In flexible packaging, mono-materials now account for 28-32% of the market, becoming the top choice for brands moving away from complex laminates. The food sector shows 22-25% uptake, especially for dry goods and dairy, while consumer goods reach 18-20%, driven by premium segments. Notably, mono-materials make up 35-40% of new packaging developments worldwide. Europe leads with 50-55% market presence, while North America follows at 35-40%. Asia’s 20-25% share is expanding quickly, supported by supply chain shifts. Growth continues at 14-16% annually, with mono-materials expected to dominate 60% of eco-friendly packaging by 2030. Advances in high-performance mono-material films and recycling technologies are accelerating this shift, alongside stricter regulations and corporate environmental goals. 

Pros and strengths

Integrated manufacturing operations: The company carries out its manufacturing operations at its in-house facility, where multiple stages of the production process are undertaken within its premises. These include extrusion of films, printing, lamination, slitting and rewinding. Undertaking these processes within a single facility enables it to coordinate production activities across different stages and align them with customer requirements. It also allows it to manage the flow of materials from initial processing to final finished products in a structured manner. The company’s integrated manufacturing setup supports monitoring and control across production stages and enables it to plan and execute production in accordance with customer specifications.

Quality control mechanism: The company’s manufacturing operations are supported by an in-house laboratory equipped with various testing instruments for evaluating the quality and performance of its products. It undertakes quality checks at various stages of the manufacturing process, including in-process checks and testing of semi-finished and finished products, in accordance with internal standards and applicable industry requirements.

Diversified product portfolio and product development capabilities: The company manufactures a range of flexible packaging products, including multilayer LD films, printed laminates and pouches, which are used across various packaging applications in industries such as food and beverages and other consumer products. The company’s product portfolio enables it to cater to varied customer requirements across applications and reduces dependence on any single product category. It undertakes product development based on customer specifications, including introduction of new designs and product variations in terms of size, thickness, material composition and printing.

Risks and concerns  

High dependence on key raw material suppliers: The company is dependent on its key suppliers for uninterrupted supply of Raw-Materials. The company has procured 77.03%, 49.06% and 26.46% of its raw material from top 5 suppliers in FY26, FY25 and FY24 respectively. Any shortfall in the supply of its raw materials, or an increase in its raw material costs and other input costs, may adversely affect the pricing and supply of its products with subsequently having an adverse effect on the business, results of operations and financial conditions of the company.

Dependence on limited number of customers: The company has derived a substantial portion of its revenue from a limited number of key customers. Its top ten customers have contributed 79.33%, 69.64%, 30.15% and 13.49% of its total sales for the financial period April 01, 2026- June 30, 2026 and for the financial year ended March 31, 2026, March 31, 2025 and March 31, 2024 on Restated Standalone Basis. The loss of any significant customers may have a material and adverse effect on its business and results of operations.

Geographical concentration of revenue in West Bengal: Significant portion of the company’s revenue is concentrated in West Bengal. The company has garnered 95.81%, 96.80%, 97.90% and 98.64% of its total revenue from West Bengal for the financial period April 01, 2026- June 30, 2026 and for the financial year ended March 31, 2026, March 31, 2025 and March 31, 2024 respectively. Any factors relating to political and geographical changes, growing competition and any change in the demand for its service by customers of these states may adversely affect its ability to retain them. The company cannot assure that it shall generate the same quantum of business, or any business at all, from these states, and loss of business from one or more of them may adversely affect its revenues and profitability.

Outlook

Vedant Poly Fabs is engaged in the manufacturing of flexible packaging materials for businesses across India. The company operates as a B2B supplier and offers a diverse range of packaging products, including 3-layer and 5-layer LD films, shrink films, barrier films, printed laminates, and milk and oil pouches, catering to industries such as food & beverages and other consumer goods. The company has integrated manufacturing operations and has diversified flexible packaging product portfolio. On the concern side, the company faces risks arising from its significant dependence on a limited number of key suppliers and customers, exposing it to potential supply disruptions, rising input costs and loss of revenue. Further, its revenue concentration in West Bengal exposes it to regional, political and competitive risks. Any adverse developments in these areas may negatively impact its business operations, financial condition and profitability.

The company is coming out with a maiden IPO of 60,30,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 88-94 per equity share. The aggregate size of the offer is around Rs 53.06 crore to Rs 56.68 crore based on lower and upper price band respectively. On performance front, the revenue from operations for Financial Year 2025-26 stood at Rs 11,513.91 lakh as against Rs 8,102.12 lakh in Financial Year 2024-25, representing an increase of 42.11%. Moreover, the company’s reported PAT of Rs 1,096.62 lakh in FY 2025-26, marking an increase of 140.45% compared to Rs 456.06 lakh in FY 2024-25.

Meanwhile, the company supplies its products directly to customers without reliance on intermediary distributors or agents. This enables it to engage directly with customers, understand their requirements and align its offerings accordingly. The company’s direct sales model supports better coordination in relation to product specifications and order execution, and enables it to respond to customer requirements in a timely manner. The company has developed business relationships with several of its customers over the years and receive repeat orders from such customers based on their packaging requirements. The company’s direct interaction with customers enables it to understand their requirements and support timely execution of orders.